Activision Blizzard (ATVI.US) stock rose sharply after major game developer posted better than expected results in the latest quarter partially thanks to high sales of its 'Call of Duty' franchise during the Christmas season.
-
Earnings per share came in at $1.87 versus estimates of $1.52.
-
Group adjusted revenues, which exclude deferrals, rose 43.4% to $3.57 billion in revenue, beating Refinitiv estimates of $3.16 billion
-
In-game net bookings jumped 46.8% to $1.82 billion, while monthly active users (MAU) rose 4.9% YoY to 389 million, beating market expectations of 388.4 million.
Highlights of Activision Blizzard Q4 earnings report. Adjusted earnings fell sharply despite higher revenues. Rising number of MAU is an optimistic sign. Source: Alpha Street
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app-
For Q1, the company expects "last least" a high teens year-on-year percentage growth rate for GAAP revenues, with mid-teens level gains for net bookings.
-
"We ended 2022 with record quarterly net bookings as we delivered on our mission to bring epic joy to players," said CEO Bobby Kotick. "I’m grateful to our talented and hardworking teams for their many successes entertaining our hundreds of millions of players around the world."
-
"Our experts have noted a broader flight to quality from gamers over the past year, but believe that Activision Blizzard is well positioned to be a winner of this trend given the strength of its two key franchises, 'Call of Duty' and 'World of Warcraft'," said Third Bridge analyst Nicholas Cauley.
-
On the other hand, uncertainty regarding planned $69 billion takeover l by Microsoft (MSFT.US), may limit upside potential. Deal faces a backlash from regulators around the world, including Britain's Competition and Markets Authority, which launched an investigation in September 2022.
Activision Blizzard (ATVI.US) stock bounced off the lower limit of the triangle formation at the beginning of today's session and is currently testing local resistance at $75.40, which coincides with 38.2% Fibonacci retracement of the downward move started in February 2021. Break above the upper limit of the triangle formation would be a first sign of potential reversal of the main downward trend. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
