Buy Activision Blizzard ATVI

[aavazaawjos]

Any gamer out there knows that Activision Blizzard (ATVI) delivers hit after hit. Well this fall they have another game of the year coming out in Call of Duty: Black OPs. If you have any skeptics about how great the game is going to be I think this trailer can help get rid of them.

[acipojesa]

Above is just a small piece of what Activision Blizzard does remarkably well. Frankly they are one, if not the best video game designer out there. Their business as a whole isamazing. ATVI blew everyone out the water in the first quarter doubling profit numbers and increasing revenue +30% to $1.3 billion. For some reason though the stock hasn’t followed. The video game creator has been lagging in the past 12 months compared to other stocks. With fall around the corner and strong titles coming out I think this stock will start to pickup. A PEG of 0.1 shows this stock is undervalued big time. $3.3 billion in cash shows they have room to grow. Analysts love it, I love it, the world should love it. ATVI should lag no more as I have a target price of $18.

[adavisvenu]

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Don't forget Starcraft 2 and the World of Warcraft expansion.

Not sure if I share the sentiment though... most of their revenue comes from subscription fees for World of Warcraft, and the number of subscriptions has been steadily dwindling. Also, their hit series Guitar Hero has run its course, so they will no longer be seeing huge bumps it revenue from that.
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[Adogamandel]

Starcraft II, WoW and CoD expansions, then Diablo... so ATVI will do well, but as has been pointed out, subscriptions are not what they used to be. On the brighter side, Activision is unifying Battle.net and it will somewhat resemble Steam. I can see a fee for battle.net use (for all games) in the future.

In sum: its not going to see 18 any time soon but has potential. :top: