|Bid||46.71 x 800|
|Ask||47.00 x 2900|
|Day's Range||46.41 - 47.09|
|52 Week Range||43.71 - 84.68|
|Beta (3Y Monthly)||1.15|
|PE Ratio (TTM)||62.03|
|Earnings Date||Feb 12, 2019|
|Forward Dividend & Yield||0.34 (0.72%)|
|1y Target Est||64.58|
# Activision Blizzard Inc ### NASDAQ/NGS:ATVI View full report here! ## Summary * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is extremely low for ATVI with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting ATVI. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $6.07 billion over the last one-month into ETFs that hold ATVI are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to firstname.lastname@example.org. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The fact that Activision Blizzard's game franchise "Destiny" can go "from hero to zero in four years" is a worrisome sign for the video game industry, an analyst said.
NEW YORK, Jan. 16, 2019 -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Activision Blizzard,.
Market historians will likely remember the 2010s as a pivotal decade for esports. Although gamers can trace its origins as far back as 1972, it took advances in the internet to make esports a global phenomenon. A myriad of tech companies played a role in developing and supporting these games, paving the way in making esports what it is today. By understanding esports and all of the stocks that power it, investors can profit from this growing phenomenon. ### What Is Esports? Put simply, esports is competitive video game playing. Competitions usually take place in multiplayer and team competitions, enabled by advances in streaming and live venues that help bring together tens of millions of gamers with similar interests. It has become so popular that the International Olympic Committee (IOC) has even looked at it as a possible Olympic sport. The IOC has so far rejected this idea. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Esports Stocks to Buy Despite the IOC's sentiments, this has become a favorite gamer and spectator event. Among esports stocks, Activision Blizzard (NASDAQ:ATVI) has stood out, most recently with last year's deal with Disney (NYSE:DIS) to broadcast the Overwatch League on ESPN and Disney XD digital cable and satellite television. Naturally, investors also look to peers such as Electronic Arts (NASDAQ:EA), Take-Two Interactive (NASDAQ:TTWO), and now, China-based Tencent (OTCMKTS:TCEHY). Tencent operates in many different fields. However, its gaming division alone dwarfs its largest American gaming peers. * 10 Growth Stocks With the Future Written All Over Them Of these, I would recommend EA stock at this time. It trades at a forward PE ratio of about 17.3x. Also, profit growth appears set to take off again. Analysts predict an 11.8% profit increase this year, and an average annual rate of 13.1% over the next five years. EA has lagged Activision's esports promotion efforts. However, EA games such as Battlefield, Madden NFL, and FIFA have become popular. Its FIFA 18 Global Series attracted more than 20 million competitors alone. Between its low multiple and prominent games, EA is in a position to profit investors and become an up-and-coming player in the esports arena. ### Cadre of Stocks in Esports Ecosystem To profit further, investors also need to consider the non-gaming stocks that make esports possible. Given the computing power of PCs, gamers consider these systems vastly superior to gaming consoles for speed. Players also need the fastest, most-powerful memory chips available. This need benefits Micron (NASDAQ:MU). The gaming industry will always purchase its fastest and most-expensive chips regardless of its demand situation. Microsoft (NASDAQ:MSFT) has also become a vital esports stock. While its Xbox gaming console is one path into the industry, esports games players prefer to play on PCs. That's why Microsoft's Windows software plays a critical role in the gaming market despite the PC's overall decline in importance elsewhere. Meanwhile, headset maker Turtle Beach (NASDAQ:HEAR) has found its niche by making its headsets the gaming accessory of choice. Still, in this market, I see Nvidia (NASDAQ:NVDA) as the hardware stock of choice. Today, most investors think of Nvidia for artificial intelligence (AI), self-driving cars, and virtual reality (VR). However, some might forget that Nvidia got its start as a chip company focused on gaming. Despite the new niches, gaming remains a vital part of its business. Like with MSFT and MU, gaming provides a foot in the PC market that will persist despite the PC's falling popularity. * 5 Dow Jones Stocks to Sell Before Things Get Uglier Thanks to a chip glut and a tech-stock selloff in the fall of 2018, NVDA stock has again become a bargain. In this latest swoon, its price-to-earnings (PE) fell to about 21x. However, after this fiscal year, profit growth should resume. Wall Street expects average profit growth of 15.1% a year over the next five years. Bolstered by AI, VR, and of course, esports, NVDA should become the premier chip stock over the next few years. Finally, investors should also remember that the ATVI deal makes Disney a "gaming stock" in a technical sense. Its forward PE multiple stands at 15.1x. Also, profit growth bolstered by a move into streaming, and now, gaming should help the media company recover. ### The Bottom Line on Esports Stocks to Buy Esports has not only become a favorite pastime, but it has also benefited equities across the tech landscape. This activity helps gaming-related equities such as TTWO stock. However, investors need to also look at companies that enable the games. One such stock is Nvidia, the maker of the chips that makes gaming possible. As well, due to its deal with Activision, one can also argue that a media company such as Disney has become an esports stock. Like with gaming, investing in esports stock will take both skill and strategic thinking. However, by picking the right equities, traders can achieve the goal of making investing a winning esport in itself. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post What Is Esports And Why Should Investors Care About Gaming? appeared first on InvestorPlace.
Activision Blizzard (ATVI) closed at $46.84 in the latest trading session, marking a -0.95% move from the prior day.
Activision Blizzard (ATVI), a $38.7 billion interactive content and service developer, recently lost 9% of its share price after transfering publishing rights of the futuristic action game Destiny to the gaming studio Bungie. Warning! GuruFocus has detected 2 Warning Sign with ATVI. The split will mark the end of the eighth year of a 10-year contract established in 2010 between Activision and Bungie to develop the Destiny game.
# Activision Blizzard Inc ### NASDAQ/NGS:ATVI View full report here! ## Summary * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is extremely low for ATVI with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting ATVI. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. ETFs that hold ATVI had net inflows of $9.65 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
"Destiny" is one of the most popular first-person shooter games in the industry, and Vicarious Visions had been working on the PC version of "Destiny 2" with Bungie. It was a more mature title for Vicarious Visions.
The quarterly report at Macy's sent aftershocks through the retail industry, but somehow Bed Bath & Beyond avoided the sting.
[Editor's note: This story was originally published in November 2018. It has since been updated and republished. While the author's opinions may have shifted, the longer-trend for video game stocks remains.] If you're looking for an investment sector that is very likely to rise higher, video game stocks are your ticket. The concept of the video game has evolved from nerdy niche to mass mainstream infiltration. Still, powerful fundamental tailwinds haven't prevented video game stocks from absorbing huge losses. Indeed, anywhere you look, the major (and minor) indices are flashing red. The broader markets finished 2018 down 6.2%, and our own Dana Blankenhorn, in November 2018, stated bluntly "we're already in a bear market." Any contrarian analyst would be hard-pressed debating Blankenhorn on this issue as the volatility persists into 2019. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I'm certainly not going to attempt it, especially if I'm looking at esports and gaming stocks. The video game as an investment vehicle is a platform that has profited many investors handsomely over the years. Unfortunately, the declines in video games and esports stocks over the past year have forced everyone to rethink their assessments. I can't deny the obvious: This is a time when all market participants should strongly consider protective measures. We have many factors that are completely unrelated to video games but could end up roiling video game stocks. However, I'd also caution against overreactions. Recall that the Dow Jones lost double digits between late January and early February of 2018 … * InvestorPlace Roundup: The Hottest Stocks in the Market Today The point is to protect yourself from this violent storm, but also to realize that all storms eventually fade away, producing excellent deals only in hindsight. If you've got the nerve, here are seven video game stocks on serious discount. Source: Dalvenjah via Flickr ### Sony (SNE) When you think about the modern video game, you immediately think about Sony (NYSE:SNE). Admittedly, SNE stock has become a running joke within consumer-electronics circles for the underlying firm's other endeavors. For instance, its smartphone is nowhere near as popular as Apple's (NASDAQ:AAPL) iPhone, and it once ran a computer-monitor business. But don't ever question SNE stock for its part in advancing the video game to the mainstream. Its PlayStation console resonates deeply with consumers, and better yet, it keeps improving. Just a few days ago, Sony announced during the Consumer Electronics Show (CES) that the current-generation PlayStation 4 hit 91.6 million unit sales. More impressively, this tally occurred over roughly a five-year lifespan. Of course, the markets don't typically respond to past achievements. What makes SNE stock so compelling for the video game industry is corporate synergy. Make fun of Sony all you want, you can't deny its vast entertainment portfolio. Management can easily leverage this for exclusive titles, which they do frequently for marquee brands. Source: Shutterstock ### Microsoft (MSFT) Every great organization has an equally great competitor. In the war of supremacy for the video game, we have two top console-makers: Sony and Microsoft (NASDAQ:MSFT). The rivalry between the two tech giants is no joke for many gaming enthusiasts. Microsoft stopped reporting sales figures for its Xbox console, which understandably drew snide snickering, but estimates put it around the 40 million mark. Based on this, Sony is vastly outpacing Microsoft in the console wars. But that hasn't stopped MSFT stock from making significant gains in the markets. Part of the reason is that in terms of graphics and gameplay capabilities, Microsoft has largely gone toe-to-toe with Sony. Additionally, the house that Bill Gates built features its own batch of attractive exclusive titles, including the ultra-popular "Halo" series. Naturally, this has encouraged long-term investors to pile in on MSFT stock. * 10 Companies That Could Post Decelerating Profits And while I'm a Sony guy, I think Microsoft offers better overall stability. Along with its video-game business, it has a virtual lockdown on PC operating systems and various pieces of professional software. Plus, MSFT stock pays a much higher dividend, which isn't something to ignore at this juncture. Source: Shutterstock ### Nintendo (NTDOY) In my opinion, and those of fellow gamers, the architect of today's video game is Nintendo (OTCMKTS:NTDOY). However, other video game stocks have captured investors' attention. Moreover, as a Japanese over-the-counter name, NTDOY stock doesn't always generate positive news. That has proven especially true in 2018. Last year, NTDOY stock returned handsome monetary rewards for shareholders thanks to the Nintendo Switch. This spectacular console is actually a hybrid device. Nintendo designed the Switch primarily for home usage, but you can just as easily take it on the road. However, great news becomes old news quickly, and shares faltered. Still, the scope of the damage seems excessive. Over the past year, NTDOY stock has dropped a staggering 30%. While further losses are not out of the question due to the overall market panic, the bears are overlooking the company's long-reaching brands. For instance, the "Mario Bros." franchise is gaming gold, which Nintendo can leverage for profitable synergies. Source: Shutterstock ### Electronic Arts (EA) For anybody who has picked up a video game in the last decade, chances are, you fed the Electronic Arts (NASDAQ:EA) cash cow. From developing games for the Commodore Amiga -- does anybody remember that? -- to driving the latest innovations in esports, EA stock is a mainstay within the industry. That said, video game stocks have incurred horrific losses, and Electronic Arts was not spared in any way, shape or form. Since July 25, EA stock has hemorrhaged more than 43% of market value. Some of that was due to the poor outlook given in its first-quarter fiscal 2018 earnings report. But later losses stemmed from internal issues, such as the delayed launch for its heavily-anticipated video game Battlefield V. I understand why investors are now hesitant on EA stock. A few months ago, I provided my analysis on the company's extreme volatility. That said, my ultimate take is that Electronic Arts suffers from fixable problems. * Mizuho: 7 Long-Term Value Stocks to Buy Now Moreover, they leverage an enviable sports-licensing franchise. No matter what happens, throngs of gamers always eagerly await the latest iteration in the Madden or FIFA series. On the surface, such fandom seems irrational because the changes are minute. Still, the consumers are shelling out big bucks every year, so who am I to judge? Source: Gamevil Inc. via Flickr ### Activision Blizzard (ATVI) One of the biggest reasons why the video game industry has captured mainstream attention is the proliferation of the online shooter genre. And in this genre, no one does it better than Activision Blizzard (NASDAQ:ATVI). Over the last few years, ATVI stock has skyrocketed based largely on its Call of Duty franchise. Rather than being shunned by the real heroes in uniform, our military forces embrace these games. Earlier last year, Activision announced that it donated more than $100,000 worth of Call of Duty games to the United Service Organizations, or USO. However, like Electronic Arts, ATVI stock incurred heavy losses in the markets. Since the close of Oct. 1, Activision shares have tanked 40%. A major culprit is fierce competition, particularly from Epic Games' Fortnite. In the long-term, though, ATVI stock looks very intriguing. Over a year-and-a-half of market gains was wiped out in less than two months' time. That's a little bit over the top considering that the company levers one of the most popular franchises among video stocks. Source: Shutterstock ### Nvidia (NVDA) Semiconductor firms like Nvidia (NASDAQ:NVDA) started to light up the markets in 2016, and that momentum continued into last year. Unfortunately, we learned a physics lesson with NVDA stock: what goes up must come down. And shares are doing exactly that. What appeared to be a promising start for 2018 turned into a veritable nightmare. Between the January opener and the end of September, NVDA stock gained nearly 44%. Since the beginning of October, however, the company has tumbled over 48%, finishing the year down 31%. As a leader in advanced technologies, Nvidia took the brunt of the sector fallout. The geopolitical wrangling between the U.S. and China isn't helping matters. Plus, the severe plummeting in bitcoin prices is likely to negatively impact its crypto-mining-specific graphics processing units, or GPUs. * 7 Stocks to Buy That Are Run By Billionaires Nevertheless, I really like NVDA stock, especially at these prices. I'm not the only one, as notorious short-sellers Citron Research just recently reversed their bearish take on the company. While you shouldn't rush in simply based on one expert opinion, Nvidia offers exposure to multiple next-gen businesses. I doubt that NVDA will stay deflated for long. Source: Shutterstock ### GameStop (GME) In following with my usual routine of sticking speculative names in the back, I bring to you GameStop (NYSE:GME). GME stock is easily one of the riskiest investments among video game stocks. The company pays out a near-10% dividend, which tells you all you need to know. The other reason that GME stock is down -- aside from all the terrible factors that slammed valuations -- is related to its PR crisis. Many gamers hate GameStop because the retailer rips off customers who are looking to trade in their games and paraphernalia. That's true, but at the same time, you can't have it both ways. The reason why other gamers love GameStop is due to their extensive library of preowned products. In my opinion, it's far superior to online sales and subscription-based services due to its easy return policy: if you don't like a particular video game, just return it. This return policy is a major but underappreciated benefit for GME stock because many gamers are young. They (or their parents) may not have the funds for subscription services. GameStop gives these customers better pricing and superior flexibility. As of this writing, Josh Enomoto was long SNE and bitcoin. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post 7 Video Game Stocks on Steep Discount appeared first on InvestorPlace.
U.S. stock futures are trading lower this morning amid weak China trade data and continued global slowdown worries. Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.77% and S&P 500 futures are lower by 0.73%. Nasdaq-100 futures have shed 0.90%. In the options pits, call volume won the day as overall volumes lifted on the day. Specifically, about 17.9 million calls and 16.1 million puts changed hands on the session. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Fear's return was felt at the CBOE, with the single-session equity put/call volume ratio rising to 0.77 - a three week high. Meanwhile, the 10-day moving average ticked higher to 0.63. Here were three stocks atop the most-actives list. Activision Blizzard (NASDAQ:ATVI) shares fell 9.4% after announcing a split with game developer Bungie. General Motors (NYSE:GM) soared on upbeat earnings guidance. Finally, Tilray (NASDAQ:TLRY) rocketed higher after their largest shareholder revealed they won't be selling shares this week when the lock-up period expires. Let's take a closer look: ### Activision Blizzard (ATVI) Last week's recovery in Activision shares came to a crashing end on Friday after the video game giant announced it would end its partnership with Bungie, developer of the hit game Destiny. * 10 A-Rated Stocks the Smart Money Is Piling Into By day's end, ATVI stock was down over 9% amid heavy selling pressure. The price plunge returned Activision to crucial support near its 52-week low and has the stock knocking on the door of another potential breakdown. A host of analysts cut their price targets in the wake of the news. On the options trading front, calls outpaced puts on the session despite the outsized price drop. Total activity ballooned to 998% of the average daily volume, with 140,816 total contracts traded. 65% of the trading came from call options. Implied volatility held steady at 50%, placing it at the 52nd percentile of its one-year range. Premiums are pricing in daily moves of $1.46 or 3.1%. ### General Motors (GM) General Motors shares were flying high Friday after the automaker provided positive earnings guidance. Investors enthusiastically bid GM stock up by 7.05% amid heavy volume. In the company's statement, they said their 2018 earnings should exceed previous estimates provided in October. Furthermore, they offered better-than-expected projections for 2019 including adjusted earnings per share between $6.50 and $7. With Friday's rally, GM is now close to departing the whippy price range it has been stuck in for the past three months. On the options trading front, calls won the day by a wide margin. Total activity increased to 712% of the average daily volume, with 255,222 total contracts traded. Calls accounted for 68% of the day's take. Uncertainty melted alongside Friday's rally, driving implied volatility down to 35%, or the 52nd percentile of its one-year range. Premiums are now pricing in daily moves of 82 cents or 2.2%. ### Tilray (TLRY) Investors worrying about the expiration of Tilray's lock-up period breathed a sigh of relief on Friday after Privateer Holdings said it plans to maintain its large position. As the largest shareholder of TLRY stock, had the fund decided to liquidate its position it undoubtedly would have exerted heavy pressure on the Cannabis company's share price. TLRY jumped 19.4% on the news, climbing back above its 50-day moving average for the first time since last November. On the options trading front, calls were hot alongside the price jump. Total activity ramped to 409% of the average daily volume, with 151,653 total contracts traded. Calls contributed 68% of the session's tally. Implied volatility jumped to 143%, reflecting increased uncertainty. As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Monday's Vital Data: Activision, General Motors and Tilray appeared first on InvestorPlace.
Friday's lackluster start didn't last until the closing bell rang. Though the S&P 500 still logged its first loss in six sessions on the last day of last week, the bulls pared the loss back to a mere 0.01%. Plus, the sellers never really came out in numbers. General Motors (NYSE:GM) did its part to keep the broad market out of the red, gaining 7.1% after dishing out a 2019 profit outlook that exceeded expectations. Netflix (NASDAQ:NFLX) chipped in as well, advancing 4% after UBS upgraded the stock to a "Buy," explaining investors now have more clarity about its challenges. But, there were just a few too many names like Activision Blizzard (NASDAQ:ATVI) weighing stocks down. Although advancers outnumbers decliners on Friday, the decliners dished out big dips like the 9.4% tumble ATVI took after it was announced it was parting ways with one of its game development partners. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The weekend should clean the mental slate for most tickers, though the stock charts of Newmont Mining (NYSE:NEM), Masco (NYSE:MAS) and O'Reilly Automotive (NASDAQ:ORLY) are already largely locked into a pattern that's leading into something. ### Masco (MAS) The last time we looked at Masco back on Nov. 29, shares were knocking on the door of a break above technical resistance around $32. It ended up following through just a couple of days later, but to no avail. Shares reversed course the day after that, and spent the following month falling back to its previous low around $27. * 7 Stocks at Risk of the Global Smartphone Slowdown That pullback ended up turning into a double-bottom though, and since the MAS has fought its way back above $27. The newest hurdle now stands just above $33, where Masco shares peaked the one day more than a month ago the ceiling at $27 was breached. Masco shares haven't been able to break above that ceiling either, and another one's since moved into the picture. If that resistance can be cleared, however, MAS could soar. Click to Enlarge • As was noted, the new ceiling is around $33, where shares peaked in December and again so far this year. • Also coming into the picture is the 100-day moving average line, plotted in gray. MAS neared that line last week, but traders are cautious about pushing past it. • There has been a great deal of volume behind the recent upturn, however, suggesting there are buyers ready and willing to step in if it can break above the last technical resistance level. ### Newmont Mining (NEM) It has got more to do with rising gold prices than with the miner itself. But, for traders looking for a good way to plug into what's quickly becoming an impressive rally, Newmont Mining may be the best of the best. The momentum is strong, and there's only one more hurdle to clear. What a hurdle it is though. Click to Enlarge • The hurdle in question is the 200-day moving average line, plotted in white on both stock charts. It was tested with Friday's high, but NEM didn't push above it. • Guiding Newmont shares to and possibly beyond their 200-day average is a set of well-established support and resistance lines, plotted in yellow on both stock charts. • Whatever support isn't being provided by the lower edge of the rising trading range, the stock's other key moving average lines are offering. The purple 50-day average line has been especially helpful. ### O'Reilly Automotive (ORLY) Finally, it's suspicious just how much O'Reilly Automotive has failed to participate in the recent market recovery. More than that though, a closer examination of the stock's undertow suggests a pullback is brewing. One misstep could easily put a profit-tracking chain reaction in place. Click to Enlarge • With just a quick glance, ORLY looks no worse than stagnant, trapped by converging support and resistance lines plotted in yellow on both stock charts. But, we just saw bearish crosses of key moving averages. • The selling volume has also been heavy. It's been so heavy, in fact, that the weekly chart's Chaikin line has been below the zero mark for weeks. Though O'Reilly are holding their ground, a great number of traders are getting out. • The trigger for any selling avalanche will most likely come in the form of a break below the lower edge of the recent support line, current at $331. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 3 Big Stock Charts for Monday: Masco, Newmont Mining and O'Reilly Automotive appeared first on InvestorPlace.
Once among the highest-flying stocks in the market, shares of video game publishers Electronic Arts (NASDAQ:EA), Take Two Interactive (NASDAQ:TTWO), and Activision (NASDAQ:ATVI) have all fallen off a cliff over the past several months. All three stocks peaked in mid-to-late 2018. Since peaking, TTWO stock has dropped 20%, while both EA stock and ATVI stock have fallen a whopping 40%. Across the board, the bull thesis looks compelling for video game stocks here. Near-term headwinds blown by disappointing back-half 2018 sales are legitimate but overstated and have been overpriced into these stocks. The much broader and more powerful multi-year trends at play here, including deeper digital adoption, a steady rise in micro-transactions, and the mainstream emergence of eSports, remain favorable. To be sure, those near-term headwinds will inevitably phase out. They will be replaced by favorable multi-year trends. This transition will ultimately push video game stocks way higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This is especially true for EA stock. Electronic Arts stock has dropped 40% since July. Since then, there's been some negative holiday sales reads regarding two of the company's headline titles, Battlefield and FIFA. Meanwhile, there's some concern about margins getting hit next year due to licensing fees related to a new Star Wars game. But, again, these are all near-term headwinds. In the big picture, thanks to a robust content portfolio, the games maker has broad exposure to the three important multi-year trends in the video game industry. That broad exposure will ultimately boost EA stock the medium-to-long term as the more immediate headwinds are replaced by favorable multi-year growth trends. ### Near-Term Headwinds Are Legitimate To be sure, the headwinds weighing on EA stock are very real. The consensus read from analysts is that gamers have not engaged with FIFA 19 ever since its debut in late 2018, despite being the number two video game sold globally in 2018. Other titles have been weak, too. A glance at the list of top video games from 2018 will show you that games from Activision and Take-Two dominated the market. Both companies had headline launches in their core franchises, Call of Duty and Red Dead Redemption, respectively. * Morgan Stanley: 7 Risky Stocks to Sell Now Electronic Arts didn't really have a big game last year. Outside of FIFA 19, EA's showing in 2018 was relatively weak. That contributed to a down-guide in late October, and that guidance has weighed on shares ever since. ### Long-Term Tailwinds Are Far More Powerful Weak sales performance in the back half of 2018 is a very small deal in the big picture for EA stock. In that big picture, there are three multi-year trends in the video game industry that matter: * Increased digital download adoption and the eventual birth of video game streaming. * Continued growth in video game micro-transactions and live services. * Mainstream emergence and widespread adoption of eSports. Thanks to certain growth initiatives and a robust content portfolio that includes franchises like Battlefield, FIFA, Madden, Star Wars, and Sims, EA has broad and favorable exposure to all three of these growth trends. For example: * Through Project Atlas, EA is arguably the leader in pioneering what the company calls "cloud gaming", which is essentially video game streaming (being able to play a video game through a streaming service, not through a console). * Many of EA's games lend themselves to micro-transactions. These micro-transactions aren't going anywhere anytime soon. While Battlefield V launched without micro-transactions, rumors are swirling that a premium Battlefield V currency is coming in January. The broad implication is that the era of micro-transactions will live on for EA. * EA's titles lend themselves well to competitive gaming. As such, EA hosts multiple eSports events, including the FIFA eWorld Cup, Madden NFL Championships, and NHL Gaming World Championships. EA is also plunging into the mobile eSports world with Command & Conquer: Rivals. Overall, the big picture fundamentals supporting EA stock remain favorable. While there are near-term headwinds related to sales strength in the back half of 2018, those headwinds are ephemeral. They will leave just as quickly as they arrived. * 7 Stocks at Risk of the Global Smartphone Slowdown As noted above, the important things will stay in the picture. EA will continue to push forward on cloud gaming and benefit from digital downloads. The company will continue to earn higher revenues and grow margins through micro-transactions. And, Electronic Arts will also continue to expand its eSports presence. All three of those things are positive long term developments that will ultimately drive EA stock higher. ### The Price Is Right At current levels, the price is right to buy EA stock. High margins, strong cash flows, a wide content moat with enduring demand, and favorable multi-year trends have kept EA stock trading at a 23x forward earnings multiple over the past five years. However, the past 12 months have seen the forward earnings multiple spend most of the time above 25x. Today, EA stock's forward earnings multiple is below 20x. That's an unnecessarily big discount. Margins are still high. Cash flows are still strong. The content moat is still wide. And the multi-year growth trends remain favorable. Thus, a rebound to a 25x forward multiple seems reasonable. Alongside continued earnings growth, that should power big gains in Electronic Arts stock. ### Bottom Line on EA Stock EA stock has been unnecessarily beaten up on overstated near-term headwinds that will inevitably fade from the picture within the next few months. As they do, Electronic Arts stock should rebound, given strong longer-term fundamentals. This rebound will be powered by both earnings growth and multiple expansion, giving the stock double firepower to head way higher in 2019. As of this writing, Luke Lango was long EA, TTWO, and ATVI. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Positive Secular Trends Imply Big Upside For Electronic Arts Stock appeared first on InvestorPlace.
Benzinga has featured looks at many investor favorite stocks over the past week. Bullish calls included video streaming and electric vehicle leaders. Federal Reserve Chair Jerome Powell's dovish comments that seemed to signal a weaker dollar.
For the first seven trading days of 2019, the S&P 500 has a gain of nearly 3.6%, the best since 2003. This good start could indicate a year of gains.
Stocks that moved substantially or traded heavily Friday: Activision Blizzard Inc., down $4.81 to $46.54 The video game publisher announced that its eight-year partnership with game developer Bungie was ...
NEW YORK , Jan. 11, 2019 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Activision Blizzard, Inc. ("Activision" or the "Company") (NASDAQ: ATVI). ...
At the close, Activision was down 9.4% to $46.54 a share. Nicole Webb, a financial adviser at Wealth Enhancement Group, sat down with TheStreet to talk about earnings and how investors can prepare their portfolios.