Activision Blizzard Dips Lower As It Delays Its Products’ Launch

While the world is becoming more interconnected, it is also becoming less patient. This is especially true for companies like Activision Blizzard, Inc. Despite positive results, the company’s stock price has been severely punished due to its two delayed product launches. ATVI stock drops 13.22% in the pre-market session today on November 3 and is trading at $67.40. Overall results were solid with an uptick in net bookings and consistent in-game bookings.

90d65bd366954d54b27df3a2914dd3c0The company is conservative in its Q4 guidance, guiding to a net bookings range of $140M, which is below the consensus of $2.92B and $8.79B full-year expectations. This is a significant setback for both the franchise and the game industry in general. While Overwatch was one of the most successful titles of all time, Diablo is also one of the most iconic titles in history. ATVI believes that the intrinsic value of the company is $107.50, but it is still trading at a discount to its intrinsic value. Another thing to remember is that the company’s share price is likely to be stable relative to the rest of the market in the near future. Its low beta suggests that it may not reach its intrinsic value anytime soon.

Anthony Gonzales

Biotech, Tech, and Crypto reporter Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.

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