Skip to Content
Morningstar
Get 14 Days Free

Activision Blizzard Inc ATVI

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Activision Q3 Benefits From Stay at Home; Warzone and CoD Mobile Continuing to Drive Engagement

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Activision Blizzard reported a strong third quarter with top and bottom-line non-GAAP results beating FactSet consensus as the firm continued to benefit from gamers staying at home. As a result, player engagement and time spent in the firm’s games rose across the board versus last year. Call of Duty continues to benefit from expanding into battle royale (Warzone) and mobile with monthly active users up three times versus a year ago and hours played up seven times. We maintain our narrow moat and our $73 fair value estimate.

Read Full Analysis

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, 2020
Fiscal Year End Dec 31, 2020
Stock Type Slow Growth
Employees 9,200

Related

Commentary
'Tis the Season for Increased Consumer Spending
With markets at all-time highs and less travel, many consumers will splurge on consumer goods during this retail holiday season.
David Sekera
Fund Spy
Which U.S. Stock Funds Upped Their Technology Exposure The Most?
The average U.S. stock-fund allocation to IT and communication sectors is rising and some funds have increased exposure well above their benchmarks.
Katherine Lynch
Stock Strategist Industry Reports
U.S. Ban Could Have Major Implications for Video Game Industry
While the president had been attacking TikTok, the addition of WeChat and Tencent to the ban was a surprise.
Neil Macker
Stock Strategist Industry Reports
Content Is Still King for Video Games
We expect it to drive growth despite new consumption methods and potential regulation.
Neil Macker
US Videos
How Investors Can Play in the Video Game Space
We detail three areas of interest for investors.
Neil Macker
Stock Analyst Update
Activision Misses on 4Q; Weak Revenue Guidance for 2019
Management is calling this a transition year, and we are lowering our fair value estimate.
Neil Macker
Premium Article
8 Recently Upgraded Stocks
Our analysts increased their fair value estimates on these stocks by more than 10% in June.
Susan Dziubinski
US Videos
4 Narrow-Moat Video Game Publishers to Watch
Though they're all richly priced today, these firms stand to benefit from the trend of watching video games, the rise of e-sports, and the increasing use of microtransactions.
Neil Macker
Market Update
Should You Stuff Your Stocking With Video Game Stocks?
The gaming industry is healthier than ever--and growth is expected to continue.
Bryan Borzykowski
Fund Times
A Prudent Approach to Dividend-Stock Investing
Silver-rated Columbia Dividend Income favors companies generating steady, positive free cash flow.
Gretchen Rupp
Stock Strategist
Although Overvalued, It's Far From Game Over for Electronic Arts
Activision Blizzard, Ubisoft, and Take-Two also have potential in plans to expand and reinvigorate franchises.
Neil Macker
Stock Analyst Update
Fair Value Up for Activision, Shares Fairly Valued
The narrow-moat company got off to a strong start this year and expects the launches of Destiny 2 and the next Call of Duty game to boost results later this year.
Neil Macker
US Videos
Friday Five: M&A Mania Continues
Activision, Expedia, and Visa each announced acquisitions this week, while Facebook had a great quarter and Tesla's stock popped despite an earnings disappointment.
Jason Stipp
Commentary
High Opportunity Cost for Activision Acquisition
While the purchase of King may be positive financially in the short term, we are worried about the long-run opportunity cost of using $5.9 billion to purchase a one-franchise mobile developer.
Neil Macker
US Videos
Danoff, Davis, Lynch: Stock-Picking Ahead of the Crowd
The past Morningstar Manager of the Year winners favor credit card firms, split views on Facebook, address China's importance, extol executives' foresight for future growth and disruption, and much more in this panel presentation at the Morningstar Investment Conference.
Morningstar.com
US Videos
Davis: Value or Growth? We Want Both
Assessing growth as a component of value is a guiding principle that can lead to opportunities in different areas of the market, says Davis Selected Advisers manager Chris Davis.
Dan Culloton
Stock Strategist Industry Reports
EA and Activision Command the Console Cycle
These two moaty game developers have the established franchises and financial resources to benefit from the console cycle.
Carr Lanphier
Stock Strategist
Our 2008 CEO of the Year Nominees
These candidates stand out in a tumultuous year and over time.
Pat Dorsey
Stock Strategist
The Next Big Growth Trend for Video Game Makers?
Online gaming could drive profitable revenue growth.
Sunit Gogia
Stock Strategist Industry Reports
The Next Big Growth Trend for Video Game Makers?
Online gaming could drive profitable revenue growth.
Sunit Gogia