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.