Why Now Is the Time to Buy Activision Blizzard, Inc. (NASDAQ:ATVI) Stock

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Do you like video games? I do. Activision Blizzard, Inc. (NASDAQ:ATVI), one of the largest gaming companies on the planet is preparing to release it's earnings August 2nd after hours and wall street is betting big the company will beat earnings. Activision Blizzard, Inc. (NASDAQ:ATVI) has been gobbling up a huge share of the market and all indicators show the momentum is on their side big time.

Credit Suisse once again issued a strong buy signal on the stock and the drop in the NASDAQ is presenting us with a small discount. The company's own conservative guidance says earnings per share will be down 19%, but this is typical for them and they consistently beat their own estimates by a significant margin. There are a lot of factors going into my opinion that this stock could be one of the best buys for not only the short term but the future as well. 

Reasons Why Activision Blizzard, Inc. (NASDAQ:ATVI) Stock is Primed to Breakout 

Activision Blizzard, Inc. (NASDAQ:ATVI) is one of the top gaming companies period, but their online dominance is where they really shine. As early pioneers of online gaming, they gained a foothold in the online market before a lot of their competitors even existed. In recent years we saw the launch of Blizzard.net which hosted a few of their own games and has now expanded to host other publishers content as well, such as Microsoft Corporation (NASDAQ:MSFT) title Destiny 2.

Not only is it one of the first online gaming networks it is one of the best and considered a rising bar in the industry. Of all the games they have published and are currently running online Activision Blizzard, Inc. (NASDAQ:ATVI) currently has 8, yes 8 franchises with over one billion USD in sales each and a massive user base. Overwatch, one of their flagship titles has an active player base of 32 million and counting. Their push into mobile-only furthers their reach and is considered one of the most promising aspects of Activision Blizzard, Inc. (NASDAQ:ATVI) stock future outlook.

A scene from the Overwactch World Cup


Looking past their dominance in traditional indicators like sales we can find Activision Blizzard, Inc. (NASDAQ:ATVI) dominating in another, newer sphere: e-sports. Yes, e-sports are a thing, a big thing that keeps getting bigger. Last year's revenue for e-sports was 655 million USD, projections for 2018 show an incredible 38% increase to 905 million and some estimates put revenue pushing past 1 billion. Over the past 2 years, the viewership of e-sports is over 100%, it's even on ESPN now in addition to streaming on Amazon.com, Inc.(NASDAQ:AMZN) streaming service Twitch.

 Activision Blizzard, Inc. (NASDAQ:ATVI) being the innovators they are have seized on the opportunity and created the first professional e-sports league with 28 teams selling around 2 million USD each. CEO Bobby Kotick was quoted saying, "When we created Overwatch at Blizzard, it was always with the expectation that we would be able to celebrate and recognize our players in a way that would be consistent with traditional sports.

The only way you really could accomplish that would be to have the very best traditional sports team owners participate in ownership in the league, along with these great entrepreneurs from esports, and that's what we've done." The strategy is paying off big, more and more viewership is turning away from traditional sports and turning to e-sports, consider it a generational shift if you will, but it's a reality any way you slice it. 

Conclusion 

Currently trading at $77 USD Activision Blizzard, Inc. (NASDAQ:ATVI) stock price is at a high point. It's possible that there will be a brief resting period while sectors rotate on earnings and the NASDAQ feels pressure. The current support line is around 66 USD and makes a decent price target for buys. Over the past 2 yearsActivision Blizzard, Inc. (NASDAQ:ATVI) stock is up 200% in price and all indicators point to much greater future growth. Not only is this company profitable, they are dedicated to their customers.

This has fostered a product loyalty among a very large base of players and spectators, the company's successes being a direct reflection of this attitude. Things have only improved over the years for Activision Blizzard, Inc. (NASDAQ: ATVI) and the company has grown more sophisticated and successful, I believe this pattern will continue far into the future as they continue to command an international market.

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Comments (9)

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  • John R
  • ,  Contributor
  • 30 July 2018, 11:07 am

when the super super high quality virtual reality gaming starts this company will show its true value. I love this stock.\n

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    When VR becomes more popular, The only company I think of that will be able to compete with ATVI (although not directly because they kind of have their own characteristics games) are Bethesda Softworks

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      VR is going to be a long ways away. The amount of VR headset sold in the market is minimal compared to PC

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        Wish I had another couple grand laying around but its already tied up in ATVI LOL

           0   Reply (0)   Follow(437)  

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          • Scott
          • ,  Contributor
          • 30 July 2018, 11:07 am

          Atvi is now not just a regular gaming company. It holds 5 brands worth one billion each: wow, starcraft, diablo, overwatch, cod and candy crush. plus more hits including destiny 2, crush bandicot, spyro, hots and more. They are popular in every major gam

             0   Reply (2)   Follow(437)  

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            Just a question? Do you think this company is going to get aquired or be acquiring other media brands

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              I don't think it will be bought out, it will be an icon like Coca-Cola there will be others but they will not meet the standard.

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                • John R
                • ,  Contributor
                • 30 July 2018, 11:07 am

                The Overwatch League generated viewership of 10 million in the first FOUR days. The NFL has an ANNUAL viewership of 40 million per season! In a few years, as the younger generation graduates college and begins investing, stocks like ATVI will skyrocket.

                   0   Reply (0)   Follow(437)  

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                  I\'ll say it again and again . buy buy buy folks.

                     0   Reply (0)   Follow(437)  

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