Activision Blizzard Stock Intrinsic Value – ACTIVISION BLIZZARD Reports Financial Results for Second Quarter of FY2023
July 26, 2023
🌥️Earnings Overview
ACTIVISION BLIZZARD ($NASDAQ:ATVI)’s financial results for the second quarter of FY2023, ending July 19 2023, revealed an increase of 34.2% in total revenue from the same period year-on-year to USD 2207.0 million. Net income also rose significantly by 109.6% to USD 587.0 million relative to the same quarter in the previous year.
Price History
The company opened at $92.6 and closed at $92.2, down 0.6% from its prior closing price of 92.7. The company also reported a decrease in operating expenses, including a decrease in research and development expenses by 4%. This reduction was mainly driven by decreased spending on public relations and marketing and decreased personnel-related expenses, partially offset by increased spending on game development and customer support.
Overall, the company had a successful quarter and reported strong financial results. Its new games and initiatives are expected to strengthen the company’s position in the industry and drive further growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Activision Blizzard. More…
| Total Revenues | Net Income | Net Margin |
| 8.71k | 2.17k | 25.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Activision Blizzard. More…
| Operations | Investing | Financing |
| 2.15k | -4.99k | -534 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Activision Blizzard. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 28.52k | 7.72k | 26.45 |
Key Ratios Snapshot
Some of the financial key ratios for Activision Blizzard are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.6% | 1.4% | 27.5% |
| FCF Margin | ROE | ROA |
| 23.5% | 7.3% | 5.2% |
Analysis – Activision Blizzard Stock Intrinsic Value
At GoodWhale, we have analyzed the fundamentals of ACTIVISION BLIZZARD and based on our proprietary Valuation Line, we have determined that the fair value of the ACTIVISION BLIZZARD share is around $92.7. Currently, the stock is trading at $92.2, which is slightly lower than its fair value. Therefore, we believe that the stock is currently trading at a fair price. More…
Peers
The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.
– Take-Two Interactive Software Inc ($NASDAQ:TTWO)
Take-Two Interactive Software, Inc. is a holding company, which engages in the provision of entertainment products and services. It operates through the following segments: Publishing, Distribution, and Other. The Publishing segment refers to the development, marketing, and sale of software products and content through physical retail, digital download, online platforms, and cloud streaming services. The Distribution segment comprises of the third-party distribution of physical retail products and digital downloads of games and add-on content. The Other segment covers licensing and management fees, royalties, and other non-operating income. The company was founded by Ryan Brant and Jeffrey D. Lapin on September 24, 1993 and is headquartered in New York, NY.
– Electronic Arts Inc ($NASDAQ:EA)
Electronic Arts Inc is a leading global interactive entertainment software company. The Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
As of 2022, Electronic Arts Inc has a market cap of 35.66B and a Return on Equity of 10.3%. The company is a leading global interactive entertainment software company and develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
Summary
Investors may be interested in Activision Blizzard due to its impressive financial results for the second quarter of 2023. Revenues surged by 34.2%, to USD 2207.0 million, while net income was up by 109.6%, to USD 587.0 million. This performance demonstrates strong operational success and strategic execution, making Activision Blizzard attractive for long-term investors. The company’s portfolio of popular titles, such as Call of Duty and World of Warcraft, are likely to continue driving growth in the future.
