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Activision Blizzard Inc ATVI

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Morningstar’s Analysis

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ESG Issues Continue to Hammer Activision Blizzard Shares; Change at the Top Required to Unlock Value

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Activision Blizzard benefited from the coronavirus lockdown restrictions, driving top-line growth and share price appreciation throughout 2020, and arguably putting the firm in a stronger position than when it entered the pandemic. However, the firm's share price has fallen dramatically since July 2021 when the California Department of Fair Employment and Housing filed a wide-ranging workplace discrimination and harassment lawsuit against Blizzard. The lawsuit and subsequent allegations forced a number of resignations of senior executives and developers including then-Blizzard President J Allen Brack. The resignations and other issues forced Overwatch 2 and Diablo 4 launches to be delayed past 2022.

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Company Profile

Business Description

Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.

Contact
3100 Ocean Park Boulevard
Santa Monica, CA, 90405
T +1 310 255-2000
Sector Communication Services
Industry Electronic Gaming & Multimedia
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Classic Growth
Employees 9,500

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