Based on the aggregated intelligence of 170,000-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.
|Headquarters||Santa Monica, Calif.|
|Market Cap||$14.03 billion|
|Industry||Home entertainment software|
|Trailing-12-Month Revenue||$4.54 billion|
CEO Robert Kotick (since 2008)
CFO Thomas Tippl (since 2008)
|Trailing-12-Month Return on Equity||2.9%|
|Cash/Debt||$2.85 billion / $0|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last month, KandMG tapped Activision as an essential selection:
Aside from the heaps of cash, subscription revenue, and no debt, the releases of future games are looking good. Sure, people aren't buying as many games as they used to, but gamers (myself included) still buy the games they "have to" play. A lot of them are made by this company.
Activision's portfolio of highly attractive franchises, huge scale, and healthy cash flow generation continue to support its four-star status. In fact, Activision's free cash flow margins have averaged about 25% over the past two years, easily topping those of video game rivals Electronic Arts (4.5%), Take-Two (-10.6%), and THQ (-0.9). With Blizzard's leading position in the highly attractive online multiplayer space, CAPS member drudski believes the cash will only keep coming:
As a recovering addict I know [Massively multiplayer online role-playing games] are more addictive than slot machines and day trading because eventually you always win that magical sword. Peer pressure to stay online is high. Addicts would rather play the game rather than eat or look for a job. The only challenge is hooking new subscribers. [T]oday the company focus appears to be keeping the existing addicts coming back for more. If the company would focus on growth I'm sure they could hook more.
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