activision blizzard stocks drop & loses $3.7 billion after diablo immortal's disastrous announcement

activision blizzard stocks drop & loses $3.7 billion after diablo immortal

Jul, 31, 2023 Adobe upgraded, Salesforce downgraded: Wall Street's top analyst calls.Jul, 31, 2023 Yellow is shutting down after 99 years.Most likely, the company will need to show some progress on the workplace culture front to make the market believe that it will continue to deliver great games at a reasonable schedule.įor a look at all of today’s economic events, check out our economic calendar. The current valuation levels do not look cheap, and it looks that there is more room for multiple compression.

While Activisiion Blizzard owns strong franchises which will likely remain attractive in the longer-term, the company’s short-term problems may continue to put pressure on its stock.

Some employees have left the company after a recent workplace culture scandal, and it looks that the whole workplace culture story may have had a negative impact on productivity, leading to delays. The stock is down by more than 35% from highs that were reached at the beginning of the year. However, analyst estimates for 2022 have been trending lower and will continue to move lower in the upcoming weeks, and it remains to be seen whether current valuation levels will attract value-oriented investors. What’s Next For Activision Blizzard Stock?Ĭurrently, analysts expect that Activision Blizzard will report earnings of $3.83 per share in 2021 and $4.34 per share in 2022, so the stock is trading at 15 forward P/E. This delay will surely have a negative impact on analysts’ estimates for the next year. The company announced that it will delay Overwatch 2 and Diablo IV as it needs more time to develop the games. Net bookings are projected to total $2.78 billion in Q4 2021. In the next quarter, Activision Blizzard expects to report revenues of $2.02 billion and adusted earnings of $0.62 per share. The company reported revenue of $1.88 billion and adjusted earnings of $0.72 per share, meeting analyst estimates on revenue and beating them on earnings. Shares of Activision Blizzard found themselves under strong pressure after the company released its third-quarter report. Activision Blizzard Stock Falls After Company Delays Diablo IV And Overwatch 2

Activision blizzard stocks drop & loses $3.7 billion after diablo immortal's disastrous announcement