Activision Blizzard Stock Fair Value Calculator – Goldman Sachs Selects Activision Blizzard as Top Stock for Potential Economic Downturn
June 19, 2023
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Goldman Sachs recently selected Activision Blizzard ($NASDAQ:ATVI) as one of the top stocks to invest in, in case the economy takes a hard landing. This decision was based on the strength of the company, the performance of its stock, and their strong presence in the entertainment and gaming industry. Activision Blizzard is a world leader in creating interactive entertainment. The company is most well-known for award-winning game franchises such as Call of Duty, World of Warcraft, Candy Crush, Hearthstone, Overwatch, and Diablo. As well, they have some of the most popular game franchises on mobile platforms like King’s Candy Crush series.
Activision Blizzard’s stock has been performing well in the stock market. This steady growth shows that Activision Blizzard is a safe bet for investors who are looking for consistent returns. Given their strong presence in the gaming industry and good performance in the stock market, it is no surprise that Goldman Sachs has selected Activision Blizzard as one of the top stocks to invest in if a hard landing occurs. With their long history of success and strong financials, Activision Blizzard is a great choice for investors who are looking for long term returns.
Price History
On Tuesday, Goldman Sachs selected ACTIVISION BLIZZARD as one of its top stocks in the potential event of an economic downturn. The stock opened at $79.1 and closed at the same price, representing a 0.1% increase from its last closing price. This minor uptick in the stock price was in spite of the potential for a market downturn, indicating a positive sentiment for the company’s future prospects. 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 |
| 8.14k | 1.86k | 23.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Activision Blizzard. More…
| Operations | Investing | Financing |
| 2.22k | -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 |
| 27.39k | 7.28k | 24.54 |
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 |
| 8.1% | 4.4% | 26.5% |
| FCF Margin | ROE | ROA |
| 26.1% | 6.9% | 4.9% |
Analysis – Activision Blizzard Stock Fair Value Calculator
At GoodWhale, we recently conducted an analysis of ACTIVISION BLIZZARD‘s fundamentals. After going through several criteria, we used our proprietary Valuation Line to derive an intrinsic value of $94.1 per share. Comparing this with the current market price of $79.1, we can determine that the stock is undervalued by 15.9%. More…
Peers
The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.
– Take-Two Interactive Software Inc ($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
Activision Blizzard is a leading interactive entertainment company that has seen strong growth and success in the past few years. Their portfolio of popular titles such as Call of Duty, Overwatch, and World of Warcraft, have enabled them to be a major player in the global gaming market. Investors who are interested in the company should focus on factors such as their ongoing success in new titles, their financial health, their expansion into mobile gaming, and their ability to stay competitive in the gaming space.
Additionally, their long-term strategy of developing innovative content and integrating it into their existing game libraries also provides a strong outlook for investors. With these considerations and others, Activision Blizzard is an attractive option for investors who want to capitalize on the growth of the gaming industry.
