After a disappointing start to 2019, Activision Blizzard, Inc. (NASDAQ:ATVI) stock has been on a roll, driven higher by a number of new video game releases. In 2019, Activision Blizzard stock advanced about 27%.
Since the summer, Activision Blizzard has added new installments to its Overwatch, Diablo, and Call of Duty franchises. The company also has upcoming expansions of other game franchises, including World of Warcraft. (Source: “Activision Blizzard Announces Third-Quarter 2019 Financial Results,” Activision Blizzard, Inc., November 7, 2019.)
The company has also unveiled “King’s Council,” a new test group to help it research in-game advertisements and get insights from a selection of Activision Blizzard’s “most active and engaged players.” (Source: “Activision Blizzard Media Launches King’s Council, Its First Dedicated Player Research Community,” Activision Blizzard, Inc., December 16, 2019.)
ATVI Stock Overview
Activision Blizzard is one of the biggest video game companies on the planet.
Every month, approximately 500 million active users in 196 countries play the company’s games for gaming consoles, mobile devices, and desktop computers. (Source: “About Us,” Activision Blizzard, Inc., last accessed December 30, 2019.)
Activision Blizzard Stock Information
|Market Cap||$45.4 Billion|
|Shares Outstanding||768.3 Million|
|50-Day Moving Average||$56.57|
|200-Day Moving Average||$51.96|
(Source: “Activision Blizzard, Inc. (ATVI),” Yahoo! Finance, last accessed December 30, 2019.)
Q3 Results Top Both Revenue and EPS Guidance
On November 7, Activision Blizzard announced that revenue for its third quarter ended September 30 came in at $1.3 billion. That was down 15.2% year-over-year but above the previous guidance of $1.1 billion. (Source: Activision Blizzard, Inc., November 7, 2019, op cit.)
Third-quarter earnings per share (EPS) were $0.26, down 23.5% year-over-year but much higher than the previous guidance of just $0.05.
Adjusted EPS were $0.38, down 9.5% year-over-year but higher than the previous guidance of $0.20.
While the company’s financial metrics were better than expected, its operating metrics weren’t as strong. Overall monthly active users (MAUs) were 316 million, down 8.1% year-over-year.
Chart courtesy of StockCharts.com
Activision Blizzard stock took a hit in the second half of 2018, but turned a corner in 2019.
After trading in a tight range between $45.00 and $50.00 for close to eight months, ATVI stock surged higher.
Activision Blizzard stock has been bullish over the last few months, thanks in large part to third-quarter results that exceeded guidance, strong performance from Call of Duty and World of Warcraft, and new video game developments.
Management says the company has also achieved important milestones for several other of its game franchises.
Thanks to a strong product pipeline, the company’s momentum should continue in 2020.
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