Analyst Note| Neil Macker, CFA |
Activision Blizzard posted a strong start to 2021 with top and bottom-line non-GAAP results ahead of FactSet consensus as Call of Duty continues to drive growth. CoD: Black Ops Cold War and Warzone saw in-game bookings or microtransactions growth of over 60% year over year. World of Warcraft also delivered strong bookings growth following the November release of the Shadowlands expansion. We are maintaining our narrow moat rating and raising our fair value estimate to $97 from $92 to account for the growth of higher-margin in-game bookings.