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Activision Blizzard, Inc. (ATVI)

NasdaqGS - NasdaqGS Real-time price. Currency in USD
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60.62-0.29 (-0.48%)
At close: 1:00PM EST
60.73 +0.11 (+0.18%)
After hours: 04:53PM EST
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  • P
    The profile of screaming Strong Buy: The 14-day RSI for ATVI is now at 25%. Based on a discounted cash flow analysis (using the Finbox site), ATVI is worth $90/share. The most "bearish" target is $54/share (MKM Partners). The most bullish target is $111/share (Goldman Sachs). So your downside risk is only 10%. But your upside return is 85% (if you can hold for 12 to 18 months). Folks, this could be the best risk-reward trade-off in the US stock market. P.S. $10 billion of cash in hand (3 x debt) and going operating margins of 36%.
  • J
    Activision business excels during covid times and during the holiday season. New development just came out about a new strain that shows resistance against the vaccine. Cases are also breaking records in Europe and they're going into lockdown. Perfect combination for Activision to maximize profits this quarter and beat any Wall Street estimates easily. The #1 hobby when people are in lockdown is gaming, buy hand over fist tomorrow.
  • D
    Remember lockdowns are good for Activision, Germany is expected to announce a lockdown either tonight or tomorrow morning. More European countries will follow and demand for Activision products will increase.
  • W
    Activision is one of the most undervalued companies in the market, a strong balance sheet with a cheap valuation. Majority of their customer base will continue to buy their products regardless of these fear-mongering headlines. We're going into the holiday season where Activision sales will be through the roof. Buy the fear and you'll be rewarded in a couple of weeks.
  • P
    The path forward to $80/share for ATVI within a month is so obvious: (1) Fire Kotick (2) Hire Jen ONeal; the former co-head of Blizzard as the new CEO (3) Announce a stock buyback plan (4) Re-confirm the dates of major upcoming releases e.g. Diablo Immortal (5) Change the Board composition to create more independent oversight. This is not rocket science, folks. You just need institutional investors to apply some pressure to make this happen quickly.
  • M
    Mr. D
    I like the idea of stock buy back, and this will able to lift the company a bit. Ultimately, it needs a closure for the whole scandal to calm the public and increase the employee moral. At this price, it is a good risk to take. How long until things are resolved is out of my reach.
  • S
    Activision Blizzard ATVI CEO Bobby Kotick has reportedly told "senior managers he would consider leaving the company if he can’t quickly fix the culture problems at the videogame giant" - WSJ
  • P
    If the Board really believes that the situation is in hand and the stock is grossly under valued, they should signal that confidence by announcing a stock buyback.
  • P
    Let's assume Kotick is not going to leave. He then needs to come out on all the major business networks (e.g. CNBC, FOX Business Channel, etc.) and clearly list all the new policies and measures being taken to ensure that current creative & developer talent stays - and top talent will be attracted. And specific actions being taken to address the concerns of women employees. It's not enough to say that you have a "no tolerance" policy or to create an ineffective committee.
  • J
    Prime time for either Apple or Microsoft to step in and buy Activision outright at a $70 billion valuation. Subtract the $10 billion cash on ATVI's books and it's a clear sale at $60 billion. The best part? The acquisition is immediately accretive to earnings and the acquirer gains valuable gaming franchises.
  • L
    Almost same revenue streams as EA and Take Two, and all three stocks have a covariance almost perfectly 1. But Activision has almost half the p/e. Also include so much cash it can pay its debt three times.

    I have never seen such an easy and obvious money in my life.
  • P
    Can someone explain to me why people (mostly on this board) love Bobby?

    It just seems to me like he's a normal suit and can be replaced. So if it's him vs 1200 employees it shouldn't be that hard a question who the investors would choose.

    (I understand that the BOD is basically in his pocket, but not the individual investors)
  • j
    This stock is a screaming buy at $62. I've doubled down. They have literally hundreds of millions of customers. The untapped licensing potential alone is worth several billion dollars....
  • a
    The recipe to fix this situation at a high level is pretty easy. Surprised the board hasn't seen the writing on the wall: 1. You have to let the CEO guy, this cloud will just continue until you can create a clean slate; 2. You must get an external CEO, preferably a woman; 3. Announce immediate stock buy back to take advantage of low stock price. That will start the turnaround process.
  • a
    It sounds like a lot of employees do like Bobby, and the Board seems extremely loyal. But their duty is to the entire company (and shareholders), and this cloud cannot blow over until Bobby leaves the company. He should already know this, and resign, and I'm sure right now the board is trying to subtly pressure him that it's the best thing for the company right now, regardless if it's truly fair. But this stock will be stuck here, and media stories and or protests will continue until he moves on. And then you make sure you hire a woman CEO so it will make it harder for people to claim it's male leadership covering the issues. Then you announce the stock buyback, and then show killer Q4 Revenue, and this will move back to $80+. But the longer this stuff drags out, and especially if it not a non-issue when strong Q4 is delivered, we won't get the bounce back.
  • B
    Not one person is mentioning Warzone Pacific which drops in December. All other potential contenders, Battlefield, Halo, Splitgate, have all failed. Warzone Pacific could very well secure the next 2 years of COD/Activision dominance in the Battle Royale space.
  • F
    I don't think this is going anywhere at this point.
    The financial fundamentals of the past means nothing as a reliable indicator of the future. Most of the top creative talents have left, they are the ones responsible for the game development. They are not replaceable easily. Ask anyone who has run a software production team, the top talents are vital to the company. If they are gone, the thing typically done is to promote the mid levels up to fill those spots, and this is happening. But the mid levels are not the same talrnt, not even close. In our company the top developers sign non-disclosures and non-competes and awarded stock options and they are paid 400k a year plus bonuses, the mid levels doing grunt development work we just pay 50k to 75k. No top developer will want to come to atvi due to the negativity, and no top developer will come take over a broken legacy system with no ramp up on transition. The mid and low level developers will just maintain the existing games as much as they can with no real vision. Best selling games will be put on pauses or sunset. New games with no vision will be released.

    My average price is $78. Sadly, I will be selling all my position in atvi next week, with or without Bobby. There is no financial engineering out of this mess.
  • S
    This is clearly the bottom trying to rocket up soon
  • K
    Ready to the moon?
  • C
    Kotick/Board of Directors primary obligation is to the shareholders not themselves. He must go as the media will not relent.
    I re-entered at $65 thinking he would leave. Bobby’s fan club won’t like it but the time has come or the slide continues.