Based on the aggregated intelligence of 180,000-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||$14.1 billion|
|Industry||Home entertainment software|
|Trailing-12-Month Revenue||$4.5 billion|
|Management||President/CEO Robert Kotick
CFO Dennis Durkin
|Return on Equity (average, past 3 years)||5.7%|
|Cash/Debt||$3.5 billion /$0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 7,186 members who have rated Activision believe the stock will outperform the S&P 500 going forward.
The upcoming Blizzard title Diablo 3 will be released on May 15th. Unlike the subscription model used in other popular online games, like the Blizzard-developed World of Warcraft series, D3 will be utilizing a microtransaction system. In-game items will be purchasable through an online auction system, with a small fee going to Blizzard when money is cashed out. The success of other game developers using microtransactions (Zynga) coupled with Blizzard's already loyal customer base and the ability for the casual player base to play the game without investing money at the outset should lead to a larger more consistent player base than WoW with less churn. On top of that, profits should see a large boost in initial game sales due to this title.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of and has written calls on Activision. Motley Fool newsletter services have recommended buying shares of Activision and Take-Two, as well as creating a synthetic long position in Activision. The Motley Fool has sold shares of Sony short. Try any of our Foolish newsletter services free for 30 days.