Today's video focuses on Activision's (ATVI) earnings, reported on Nov. 2 after the market closed. Here are some highlights from the video.
- Overwatch and Diablo, two of Activision's most anticipated games for 2022, are expected to be delayed. The delays are due to personnel departures and other internal interruptions. Call of Duty Vanguard also saw a delay earlier this year and was just released on Nov. 5.
- Investors do not enjoy uncertainties in the market, and Activision comes with a list of uncertainties. One of Blizzard's recently appointed co-leaders, Jen Oneal, plans to leave by the end of the year. Jen Oneal was named co-leader of Blizzard in Aug. 2021, after numerous scandals appeared under the Blizzard umbrella. Investors might not enjoy the fast turnover rate in leadership.
- Activision still has a healthy player base and owns numerous strong franchises. Monthly active users were flat year over year (YOY). Some investors could have expected a yearly decline since last year pushed countless new users to find entertainment through gaming as lockdown restrictions affected most of the world. Net bookings were $1.88 billion for the quarter, up 6% YOY.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of Nov. 5, 2021. The video was published on Nov. 8, 2021.
