ATVI

Activision Blizzard Inc

TMT


Presented:06/02/2016
Price:$38.69
Cap:$28.86B
Current Price:$94.42
Cap:$72.42B

Presented

Date06/02/2016
Price$38.69
Market Cap$28.86B
Ent Value$28.21B
P/E Ratio34.54x
Book Value$11.31
Div Yield0.01%
Shares O/S746.00M
Ave Daily Vol6,737,914
Short Int3.18%

Current

Price$94.42
Market Cap$72.42B
Activision Blizzard, Inc. is an online, personal computer, video game console, tablet, handheld and mobile game publisher of interactive entertainment. The company operates through three segments: Activision Publishing, Inc., Blizzard Entertainment, Inc and Activision Blizzard Distribution. The Activision Publishing, Inc. segment publishes interactive entertainment software products and downloadable content. It markets its products through retail channels and by digital download. The Blizzard Entertainment, Inc. publishes real-time strategy, role-playing PC games and online subscription-based games in the massively multi-player online role-playing game category. The Activision Blizzard Distribution segment engages in the distribution of interactive entertainment software and hardware products. It provides warehouse, logistic and sales distribution services to third-party publishers. The company was founded in 1979 and is headquartered in Santa Monica, CA.

Publicly traded companies mentioned herein: Activision Blizzard Inc (ATVI), Tencent Holdings Ltd (700 HK), Vivendi SA (VIV FP)

Highlights

Shares of Activision Blizzard (ATVI) are trading at near 52-week highs (~$39) and the presenter is becoming incrementally more bearish on the outlook for the stock. He is not yet short, but likes the set up. ATVI has a lot of momentum and could report one or two more good quarters; however, the combination of fundamental deterioration at King and the May 9th, 2016 announcement that ASAC II will distribute 171,968,042 shares of ATVI common stock (on June 8, 2016; ASAC is more fully described below) will likely weigh on the stock in the near future. And, as King’s performance deteriorates, it is likely to become apparent that 2017 numbers will have to come down.

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Idea Discussion

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