How Much Firepower Does Call of Duty Developer Activision Blizzard Have?

Given all of Activision Blizzard's success with "Call of Duty: Modern Warfare" and "Warzone," the company's stock has skyrocketed. Is this run up justified?
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(By David Marin Foto)
(By David Marin Foto)

Given all of Activision Blizzard's success with "Call of Duty: Modern Warfare" and "Warzone," the company's stock has skyrocketed. Is this run up justified?

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  • This is an interesting take but doesn’t seem to take into account several critical variables to the gaming industry that could unlock more opportunities for game publishers like Activision.
    Specifically 2 things:
    1) Next Gen Consoles and accompany new games usually is a time where new IP is revealed that may result in a new hit franchise.
    2) Next Gen Call of Duty is definitely in the works and will likely perform well relative to availability.
    3) Cloud-based gaming is becoming more and more real. This not only lowers the barrier to entry for potential gamers that can’t afford consoles and also had the capacity to increases profit from direct to consumer purchases and microtransactions.
    4) Acquisitions… Activision had alot of cash and it’s about time they start buying up some studios.
    That being said, not sure how much impact this could truly have on the businesses bottom line and ultimately the stock price.

    • I agree with these business drivers, but they’re generally baked in to the projected financials and I don’t believe that it would make a huge step change in EBITDA growth over the next 5 years to justify the valuation! 🙂

  • It was obvious that Activision is “not buy” stock because it is a game company with only one banger. They have Blizzard but let’s face it, who play Warcraft 3, Starcraft or WoW in 2020? This games are old/dead and Call of Duty franchise is a single banger they have. If you still want to invest in gaming industry, just choose gaming ETF with companies like: Ubisoft ($UBSFY), Take-Two interactive ($TTWO), EA ($EA), CD project ($OTGLY) and Sony ($SNE).

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