Yahoo Finance Here's How Much a $1000 Investment in Activision Blizzard, Inc Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Activision Blizzard, Inc (ATVI) ten years ago? It may not have been easy to hold on to ATVI for all that time, but if you did, how much would your investment be worth today?
Activision Blizzard, Inc's Business In-Depth
With that in mind, let's take a look at Activision Blizzard, Inc's main business drivers.
Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the esports concept.
Activision Blizzard benefited from the shift to digital download format. The company’s policy of updating games all the year-round increased revenue visibility and stability.
Moreover, the acquisition of King Digital in 2016 fortified Activision’s footprint in the mobile genre.
On Jan 18, 2022, the company entered into an agreement with Microsoft Corporation and Anchorage Merger Sub Inc., a wholly owned subsidiary of Microsoft. Microsoft agreed to acquire the company for $95 per issued and outstanding share of common stock, in an all-cash transaction of $68.7 billion. The merger is currently expected to close in Microsoft’s fiscal year ending Jun 30, 2023.
Activision reported revenues of $7.53 billion in 2022.
The Santa Monica, CA-based company operates under three major segments and incorporates studio, media networks and distribution businesses under the “Others” segment.
Activision creates and publishes games for consoles, desktops, mobile and tablet. Franchises under this segment include Call of Duty, Crash and Spyro. The segment generated revenues of $3.27 billion and accounted for 40.5% of 2022 revenues.
Blizzard publishes games particularly for the PC format. It also maintains a proprietary online gaming service, Blizzard Battle.net, which facilitates digital distribution of Blizzard content and selected Activision content, online social connectivity, and the creation of user-generated content. The Overwatch League comes under this segment. The segment generated revenues of $2.01 billion and accounted for 24.9% of revenues.
King operates as an independent unit. The segment generated revenues of $2.78 billion and accounted for 34.4% of revenues.
The Other division includes Activision Blizzard Studios that makes original film and television content based on the company’s huge IP library. The segment also consists Activision Blizzard Distribution business.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Activision Blizzard, Inc ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $6,069.87, or a 506.99% gain, as of June 27, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 170% and the price of gold increased 50.92% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for ATVI.
Activision’s first-quarter 2023 earnings and revenues increased year-over-year. First quarter growth was broad-based, with net bookings increasing year-over-year in Call of Duty, Candy Crush, Warcraft, Overwatch, and Diablo. Call of Duty in-game net bookings on console and PC grew strongly year-over-year in the first quarter. Diablo Immortal on mobile and PC also contributed to Blizzard’s first quarter net bookings growth. Candy Crush payer numbers again grew year-over-year, and Candy Crush was the top-grossing game franchise in the U.S. app stores for the 23rd quarter in a row. Notably, Microsoft is set to acquire Activision Blizzard in an all-cash transaction valued at $68.7 billion. The deal is expected to close in fiscal year 2023. Shares of Activision have underperformed the industry year to date.
Over the past four weeks, shares have rallied 6.03%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
