3 Reasons Activision Blizzard Is a Buy

Activision Blizzard (NASDAQ: ATVI  ) just reported shrinking quarterly sales and profits, but there are good reasons to remain bullish on the company and the stock.

In the video below, Fool contributor Demitrios Kalogeropoulos outlines three key factors that should drive improvement for Activision, both in the near term and the longer term. First, Demitrios says, the World of Warcraft franchise continues to kick in a solid contribution to cash flow. Second, its latest Skylanders title is poised to have a great holiday season despite the new competition from Disney's (NYSE: DIS  ) Infinity game. And finally, Activision's new ownership structure means that management's interests are aligned with shareholders' in a way that hasn't been true for five years. 

Watch the video below for more.

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Read/Post Comments (3) | Recommend This Article (1)

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  • Report this Comment On November 20, 2013, at 8:53 AM, patrickcook wrote:

    Sky lander Giants only raked in around 190 million in sales in 2012, how do you expect that it would even be considerable amount when the revenue for ATVI was over 4 billion in 2012?(without mentioning that Skylander Giants now faces more competition and first week(?)sales are down 30 percent)The most promising titles should be it's Destiny title which should gain a large market share from the play station four audience who are unable to get Titan fall, The world of Warcraft titles should continue to generate significant profit due to its high margins rather then revenue. Honestly ATVI's product pipelines for 2014(blizzard allstars, Destiny, Hearthstone) and beyond face significant risks as they are untested especially if they are to replace call of duty as their main cash cow.

  • Report this Comment On November 21, 2013, at 9:28 AM, patrickcook wrote:

    My bad, I meant Sky lander Swapforce sale is currently around 30 percent lower then Giants

  • Report this Comment On November 21, 2013, at 9:45 AM, TMFSigma wrote:

    Hey Patrick, not sure where you're getting that sales number, but Activision said that the Skylanders franchise was worth $1 billion in sales through the end of 2012. Giants was the 5th best-selling game that year, and Activision credits the skylanders franchise as the biggest reason that revenue grew last year vs 2011. It's an important game for their results.

    Best,

    Demitrios

    TMFSigma

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