Activision Blizzard Is Making Waves Today

By Kim Brooks • Thursday, December 08 15:34 • Permanent Link

ATVI investors were likely spooked this afternoon by Reuters's report: "U.S. seeks to stop Microsoft's $69 bln bid for games maker ..." For more coverage, read the full article here. On the back of this news, Activision Blizzard sank -1.5% to a price of $74.82. Are the markets overreacting?

Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company belongs to the Communication Services sector, which has an average price to earnings (P/E) ratio of 18.65 and an average price to book (P/B) ratio of 2.62. In contrast, Activision Blizzard has a trailing 12 month P/E ratio of 26.5 and a P/B ratio of 3.9.

At today's price of $74.82 per share, Activision Blizzard is -21.06% away from its target price of $94.78, and on average, analysts give the stock a rating of buy. 2.8% of the company's shares are linked to short positions, and 82.0% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.