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ATVI Stock – Should You Add Activision Blizzard to Your Portfolio?


Jan.24.2017

ATVI Stock - Activision Blizzard, Inc.

The ATVI stock is a share in the ownership of Activision Blizzard, Inc., an American interactive gaming and entertainment company. Yet another tech stock we have added to our portfolio here at Invest Diva. Because, we are geeks. So if you wanna get geeky with us, let's conduct the IDDA approach on the ATVI stock to see where we stand.

 

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1- Fundamentals - ATVI Stock

First things first, let's learn a bit about Activision Blizzard and their ATVI stock. They sure do have a cool name.

Who the heck are they? 

Are you one of THOSE people who love Candy Crush? Guess what, Activision Blizzard acquired the maker of Candy Crush and home of 544 million monthly active users, King Digital Entertainment, back in 2016. So now they are officially a distributor of this ultra addictive game. Basically, they are turning into the gamer's dreamland. Headquartered in Santa Monica, California, Activision Blizzard, Inc., is one of the world's largest third-party video game publishers.

Besides Candy Crush, their franchise includes some of the strongest franchises in all of entertainment, including World of Warcraft®, StarCraft®, Diablo®, Hearthstone®, Heroes of the Storm™, Overwatch™, Call of Duty®, Skylanders® and Destiny® among others.

 

Who are their competitors? 

One of their largest competitors is Japan based Nintendo.

Fun fact: Nintendo Wii was developed by a graduate of my university back in Japan. You know, where I studied Electrical Engineering before becoming an Invest Diva.

After a period of silence, Nintendo (NTDOY)  once again came in front of investors' eyes, as Pokemon Go became a global phenomena back in July 2016. At the time when Pokemon Go was released in Australia and the United States, Nintendo stock rose 89% in just eight trading days. In that time, Nintendo added $15 billion to its market value. At a market capitalization of $32 billion, Nintendo got to worth a smidge more than  Activision Blizzard. However the Pokemon Go fever seems to have faded away as more people found better jobs than chasing around Picachu.

 

 

What are they doing differently?

Simply put, the Candy Crush owner is crushing it. Both Nintendo and Activision Blizzard achieved above $5 billion in revenue last year. However, that's where the relationship stops. When comparing recent profitability and growth, Nintendo's valuation relative to Activision Blizzard seems a bit out of whack.

In addition to Candy Crush makers, Activision Blizzard also owns four of the top 10 games on the latest consoles, including Call of Duty: Black Ops III. Blizzard users were up 23% year over year in its latest quarter. The company also notes that gamers on its platforms spent 42 billion hours in 2016, higher or in line with Netflix (NFLX), Facebook (FB), and all of the major U.S. professional sports leagues combined.

At the time of writing this article, ATVI stock market cap stands at 29.05B, versus Nintendo's  24.67B.

 

 

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What's going on in their company structure?  

Their CEO is 53-year-old Robert A. Kotick, who  has been a director of Activision Blizzard since February 1991. His 2015 compensation was around $32,788,722. Neat.

Earnings Date: Feb 9, 2017


2- Long Term Technical Analysis

 

ATVI stock has been trading on the markets since June 1983. After a massive crash, it mainly remained a penny stock for almost 20 years. It wasn't until November 2004 that the share price broke above the key resistance of 4.15. Ever since, ATVI stock has turned into a growing stock, seeing the all-time high of 45.57 in August 2016.

ATVI Stock - Monthly Chart Technical Analysis ATVI Stock - Monthly Chart Technical Analysis

 

 

Naturally, the market pulled back after hitting this level. It bottomed out again in December 2016, forming a Doji candle followed by a Bullish Engulfing in January 2017. It still remains above the monthly Ichimoku cloud, and is supported by the 23% Fibonacci retracement level at 34.85.

 

3- Market Sentiment

On the daily time-frame, ATVI stock has been ranging inside the Ichimoku cloud, supported by the pivot level of 36.03. The Tenkan line has crossed above the Kijun line. Resisting pivot is set at 39.48. Key resistance levels are 42.76 and 45.49 in extension.

ATVI Stock - Daily Chart Market Sentiment ATVI Stock - Daily Chart Market Sentiment

 

 

ATVI Stock - Investing Strategy

If you are an Invest Diva student, you should be able to put the technical, fundamental and sentimental points of the IDDA approach together and develop an investment strategy based on your risk tolerance. For further help in developing your investing strategy, please visit our investing group.

Here are Invest Diva's calculations for important approximate levels for ATVI Stock to keep an eye on:

 

Support Levels Turning Point Resistance Levels
28.44 36.03 42.76
36.03 39.48 45.49

 

Want to leanr more about Ichimoku? Check out my new book, Ichimoku Secrets

 

xoxo

Kiana 喜愛成
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ATVI Stock - Activistion Blizzard Logo on Market Chart ATVI Stock - Activistion Blizzard Logo on Market Chart

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