ATVI

Activision Blizzard Inc

TMT


Presented:10/14/2021
Price:$76.11
Cap:$59.19B
Current Price:$94.42
Cap:$72.42B

Presented

Date10/14/2021
Price$76.11
Market Cap$59.19B
Ent Value$68.71B
P/E Ratio22.81x
Book Value$20.94
Div Yield0.62%
Shares O/S777.71M
Ave Daily Vol8,682,730
Short Int1.52%

Current

Price$94.42
Market Cap$72.42B
Activision Blizzard, Inc. engages in the development and publication of interactive entertainment. It operates through the following segments: Activision Publishing, Blizzard Entertainment and King Digital Entertainment. The Activision Publishing segment develops and publishes interactive software products and entertainment content, particularly for the console platform. The Blizzard Entertainment segment develops and publishes interactive software products and entertainment content, particularly for the PC platform. The King Digital Entertainment segment develops and publishes interactive entertainment content and services, particularly on mobile platforms, such as Google's Android and Apple's iOS. The company was founded in 1979 and is headquartered in Santa Monica, CA.

Publicly traded companies mentioned herein: Activision Blizzard Inc (ATVI)

Highlights

The presenter is long shares of Activision Blizzard Inc (ATVI) despite poor market sentiment caused by an ongoing sexual harassment investigation, video game restrictions in China, and third-party data indicating a weak Q3. He acknowledges that ATVI could have weak Q3 earnings but is prepared to deal with that volatility given his bullish long term view on the video game industry over the next few years. Consensus EPS expectations for 2022 and 2023 are $4.38 and $4.73, respectively, in contrast to his forecast of $5.10 in 2022 and $5.50 in 2023. Applying a 20x multiple, he reaches a $110 price target over the next ~18 months and expects the share price to reach $100 sooner than that (vs. the current $76 per share). 

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Idea Discussion

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