Why Activision Blizzard Shares Popped

Is this meaningful or just another movement?

Evan Niu
Evan Niu, CFA
Feb 8, 2013 at 3:50PM
Technology and Telecom

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Activision Blizzard (NASDAQ: ATVI) popped by as much as 16% today after the company reported strong earnings.

So what: Adjusted revenue came in at $2.6 billion, with adjusted earnings per share of $0.78. Sales came in above Activision Blizzard's own guidance, as well as Street forecasts, and the bottom line was also better than investors were expecting.

Now what: The company's Call of Duty and Skylanders franchises continue to do well, with each taking home the title of No. 1 and No. 3 best-selling franchises, respectively, within North America and Europe. Next month, the company is set to release StarCraft II: Heart of the Swarm, the highly anticipated follow-up to its StarCraft II franchise. The game maker expects 2013 adjusted revenue to be approximately $4.2 billion, with adjusted earnings per share of $0.80.

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