Invest in Activision (ATVI) with DotBig Forex Broker

Invest in Activision (ATVI) with DotBig Forex Broker

Activision Blizzard is the holding corporation, to which smaller companies belong. The first business of the holding was founded in 1979. It was the Activision company, which took the niche of the video games development and distribution. Activision became the first independent game developer in the USA, and it still regularly makes new releases of titles that have all the prospects to become real hits in the gaming industry.

Even if you know nothing about this industry, you must have heard about the best-selling games of Activision Blizzard. The company is responsible for the development of such series or titles as Diablo, Call of Duty, and World of Warcraft.

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Recently, Activision Blizzard became widely discussed by investors. This is all related to the Microsoft Activision stock acquisition. What happened, and how will it impact the future Activision Blizzard stock price? Is it a buy-in 2022? We are here, to answer those questions and eventually to find out whether Activision stock is a good investment right now. Let’s get down to business.

Performance of the Company

If we take a look at the quarterly report for the quarter ending on 31 March 2022, we will see that this year’s results for the first quarter aren’t as promising as they were a year before. In 2021, it was $2.28 billion, while in 2022, this is $1.77 billion.

In terms of annual revenues, the two previous years were quite successful for the company. In 2020, Activision Blizzard managed to generate $8.09 billion, which was $1.6 billion higher than in 2019. In 2021, the growth wasn’t as significant, but the company still managed to remain competitive in this industry by showing $8.8 billion of annual revenue.

The poor performance at the beginning of 2022 might be explained by two major issues:

  1. Activision Blizzard stopped selling its products in Russia as a result of the Russian invasion of Ukraine. Activision was one of the last big gaming companies to take this step.
  2. Blizzard didn’t make any major releases so far. Besides, Call of Duty: Vanguard failed to meet the expectations in terms of projected sales.

Key Events

  • In 2014, Call of Duty: Advanced Warfare became a real mainstream. It was considered to be the most popular console title all over the world. Call of Duty series also contributed to the increase of influence of the company on the Chinese market. In January 2015, Activision approached China by launching a beta of Call of Duty Online. These two releases appeared to be quite good-selling and helped the company to increase annual revenue. Due to positive reports, the ATVI stock price went from $17 in December 2013 to $37 in November 2015.
  • In 2017, ATVI stock showed an impressive performance by gaining 75.4%. It managed to beat the market expectation thanks to the extremely positive quarterly reports. The releases of Overwatch and Hearthstone made a great contribution to these better-than-expected results. Thanks to the combination of these factors, the stock was closing at $63.32.
  • Similar to many other gaming companies, Activision Blizzard took advantage of the pandemic. In 2020, the distributor boosted the sales thanks to the long-awaited comeback of the global hit – Call of Duty. Activision’s stock turned out to be the best-performing stock on the gaming market. Its price surged from $59 in December 2019 to $92.85 in 2020.
  • On January 18, 2022, Microsoft announced buying of Activision Blizzard for $68.7 billion – $95 per share. Currently, the stock is traded at around $75.

Trading Conditions with DotBig

DotBig Forex Broker

The DotBig forex broker offers the best conditions for investing in Activision Blizzard stocks. With the DotBig company, you can benefit from the lowest spreads, which are floating and fall as low as 0.62 points for stock trading. Additionally, the selection of papers is quite advanced – you can include not just Activision assets to mitigate the risks. Finally, DotBig.com offers one of the best selection of trading tools, with which even beginners will be able to invest money efficiently.

Pros

  • In 2016, Activision bought King Digital and became an owner of the Candy Crush Saga project. This step helped the company to retain its position at the top of the gaming industry. It remains at the top till today.
  • Activision is the owner of a number of the most popular series of games. Regular releases of updated titles will generate revenue simply because these games have loyal fan bases.
  • Microsoft agreed on the deal of the Activision Blizzard acquisition for $95 per share. Today, the stock is traded at around $75. If the deal doesn’t fail, investors, who buy the stocks today, will earn around $20 for each paper.

Cons

  • There has been controversy around the management of the company that might cause ATVI stock prices to fall down.
  • If the deal with Microsoft fails, the ATVI stock might fall lower than $60 per share.

Final Thoughts

To sum it up, experts agree that investing in Activision Blizzard stocks right now is a risky deal because of uncertainty related to the deal with Microsoft. On the other hand, if the deal is successful, the investors might raise their earnings quite significantly if they buy shares of the company today. All in all, the decision is up to you. We are here to explain to you all the advantages and disadvantages and to remind you that any investment involves risks.

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