Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game giant Activision Blizzard (Nasdaq: ATVI ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Activision's business and see what CAPS investors are saying about the stock right now.
|Headquarters||Santa Monica, Calif.|
|Market Cap||$14.0 billion|
|Industry||Home entertainment software|
|Trailing-12-Month Revenue||$4.8 billion|
|Management||President/CEO Robert Kotick
COO/CFO Thomas Tippl
|Return on Equity (Average, Past 3 Years)||4.4%|
|Cash/Debt||$2.9 billion / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 7,021 members who have rated Activision believe the stock will outperform the S&P 500 going forward.
Game Developers are typically the complete anti-Deej stock. They are usually expensive, rarely pay dividends, and are at the mercy of the taste of notoriously fickle consumers.
So why am I giving the thumbs up to Activision? I'll tell you why. The company has completely knocked the cover off the ball with its new Skylanders series of games / toys. I fully admit that I have not done enough research on this matter to know how much one hit franchise will move the needle for this large company, nor would I likely invest real money in this idea. However, I got my two sons Skylanders for Christmas and its all that anyone in their classes is talking about. The figures have been completely soldout of every single store and on-line since before Christmas. It looks like [Activision] has the makings of a huge hit on its hands.
I'm not investing in Activision for the long haul here in CAPS, just until Mr. Market realizes what a big hit the company has on its hands with its new series.
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