|Bid||55.00 x 1100|
|Ask||55.01 x 800|
|Day's Range||54.80 - 55.42|
|52 Week Range||39.85 - 57.52|
|Beta (3Y Monthly)||0.82|
|PE Ratio (TTM)||26.05|
|Earnings Date||Feb 10, 2020 - Feb 14, 2020|
|Forward Dividend & Yield||0.37 (0.67%)|
|1y Target Est||60.47|
Today, Full Sail University and Blizzard Entertainment are proud to announce the 2019 Hearthstone Collegiate Championship Fall Finals will be held at The Fortress at Full Sail University in Winter Park, Florida on December 14. The live Finals will be played on the newly released Descent of Dragons expansion launching on December 10 and will be streamed live at twitch.tv/fullsailarmada
In further support of its HireHonor campaign and celebrating its 10th year of putting veterans back to work in meaningful jobs, The Call of Duty Endowment (C.O.D.E.) today announced the first ever CODE Bowl presented by U.S. Army Esports on December 13.
Activision stock is down as gamers move to mobile and even free games. Here is what the fundamentals and technical analysis say about buying ATVI stock now.
(Bloomberg) -- Playrix Holding Ltd., a mobile-game developer that made billionaires of its Russian founders, has bought into about a dozen studios to take on the likes of Activision Blizzard Inc. and Electronic Arts Inc.Brothers Igor and Dmitry Bukhman said in an interview that by 2025 they want Playrix’s sales to catch up with those of the U.S. gaming giants. Over the past year they’ve spent more than $100 million on acquisitions and are planning to more than quadruple their portfolio of titles from about four that are available now.While the gaming industry is awash in investors from KKR & Co. to Zynga Inc., the Bukhman brothers are determined to go it alone. They told Bloomberg News in April that while Wall Street dealmakers such as Goldman Sachs Group Inc. had been in touch, they wanted to expand the business themselves.Since then, the brothers haven’t been persuaded of the merits of giving up control over Playrix in favor of a bigger pot of cash to spend. They prefer to leverage their understanding of the industry to act as a consolidator and nurture smaller players.“Many firms are seeking acquisition targets to add to their revenue and show growth to investors,” Igor said. “We don’t have this pressure and are taking a more long-term approach -- we are helping our portfolio companies to grow. We are sharing our experience and playing a role in their growth.”Playrix said 2019 revenue is likely to reach $1.5 billion, as much as 30% more than the previous year’s, from sales of existing games including Gardenscapes. It was the ninth-biggest publisher last year, according to independent gaming data provider App Annie.New TitlesThe Bukhman brothers are betting their new titles, to be released over the next two years, will push sales into the realm of rivals such as Activision, which reported $7.5 billion in revenue for 2018.“Within five years, we are seeking to join the same league as Activision Blizzard or NetEase Inc., but in the European region,” said Igor, without specifying a revenue target.Playrix’s purchases include studios in Ukraine, Serbia, Russia, Croatia and Armenia, and the 600 people added boost its headcount by more than 50%. The investments range from 30% holdings to controlling stakes in companies that will continue to operate independently. These include Nexters, based in Cyprus and one of Europe’s 10 top-grossing game developers, and Vizor Games, based in Belarus.The brothers are valued at about $1.4 billion each by the Bloomberg Billionaires Index. They landed in the rankings by creating a new variety of match-3 games, which involve completing rows of at least three elements to progress through an animated storyline. The latest acquisitions will allow expansion into gaming genres such as hidden object and simulation.The mobile gaming business is set to exceed $68 billion in revenue this year, according to researcher Newzoo, and have been attracting attention from investors. Playrix will have to compete against these deep-pocketed players if it’s to achieve its goals.Zynga acquired Finnish developer Small Giant Games for $560 million last year, while Israeli Playtika Ltd bought Germany’s Wooga and Austria’s Supertreat. KKR-backed AppLovin invested in Belarusian developer Belka Games and two other firms in September.“Capturing lightning in a bottle twice is the true challenge for a creative firm,” said Joost van Dreunen, managing director of SuperData, Nielsen’s game research arm. “With the popularity of Gardenscapes, Playrix has finally established itself as a force to be reckoned with. However, to build a legacy it will need to repeat this trick.”(Adds analyst comment in last paragraph.)To contact the reporters on this story: Ilya Khrennikov in Moscow at email@example.com;Alex Sazonov in Moscow at firstname.lastname@example.orgTo contact the editors responsible for this story: Rebecca Penty at email@example.com, Jennifer Ryan, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Activision Blizzard, Inc. (NASDAQ: ATVI) has revealed the full 140-card set for “Descent of Dragons,” the latest expansion of the digital card game "Hearthstone" that comes out Dec. 10. "Descent of Dragons," players must use the cards to save the world from a plot by a group called the League of of E.V.I.L. According to Blizzard, Hearthstone, a free-to-play digital card game, has more than 100 million players worldwide.
Activision Blizzard (NASDAQ:ATVI) stock returned 18.5% in November, including dividends, and is now trading around $54. That's significantly better than Activision Blizzard's performance in early June, when ATVI tested $40. Source: madamF / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsATVI stock last traded above $80 in September 2018, hitting an all-time high of $84.68 before collapsing to $47 by the end of the year. In 2019, ATVI stock has stuck to a 20-dollar range between $40 and $60.Is Activision Blizzard stock headed back down to $40 or can it break out to a new all-time high in 2020?Here are my ideas on both sides of the argument. Activision Blizzard Stock is Headed to an All-Time HighThe video-game company reported reasonably solid earnings in early November that included net bookings of $1.21 billion, $40 million higher than analysts' average estimate. However,the company forecast just $2.65 billion of net bookings in the fourth quarter, shy of analysts' average estimate, so Activision Blizzard stock lost its momentum. * 9 Tech Stocks You Wish You'd Bought During 2019 ATVI stock has gone sideways ever since. In a statement released in conjunction with the company's Q3 results, CEO Bobby Kotick was enthusiastic about some of its video-game franchises."Recent launches have enabled significant growth in the size of our audiences for our Call of Duty® and World of Warcraft® franchises," Kotick said. "As we introduce mobile and free-to-play games based on our franchises we believe we can increase audience size, engagement and monetization. With a strong content pipeline and momentum in mobile, esports and advertising… we will remain a leader in connecting and engaging the world through epic entertainment," he added.In January 2020, Activision will launch its Call of Duty league. A total of 12 franchise owners paid at least $25 million in franchise fees to be a part of the new esports league. That's a cool $300 million for ATVI before a game's been played.Call of Duty is the second league launched by Activision. On Oct. 6, Activision held the Overwatch League's Grand Finals, the end of a very successful second season that featured the addition of eight franchise owners, bringing the total number of teams to 20. In August, I suggested that investors buy Activision Blizzard stock in the low $40s. At the time, it was trading slightly above $50. It's never fallen below $50 in the three months since. Given the potential of its esports business, not to mention its free-to-play mobile games, I'm not sure it's going to fall back into the $40s without some bad news.Therefore, investors who view ATVI's glass as half full, as Kotick does, might want to buy some Activision Blizzard stock at current prices and hold some cash in reserve in case it drops back into the $40s.In the absence of anything unforeseen, I like its chances of maintaining its momentum into 2020. Activision Blizzard Stock Is Bound to FallThere is optimism about the sector heading into 2020 because both Xbox and Playstation are bringing out new consoles next year. That will result in a surge of video-game sales as players opt for the latest and greatest console hardware.That said, it's impossible to ignore the fact that Activision's total net revenues for the first nine months of 2019 were $4.5 billion, 12% lower than in the same quarter a year earlier. On the bottom line, it had net income of $1.31 billion through Q3, 6.4% lower than during the same period a year earlier.Activision Blizzard stock had been in a lull until the fall when ATVI came alive in anticipation of the new consoles. However, Xbox won't be launched until November 2020. The same goes for the next generation of Playstation. So the consoles won't boost ATVI's revenues until Q4 of 2020 at the earliest, leaving esports and mobile games to carry the load until then. The odds of a bad-news catalyst emerging over the next four quarters is high. Therefore, there's an excellent chance of Activision Blizzard stock undergoing a correction over the next 12 months.It very well could fall back into the $40s in 2020. The Bottom Line on Activision Blizzard Stock While I think ATVI stock is worth holding for the long-term, I think the next 12 months could be very bumpy, while the shares could remain in a $40-$60 range.Can ATVI ever get to $80? Yes.Can it get to $80 in 2020? Probably not. That's more likely to occur in 2021. In the meantime, as I said in August, "If ATVI stock drops into the mid-$40s, I'd be buying by the boatload." At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Tech Stocks You Wish You'd Bought During 2019 * 5 Under-the-Radar Marijuana Stocks With Over 100% Upside * Watch These 5 STARS Stocks as They Change the Future The post Can Activision Blizzard Stock Get Back to $80 in 2020? appeared first on InvestorPlace.
Call of Duty®: Modern Warfare® Season One, featuring the new Battle Pass as well as the largest free content offering in Call of Duty history, is available now. Starting today with Season One, players across all platforms can jump in together to play new multiplayer maps, modes, co-op experiences, in-game events and more. In addition, the new Modern Warfare Battle Pass System gives players more ways to customize their experience by earning new content, including base weapons, weapon blueprints, weapon charms, and other vanity items just by playing the game.
Moody's Investors Service ("Moody's") downgraded Playtika Holding Corp.'s ("Playtika") Corporate Family Rating (CFR) to B1 from Ba3 and also downgraded its Probability of Default Rating (PDR) to B1-PD from Ba3-PD in connection with revised terms for the company's proposed $2.5 billion first lien term loan B. Elevated pricing for the term loan and increased original issue discount and transaction costs are expected to increase the company's pro forma interest expense by $50 million annually and reduce opening cash balances by approximately $37 million. The resulting reduction in free cash flow and opening liquidity reduces Playtika's expected financial flexibility over the next 12-18 months as the company executes on its M&A driven growth strategy and debt repayment plans.
Nintendo's (OTC: NTDOY ) Switch gaming console was among the hottest items this Black Friday, thanks to a highly-publicized deal and the nearing cycle end for its competitors. What Happened Nintendo stock ...
Today we're going to take a look at the well-established Activision Blizzard, Inc. (NASDAQ:ATVI). The company's stock...
Americans??? confidence is dwindling as evident from the soft data for November. However, holiday shopping is shaping up well and make these ETFs and stocks great buys.
Activision Blizzard (NASDAQ:ATVI) is one of the most important developers and publishers of interactive entertainment. After being a darling among investors from 2014 to the last quarter of 2018, over the past 12 months, ATVI stock is up only about 8%.Source: madamF / Shutterstock.com On Nov. 7, Activision Blizzard stock announced Q3 financial results. Now that the earnings season is behind us, many investors are wondering if ATVI stock can end the year on a much higher price. * 7 Retail ETFs That Can't Wait for the Holidays In the coming weeks, I do not expect Activision Blizzard shares to make a strong move up. Let's take a deeper dive to see why it may take at least another quarterly result to push ATVI stock higher.InvestorPlace - Stock Market News, Stock Advice & Trading Tips ATVI Stock's Q3 Results Got Mixed ReceptionActivision Blizzard holds the keys to some of the biggest video game franchises. It is also one of the largest gaming companies globally in terms of revenue and market cap. The company operates through three main segments: * Activision Publishing, which produces franchises such as Call of Duty and focuses on console gaming; * Blizzard Entertainment, which produces franchises such as World of Warcraft and Overwatch and focuses on online PC games with an emphasis on subscription-based business models; and * King Digital Entertainment, which produces mobile games.When the group released financial results, it beat analyst expectations on both revenue and earnings. Yet the metrics were lower than those reported in Q3 last year.Net revenue came at $1.28 billion, compared to $1.51 billion for the third quarter of 2018. Earnings per diluted share were 38 cents, as compared with 42 cents for Q3 2018.However, Activision Blizzard's monthly active users (MAUs), one of the primary metrics used to analyze gaming companies, continued to slide. Management aims to achieve a high number of unique users who participate in ATVI's ecosystem at least once a month. For Q3, the number came at 345 million active users. Wall Street was not impressed.In general, Activision Blizzard stock price is highly sensitive to quarterly earnings and revenue performance. Since Nov. 7, it is down about 5%. Activision Blizzard Stock Faces Increased CompetitionThe poor performance of ATVI's MAU numbers is in fact an indication of the competitive forces in the industry. Globally, video gaming is expected to grow at 4.8% compounded annual growth rate (CAGR) to reach $90 billion by 2020.As a growth industry, gaming inevitably attracts competition that may also challenge the business models of companies like Activision Blizzard. For example, Fortnite, an apocalyptic survival video game developed and marketed by the privately held Epic Games, generated $2.4 billion in revenue last year, more than any single game in 2018. The free-to-play game has become a worldwide champion among gamers of all ages.In recent quarters, earnings of ATVI stock, as well as those of major industry players like Electronic Arts (NASDAQ:EA) and Take-Two Interactive (NASDAQ:TTWO), have suffered because of Fortnite's success. In October, ATVI shares were downgraded as Bernstein analyst Todd Juenger cut the price target for the stock from $43 to $41.Inevitably, the whole industry suffered on the day of the downgrade. Therefore, investors should appreciate that another similar downgrade of ATVI stock or any of its peers could happen again in the weeks to come.This is an industry where developers like Activision Blizzard live and die by the continued popularity of their titles and franchises. The company has to constantly renovate and update its offerings. Long-term investors may want to wait for Q4 results, expected in early February 2020, before committing any capital into ATVI stock.Unless the numbers and the 2020 guidance are exceptional at the time, investors may decide not to invest in the stock for several more weeks -- or even months. Short-Term Technical Analysis of ATVI StockDespite the broader market rally of 2019 which has pushed the prices of many tech stocks significantly higher, year-to-date, Activision Blizzard stock is up only around 16%. On the other hand, the stock price of Electronic Arts (NASDAQ:EA) is up 25% in 2019.ATVI stock's 52-week price range has been $57.52 (Sept. 12, 2019)-$39.85 (Feb. 11, 2019). Activision shares have spent most of September, October, and November in a tight range between $57.5 and $52.5. Currently, the shares are hovering around $53.Before long, I expect ATVI stock to break out of this current range, possibly to the downside, toward its 200-day moving average, a long-term trend-following technical indicator, which currently is at $48.47.If you already own ATVI stock, you might want to hold your position. However, within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3%-5% below the current price point.If you are an experienced investor in the options market, you may also consider using a covered call strategy with approximately a two-month time horizon. In that case, you may, for example, buy 100 shares of ATVI at a limit price of $53.73 (the closing price on Nov. 26) and, at the same time, sell a ATVI Jan 17 $52.5 call option, which currently trades at $3.The $52.5 option is slightly in-the-money, offering downside protection in case of volatility and a decline in Activision Blizzard stock. It would also enable you to participate in a potential up move in ATVI share price. This call option would stop trading on Jan. 17, 2019, and expire on Jan. 18. The Bottom Line on Activision Blizzard StockATVI stock price is in general affected by holiday season shopping numbers. A recent investment thesis by Andrew Ravan at Johns Hopkins University concludes that "Q4 is historically ATVI's strongest quarter - the holiday season brings in huge sales, as video games are bought on a large scale."Therefore, in the coming weeks, any trading update from either Activision Blizzard or any of its competitors would likely affect the price of ATVI stock.With its strong franchise focus, Activision Blizzard is an important company that is likely to weather the ebbs and flows of the industry. The rise of the digital gaming revolution is here to stay, and I believe the long-term fundamental story of ATVI stock is still intact.However, due to tough competition in the industry, Activision Blizzard is no longer a high growth stock. Therefore, long-term investors may want to re-visit their growth expectations. And they may regard any pull toward $50 or even $45 level as a good entry point.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Are Bargains Right Now * 7 Excellent Bank Stocks Worth an Investment * 4 Small-Cap, Big-Dividend Stocks The post Should Investors Consider Buying Activision Blizzard Stock in December? appeared first on InvestorPlace.
Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of June. At Insider Monkey, we follow nearly 750 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are […]
Electronic Arts (EA) and Firemonkeys Studio's licensing partnership with Formula 1 likely to enhance EA's gaming portfolio with the upcoming content updates on Real Racing 3.
With Black Friday just a few days away, it's a time to reflect on true American values: beating the living crap out of our fellow man so that we can save a few bucks on digital trinkets. In all seriousness, though, the kickoff to the holiday shopping season is big business. To take advantage of this time, you may want to load up your stockings with video game stocks to buy.While this season represents an opportunity for retailers to move into the black (hence the name), Black Friday is especially advantageous for video game stocks. One of the reasons is technical: several game developers experienced severe volatility late last year. And many of them have yet to recover, providing discounted entry points for prospective buyers.A second reason is timing. Leading game device developers are set to launch their next-generation consoles in 2020. Naturally, such a move would inspire other competitors to take note, releasing their own competing devices. And this almost ensures that we'll see deep discounts and bundled deals for Black Friday. Thus, 2019 could turn out to be a huge cash cow for video game stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFinally, this segment isn't just limited to nerds and computer geeks. Surprising to many, video games have become a cultural phenomenon. Today, it's weird if you don't play. * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities With these factors in mind, here are eight video game stocks to buy: Sony (SNE)Source: Sundry Photography / Shutterstock.com When it comes to consoles, nobody can touch Sony (NYSE:SNE) and its iconic PlayStation. Late last month, Sony announced that its current-gen PS4 has sold nearly 103 million units worldwide. With exclusive licensing and a massive content empire, the future looks bright for SNE stock.In addition, with the PS5 scheduled for release in 2020, Sony has a vested interest in churning out crazy deals for this year's Black Friday. At multiple retailers across the U.S., you can buy the PS4 Pro edition for $299.99 as a doorbuster deal. Ordinarily, you'd be paying $400, so this presents a significant savings opportunity, bolstering SNE stock this November.However, keep in mind that Sony is much more than a member of video game stocks. Its multi-varied business units, including its digital optics and entertainment division, have clearly resonated with investors. So far this year, SNE stock is up over 28%. Microsoft (MSFT)Source: Shutterstock Although no one likes coming in second place, with video game stocks, it's not such a bad gig. Just take a look at Microsoft (NASDAQ:MSFT). While video games are not the only reason why MSFT stock has skyrocketed under Satya Nadella's leadership, they certainly helped.Since its debut six years ago, the current-gen Xbox One has sold well more than 41 million units. This easily places the Xbox within the top 20 most-popular consoles in history. And while this figure won't compete with Sony, like its rival, MSFT stock is a multi-dimensional investment. Whether you want it as reliable exposure to video game stocks or as a software powerhouse, MSFT does it all. * 7 Top Stocks to Buy for 2020 Since Microsoft is also prepping for its next-gen console, the doorbusters this Black Friday are phenomenal. The latest edition Xbox One X will be sold at $150 off its regular retail price. Thus, keep a close eye on MSFT stock this holiday season. Nintendo (NTDOY)Source: Nintendo Among video game stocks, Nintendo (OTCMKTS:NTDOY) doesn't get as much attention as the top two players. That goes for NTDOY shares in the investment markets as well. However, I think folks are missing out. On a year-to-date basis, NTDOY stock is up a whopping 47%.Its Black Friday promotions should help keep that momentum alive. One of the main highlights for NTDOY stock is the underlying company's hybrid console Nintendo Switch. A handheld gaming device for those on the go, the Switch transitions to an in-home console seamlessly. The Switch doesn't take itself too seriously, which appeals to many gamers.Although the doorbusters this year aren't as jaw-dropping as Sony's or Microsoft's offerings, they're still compelling. Nintendo is focused on bundling: for instance, you can get a Switch with the ever-popular "Minecraft" game for $298 at Walmart (NYSE:WMT). Compare that to the regular retail price of $329. Activision Blizzard (ATVI)Source: Lauren Elisabeth / Shutterstock.com Of course, no discussion about video game stocks is complete without mentioning Activision Blizzard (NASDAQ:ATVI). One of the originators of the first-person shooter genre, Activision's Call of Duty franchise is permanently embedded in the gaming industry's fabric. Moreover, with its latest edition, "Call of Duty: Modern Warfare," the company has reinvigorated its flagship series. This couldn't come at a better time for ATVI stock.As I argued recently, a few years back, Activision lost the plot with its Call of Duty games. Rather than emphasizing its gritty - and sometimes controversial - narrative-driven campaign modes, the company shifted toward futuristic scenarios. However, when they returned to its World War II-themed roots, Activision achieved record-breaking sales. We're seeing similar engagement with "Modern Warfare," lifting my confidence toward ATVI stock. * 7 Strong Retail Stocks to Buy for the 2019 Holiday Season As you know, shares are struggling to gain traction from last year's steep losses. This year's doorbuster sales will help. With Modern Warfare's "C.O.D.E. Edition" available for $38 (retail is $60), ATVI stock is well-positioned to benefit. Electronic Arts (EA)Source: rafapress / Shutterstock.com Another key player among video game stocks to buy, Electronic Arts (NASDAQ:EA) is also struggling to gain traction this year. In the latter half of 2018, EA stock veritably crumbled. On a YTD basis, shares are now up nearly 27%. Still, that doesn't quite remove the bad taste from last year. However, Black Friday deals should help significantly.Among the driving forces of EA stock is the game developer's lucrative licensing deals. As a prime example, Electronic Arts released "Star Wars Jedi: Fallen Order" this month. Naturally, this coincides with Disney's (NYSE:DIS) upcoming Star Wars film, which is going to break all kinds of cinematic records.Furthermore, EA Sports is a huge revenue generator due to its popular Madden and FIFA series. Sure, the gameplay may get repetitive for some players, but they keep on buying: basically, EA has a monopoly on authentic sports licenses.Plus, the company has big price slashes for Black Friday. Thus, you don't want to give up on EA stock prematurely. Take-Two Interactive Software (TTWO)Source: Thomas Pajot / Shutterstock.com Similar to top development-based video game stocks, Take-Two Interactive Software (NASDAQ:TTWO) dropped substantially in the final calendar quarter of 2018. With gamers gravitating en masse toward cartoonish games like "Fortnite," TTWO stock lost some relevance. In addition, gamers' increased adoption of the mobile platform didn't help matters.However, with the record-breaking popularity of Activision's "Modern Warfare," sentiment may be returning favorably for TTWO stock. After all, the company has developed a reputation for gritty games, such as its controversial Grand Theft Auto series. Moreover, its Red Dead Redemption 2 has earned Take-Two new fans.But it's not just blood and guts that underlines TTWO stock. Instead, Take-Two has invested in lucrative licensing deals to develop popular NBA and World Wrestling Entertainment (NYSE:WWE) games. * 7 Retail ETFs That Can't Wait for the Holidays Finally, the game developer should experience a nice Black Friday boost. A key standout is "Red," which will be sold at $29.99. Amazon (AMZN)Source: Ioan Panaite / Shutterstock.com While there's no feeling quite like popping a cap in someone's hind end for a PlayStation, understandably, it's not everyone's cup of tea. While Black Friday is an American tradition, many consumers would rather do their shopping online. Besides, Cyber Monday is likewise a huge event for e-commerce giant Amazon (NASDAQ:AMZN) and AMZN stock.Rarely have I participated in Black Friday, and I'm certainly not going to wait outside in the cold for a video game. For such purposes, I have Amazon.com. And as you'd expect, the king of disrupters has some big deals planned. Thus, while it's not a video game company - its streaming service notwithstanding - Amazon plays a massive role in the distribution. Therefore, I've included AMZN stock on this list.Furthermore, a compelling component of the bull case is the equity's lack of momentum. Since early August of this year, AMZN stock has been subdued. However, I have a hard time believing this will continue much longer. GameStop (GME)Source: Shutterstock Due to the emergence of video game downloads and subscription services, demand for physical gaming discs subsided. With that, brick-and-mortar retailers that specialized in those physical games, like GameStop (NYSE:GME), suffered badly. Yet a few months back, Michael Burry from "The Big Short" fame forwarded the bullish argument for GME stock.You can read my take on his arguments and see if you agree or not. But specific to Black Friday, I believe speculative bulls have reason for confidence in GME stock.When it comes to Christmas gifts, the physical platform lends itself well to the season's festivities. After all, there's no way to gift wrap a digital subscription. Moreover, digital gifts are tacky, sending the message that you didn't think about them until the last minute.Finally, GameStop offers a way for people to buy used games for very cheap. Obviously, you can't download second-hand games. For gamers on a budget, GameStop offers a surprisingly valuable service, thereby bolstering GME stock.As of this writing, Josh Enomoto is long SNE stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post 8 Great Black Friday Deals for Video Game Stocks appeared first on InvestorPlace.
Take-Two (TTWO) is likely to benefit from portfolio strength with the launch of Sid Meier's Civilization VI despite intensifying competition.
Mythical Games is "a next-generation game technology studio specializing in digital ecosystems around player-owned economies."
After a terrible decline in the final calendar quarter of 2018, technically, Activision Blizzard (NASDAQ:ATVI) was bound for a comeback. Despite competition from less-expensive fare like Epic Games' "Fortnite," ATVI remains a brand to be reckoned with. Thus, I'm not surprised that Activision Blizzard stock is up into double-digit territory on a year-to-date basis.Source: Eric Broder Van Dyke/Shutterstock.com But the real question is whether ATVI stock can build off this momentum. Here, the video game maker's third quarter of 2019 earnings report offered a frustrating mix of answers and more questions. On the positive side, Activision delivered both a per-share profitability and revenue beat.Against a consensus target calling for earnings per share of 23 cents, actual EPS came in at 38 cents. For revenues, covering analysts forecasted $1.2 billion, while ATVI rang up $1.28 billion. This also beat the company's Q3 guidance of $1.11 billion. Theoretically, the results should have lifted Activision Blizzard stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, the markets took a dim view on the comparable metrics. For example, in Q3 2018, the company delivered EPS of 42 cents. Also, in the year-ago quarter, Activision rang up $1.51 billion in revenue, a significant 15% decline year-over-year. Understandably, ATVI stock tanked following the earnings results. * 7 Strong Retail Stocks to Buy for the 2019 Holiday Season To make matters worse, the game maker's monthly active user count has dipped noticeably over the past several quarters. Moreover, MAUs are declining across all the company's gaming divisions.It's a worrying narrative for Activision Blizzard stock because the underlying organization is already duking it out with rival Electronic Arts (NASDAQ:EA). Adding in relatively low-cost competitors like Epic Games saturates the market. Therefore, the Q3 results imply that Activision is bound for lower revenues.Still, I think patience is key for ATVI stock. Back to Basics for Activision Blizzard StockTo answer the first criticism about MAUs, the gaming industry is cyclical; that is, developers can't always churn out resounding hits every year. Subsequently, the lack of a fresh "World of Warcraft" title in 2019 has definitely hurt active user engagement metrics.However, management recognizes the importance of "Warcraft" to the organization, so assuming that MAUs will continue to decline is a risk in itself. Plus, Activision's mobile division will start churning out new titles, competing more effectively against Zynga (NASDAQ:ZNGA). Coincidentally, ZNGA looks a bit stretched.But my enthusiasm for ATVI stock comes down to management learning key lessons. A few years back, Activision's flagship franchise, "Call of Duty," started to lose its character. With titles like "Advanced Warfare" and "Infinite Warfare," CoD games transitioned from gritty, realistic depictions of combat to almost cartoonish imaginations of combat set well into the future.The gameplay was still your typical exciting, action-packed first-person shooter fare. However, CoD has always emphasized realism. On the other hand, "Advanced Warfare" and "Infinite Warfare" were clearly fantasy games, with the sales drop providing confirmation.However, in recent years, management has shifted its focus back to what its consumers want: gritty violence. Sure enough, sales of its World War II-themed CoD title in December 2017 produced enviable sales results.Now, the latest CoD game, "Modern Warfare," has broken several records, and it's easy to see why. Featuring a realistic single-player campaign that is literally ripped from today's headlines, CoD is no longer a video game. Instead, it's like participating in a documentary. In fact,"Modern Warfare" is so realistic in its story-telling that the Russians have complained about their portrayal.If that's not a bullish signal for Activision Blizzard stock, I don't know what is. Wait for the Transition to Play OutAdmittedly, this longer-term case for ATVI stock will take some time to play out. And yes, the metrics for right now look disappointing, resulting in share price volatility.But the bearish argument assumes that the disappointing trends we saw in Q3 will continue to cloud Activision Blizzard stock. If management showed no signs of adapting to the challenges, I wouldn't disagree. However, the company's strategy has changed. Rather than chasing fads, they're going with what has always worked for the organization.Further, ATVI has the potential to lever its various divisions more effectively. For instance, its flagship studios can focus energy and resources to creating compelling blockbusters like "Modern Warfare" now that they've realized not to deviate from their magic formula. And the company's mobile division can cater gameplay to reflect the addictive, fast-paced style reminiscent of "Fortnite."Again, this will take time to play out. But the pieces and the strategy are finally aligned, making Activision Blizzard stock a strong but underappreciated bet.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best High-Growth Stocks to Buy for Young Investors * 7 Stocks to Buy With Great Charts * 7 Troubled Dividend Stocks With Yields Too Good to Be True The post Activision Blizzard Stock Gets the Strategy It Deserves appeared first on InvestorPlace.
Electronic Arts (EA) likely to benefit from portfolio strength with the latest release of Star Wars Jedi: Fallen Order amid intensifying competition.