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.

 

Fool contributor Demitrios Kalogeropoulos owns shares of Walt Disney and Activision Blizzard. The Motley Fool recommends Activision Blizzard and Walt Disney. The Motley Fool owns shares of Activision Blizzard and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.