Activision Blizzard produces game franchises, and it was one of the gaming stocks that benefited from the coronavirus pandemic. Yet, Activision Blizzard is at new yearly lows – is this a good buy opportunity?
In the bullish stock market environment in early 2021, Activision Blizzard reached its all-time peak of $105. Yet, in late July, the stock experienced a major sell-off, trading around $77.18 at the time of writing. Is this a great opportunity to buy the dip?
Let’s find out whether Activision Blizzard’s decline signals further weakness, or it’s time you took advantage of this discount.
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What Is Activision Blizzard?
Activision Blizzard (NASDAQ: ATVI) is an American video game producer founded in 2008. It is part of the S&P 500 index. Some of the most popular games include Call of Duty, World of Warcraft, and Candy Crush Saga.
Should I Buy Activision Blizzard Today?
Wall Street analysts remain optimistic with regards to ATVI, despite its recent price drop. One of the reasons is the strong pipeline of content the company has, planning a wave of new content for its consumers’ consoles. Also, it’s worthwhile to mention that the company activates in the fastest-growing entertainment segment – the video game industry.
Furthermore, the company has a strong growth strategy. The gross margins are robust, which fuel its development. Some of the main tools used by Activision Blizzard include content investments, mergers and acquisitions, and share buyback schemes.
One of the main drivers of its share price decline was the recent sexual harassment lawsuit that involved the company. Yet, this could be weathered out with ease in the long term, as long as its growth plans materialize and the lawsuit does not drive talent away.
Activision Blizzard Price Prediction 2021
Several analysts are bullish on Activision Blizzard’s estimated price target. For instance, Uerkwitz declares a price of $120 in the next 120 months, well above its current price of $77.18, and even a major increase from its all-time high of $105 this February.
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