Even with this acquisition, it would be just the third-largest video game company after Tencent and Sony — a fact that bodes well for the deal’s regulatory approval. Still, https://dotbig.com/markets/stocks/ATVI/ this doesn’t look like a company I’d be interested in investing in if regulators took the possibility of a buyout off the table, especially when compared to its rivals.
- The expanded community is engaging deeply, with average daily player numbers for the first month of Overwatch 2 more than double that of its acclaimed predecessor.
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Investors of record on Friday, April 15th will be paid a dividend of $0.47 per share on Friday, Activision Blizzard stock price today May 6th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 2.61%.
Activision Blizzard owns a couple of strong brands, such as the aforementioned Call of Duty and Warcraft, but also Diablo, Overwatch, and so on. When the company executes well, these assets should be easily monetized, meaning ATVI could deliver growth in line with the market, or potentially above that, over time. We will look at what investors can expect from those results, while the pending acquisition by Microsoft naturally is also important for ATVI’s upcoming share price performance. With ATVI currently trading significantly below the price Microsoft is offering, the market is pricing in a serious chance of the acquisition falling through. If that happens, ATVI could have further downside, due to a pricey valuation and the fact that the near-term outlook for consumer discretionary spending, such as gaming, isn’t great. We have revised the full-year 2021 sales forecast to be around $8.6 billion, in-line with the company’s guidance.
The co-development and publishing of Diablo Immortal is covered by a separate long-term agreement. Activision Blizzard generated $257 million in operating cash flow for the quarter as compared with $521 million for the third quarter of 2021. This score is calculated as an average https://dotbig.com/ of sentiment of articles about the company over the last seven days and ranges from 2 to -2 . This is a lower news sentiment than the 0.38 average news sentiment score of Consumer Discretionary companies. Activision Blizzard has received a 1.55% net impact score from Upright.
If You Invested $1000 In This Stock 10 Years Ago, You Would Have $6,600 Today
The company’s shares closed yesterday at $71.10.Pachter covers the Technology … Activision Blizzard’s third-quarter 2022 results reflect a negative impact from lower PC and console revenues besides a slow year so far for the gaming industry overall. Finder.com is an independent comparison platform and information service that aims to provide you with information to help you make better decisions.
Currently 0.861% of Activision Blizzard shares are held by insiders and 82.083% by institutions. The EBITDA is a measure of a Activision Blizzard’s overall financial performance and is widely used to measure a its profitability. So, if this follows historical performance, it is likely that ATVI stock will rise to higher levels going forward. Also, Forex news Return summarizes ATVI stock performance and chances of its rise or decline, among other metrics that matter. If this deal falls through, I’d guess it would drop lower than that due to the weak results of Activision and the slowing economic environment. This is the primary concern of regulators — but if the deal is approved, nothing will stop the acquisition. Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities.
Private Companies
59.0% of employees surveyed would recommend working at Activision Blizzard to a friend. A 12% drop in recent months suggested investors didn’t have high hopes for Activision’s ATVI stock price today earnings, but it looks like they may have underestimated them. Based on earnings estimates, Activision Blizzard will have a dividend payout ratio of 14.07% next year.
In Activision Blizzard’s case, that would currently equate to about $0.47 per share. However, Buffett’s move to load up on Activision stock was a vote of confidence that the deal will be completed. The acquisition requires approval https://www.forextime.com/education/forex-trading-for-beginners from various countries to ensure it does not lead to Microsoft becoming overly dominant in the video game market. The concern stems from Activision’s franchise Call of Duty, the world’s second-best-selling game series.
Markets
Despite the economies opening up with vaccination programs underway in multiple countries, the user engagement levels for gaming has remained on the higher side, aiding Activision Blizzard’s sales over the recent quarters. The company reported revenues of $2.3 billion dotbig in Q2 2021, up 19% y-o-y, and it has guided for $1.85 billion revenues in Q3. Our dashboard on Activision Blizzard Revenues offers more details on the company’s segments. Our interactive dashboard analysis on Activision Blizzard Pre-Earnings has additional details.
Activision Blizzard’s Q3 Earnings: What To Expect
sits at about $75 a share and has fluctuated in the range of $75 to $79 over the past month. Despite the recent downward revision in our price estimate for ATVI stock, there is still a large room for growth, in our view. For instance, TTWO stock currently trades at around 40x its forward earnings, while Electronic Arts trade at 21x. Even the average multiple for ATVI stock over the last few years stands north of 23x, implying that the stock is currently undervalued. Activision Blizzard also has a strong balance sheet, as its net cash position totaled more than $7 billion at the end of the most recent quarter. If the acquisition by Microsoft were to fall through, ATVI could utilize this cash by either looking for an acquisition target itself, or by using its cash hoard for buybacks. As the company’s market capitalization would likely fall to the $40 billion range (down ~30% from here), $7 billion worth of buybacks could reduce ATVI’s share count by 15% to 20% over time.
What Will The Acquisition Mean?
We are not investment advisers, so do your own due diligence to understand the risks before you invest. Activision Blizzard CEO Bobby Kotick said on Sept. 1 that the process is “generally moving along as expected,” and said he expects it to be complete by June 2023. All in all, there seems to be a great deal of positivity surrounding the Activision acquisition, which has only Activision Blizzard stock price been strengthened by Buffett’s confidence in the stock. Consequently, prospective buyers stand to profit by a little over 26% at Microsoft’s purchase price of $95 a share. The Berkshire Hathaway stake is currently worth about $5.1 billion, which will become $6.4 billion if the deal goes through. At the end of 2021, Berkshire Hathaway owned roughly 1.8% of Activision Blizzard.
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