ATVI - Embedded Expectations Analysis - 2018 03 28
Activision Blizzard, Inc. (ATVI:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 21.2x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about growth, investments, and earningsSpecifically, management may have concerns about their professional Overwatch league, and may lack confidence in the sustainability of improvements in monthly active user growth, particularly regarding Hearthstone. Furthermore, they may be exaggerating the opportunities they see for their owned MLG platform, and may lack confidence in the longer-term potential of their mobile investments. Moreover, they may lack confidence in the sustainability of EPS growth ahead of guidance, and may have concerns about their ability to methodically develop capabilities and infrastructure to build their Ads business in 2018
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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