Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game giant Activision Blizzard
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.
Activision facts
Headquarters |
Santa Monica, Calif. |
Market Cap |
$15.18 billion |
Industry |
Home entertainment software |
Trailing-12-Month Revenue |
$4.37 billion |
Management |
CEO Robert Kotick (since 1991) CFO Thomas Tippl (since 2008) |
Major Franchises |
Guitar Hero, Call of Duty, X-Men, StarCraft, Warcraft, World of Warcraft |
Cash / Debt |
$2.83 billion / $0 |
Competitors |
Electronic Arts
Take-Two Interactive |
CAPS Members Bullish on ATVI Also Bullish on |
General Electric
Johnson & Johnson |
CAPS Members Bearish on ATVI Also Bearish on |
Amazon
Citigroup |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 4,540 members who have rated Activision believe the stock will outperform the S&P 500 going forward. These bulls include All-Star jamespeer, who is ranked in the top 15% of our community, and Sweetsonic.
Late last month, jamespeer peered into Activision's near term:
Rock solid financials. Number 1 games producer in the world. I am expecting a huge Q4 for Activision with Modern Warfare 2 coming out, [PlayStation 3] price cut, and of course sales will naturally soar over the xmas period.
In a reply pitch from last week, Sweetsonic dives deeper into the pipeline:
I'm actually really surprised that [Activision] is not trading way above its current value. It's true that the WOW and Guitar Hero series' will not last much longer, but look at their other prospects. COD: Modern Warfare 2 will be out this holiday season -- speculated to be the biggest selling video game ever. If that news doesn't bring them up in Q4, I don't know what will.
My biggest disappointment in the company is actually on the Blizzard side of things. The production delays on Starcraft 2 and Diablo 3 are puttin' a hurt on the image of the company. However, I think if they can pull it together by Q2 2010, we should see some real growth. [Activision] really has the potential to fly ahead of every company in this industry.
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