ATVI - Embedded Expectations Analysis - 2018 12 04
Activision Blizzard, Inc. (ATVI:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 14.0x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their advertising performance, partner network issues, and their ability to sustain elevated in-game revenue levelsSpecifically, management may be concerned about their advertising performance, and may be exaggerating the success of their recent major launches. Additionally, they may lack confidence in their ability to sustain elevated in-game Call of Duty revenue levels, and to maintain increased overall engagement in Call of Duty Black Ops 4. Moreover, they may lack confidence in their ability to maintain strong participation in World of Warcraft value-added services, and may be concerned about their partner network challenges. Furthermore, they may be exaggerating the success of the Overwatch League expansion, and their excitement about the return of World of Warcraft Classic
Activision Blizzard is a global developer and publisher of interactive entertainment content and services. The company's segments are: Activision Publishing, Inc., which is a global developer and publisher of interactive software products and entertainment content, particularly for the console platform; Blizzard Entertainment, Inc., which is a global developer and publisher of interactive software products and entertainment content, particularly for the personal computers platform; and King Digital Entertainment, which is a global developer and publisher of interactive entertainment content and services, particularly for the mobile platform, including for Google Inc.'s Android and Apple Inc.'s iOS.
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