Activision Blizzard announced results for the third quarter, which largely exceeded analysts' expectations - but the stock plummeted. It happened because of the postponement of releases of the expected video games Overwatch 2 and Diablo IV, which were supposed to be released in 2022 to the next 2023, as well as because of the scandal with the head of the company.
The company explained that they want to give more time to the development team, and the quality of the content will only benefit from this, because the extra time will allow the full potential of video games.
But we can not forget about the internal problems of the company associated with discrimination in the ranks of the company. Here, too, things were not very good, but the company has done a lot of work to eliminate these problems, which should have a positive impact on its status.
This is good news for investors!
Why? You ask... The answer - the company for this not easy period has increased the index in revenues by 20% compared to the previous semester. It also did not cancel the release of the same Diablo Immortal on mobile platforms (which has not once postponed).
Falling shares of Activision Blizzard by 15% because of the transfer of games. Is it possible to make a profitable investment, a good start? Or what will happen next ?
It's also a good start for newcomers to the world of investing - a steep decline is an opportunity to buy cheaper shares with good growth potential and good dividends
What about analysts?
Most think stocks can still rise
According to Refinitiv's annual consensus forecast, Activision Blizzard stock still has upside potential -- it could rise 55.27%, to $106.02. Of the 33 analysts polled, 28 recommend buying the stock, while five recommend holding it.
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