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.
Activision facts
| Headquarters | Santa Monica, Calif. |
| Market Cap | $13.2 billion |
| Industry | Home entertainment software |
| Revenue | $4.45 billion |
| Management |
President/CEO Robert Kotick COO/CFO Thomas Tippl |
| Return on Equity (average, past 3 years) | 1.1% |
| Cash/Debt | $3.51 billion / $0 |
| Dividend Yield | 1.4% |
| Competitors |
Electronic Arts
Sony
Take-Two Interactive |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 6,994 members who have rated Activision believe the stock will outperform the S&P 500 going forward. These bulls include All-Star FakeWorest, who is ranked in the top 5% of our community, and macgyver52.
Just last month , FakeWorest tapped Activision's near-term future as particularly solid: "'11 earnings will be sleepy but stable but look for '12 earnings to jump 50% over year prior due to a ridiculous lineup in games. Buy and hold."
In fact, Activision currently trades at a cheapish forward P/E of 12.9. That represents a discount to rivals Electronic Arts (23.4), Sony (20.3), and Take-Two (13.9).
CAPS member macgyver52 elaborates on the Activision bull case:
Blizzard Entertainment alone is a monster in the PC and video game industry. Between mega international hits: World of Warcraft, Starcraft 1-2 (future sequels), Diablo 1-3 (future sequels announced) from Blizzard and all other hit games produced out of Activision for other platforms (call of duty, etc) ... it amazes me how little faith investors have. ... The company shows potential yet bearish investors hinder its true performance. I'm holding on to ATVI!
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