Activision blizzard stocks drop & loses $3.7 billion after diablo immortal's disastrous announcement11/15/2023 ![]() ![]() This can primarily be attributed to the delay in launch of two much awaited games, implying that the company is likely to see slower earnings growth over the next several quarters, compared to earlier estimates.ĭespite the recent downward revision in our price estimate for ATVI stock, there is still a large room for growth, in our view. This marks a 15% cut to our price estimate for ATVI, and the nearly -400 bps change in P/E multiple. Given these changes to our revenues and earnings forecast, we have revised our Activision Blizzard’s Valuation to $94 per share, based on $3.72 expected adjusted EPS and a revised 25x P/E multiple for 2021. The company now expects its full-year 2021 EPS to be $3.70. We also lowered our earnings forecast to $3.72, compared to our earlier estimate of $3.85. We have revised the full-year 2021 sales forecast to be around $8.6 billion, in-line with the company’s guidance. We have also updated our model following the Q3 release. The company now expects Q4 revenues to be $2.78 billion and EPS of $1.29, compared to the consensus estimates of $2.95 billion and $1.39, respectively. But the company announcing a delay in the much awaited Overwatch 2 and Diablo IV game launches, clubbed with a miss on Q4 outlook didn’t sit well with investors. Both - revenue and earnings - were in-line with our estimates. The company recently reported its Q3 results with revenue rising 6% y-o-y to $1.9 billion and earnings of $0.72 on a per share adjusted basis, up 11% y-o-y. The stock price of Activision Blizzard (NASDAQ: ATVI) plunged over 14% in yesterday’s trading session (Nov 3). You can find more such useful comparisons on Peer Comparisons. Check out Activision Blizzard Stock Comparison With Peers to see how ATVI stock compares against peers on metrics that matter. While ATVI stock may see a rebound, it is helpful to see how its peers stack up. ![]()
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