Use this info at your own discretion! This analysis is meant for long-term consideration.
YOU can OWN a part of Activision Blizzard (ATVI) by buying some of its stock from the online broker of your choice. I will now present 5 reasons to own this stock.
1 ATVI is in a Very Strong Industry
One of the most powerful forces influencing a stocks development is the strength of the underlying industry. The Gaming Industry is one of the strongest industries in the financial markets, and it got allot more room to run. Gaming has gone from being the pass time of a small niche of alpha-nerds to its current ubiquitous position. I think we have only seen the beginning, since interactive entertainment could seriously revolutionize education, medical rehabilitation etc.
2 ATVI is Strongly Positioned within its Industry
Activision Blizzard got a market cap of 28,76 Billion and is hence bigger than main rivals like Electronic Arts (21,61 B) and Take-Two Interactive (3,01 B). In other words, this is a large cap company… that also pays a dividend. ATVI got video games across the major platforms, and they have allot of untapped potential in the mobile space. Let me mention some of their most famous game franchises: Tony Hawk, Destiny, Call of Duty, Skylanders, Guitar Hero, World of Warcraft, Diablo, Crash Bandicoot, Spyro the Dragon, Hearthstone, and Starcraft.
3 Their Stock Shows Robust Technical Trend Channels
We want to see strong trend channels in technical analysis, and ATVI´s chart is truly a beauty in this regard… its stock appreciating a succulent 225% over the last 5 years, 120% over the last 2, and 95% year to date: as of 29.12.2015. I really like the stability in its chart, with few extreme moves in either directions, and while there are charts with less volatility, this one offers really great performance.
4 Institutions Like ATVI
You want to have the big boys on your team, and ATVI sure does. Current average brokerage recommendation is 1,8 (Buy), and Morningstar and Zacks Investment Research rates ATVI favorably. Further, you will find ATVI in many top-notch mutual funds, due to its strong and stable performance.
5 Great Opportunities in the Future
IMO I think ATVI should push allot more into the mobile space, both in the form of dedicated mobile games, cross-platform, and apps that edify the console/PC experience. On the Massive-Online-Roleplaying-Game front, I really struggle to see why they did not adapt World of Warcraft to consoles. Warcraft is getting long in the tooth, and they rally need to come-up with something to be the king of MORPG in the future.
Overall, ATVI is a great stock! Try to get it on a pullback/correction… IF you can that is.