Positive Outlook for ATVI

Video games sales grew 6% in March after two  months of more than 10% declines.  This bodes well for Activision Blizzard  (ATVI).  ATVI upped its full year earnings last week citing strong demand for games like World of Warcraft and Call of Duty: Modern Warfare 2.  ATVI not only expects to earn 72 cents a share for the year, it plans to buy back up to $1 billion worth of stock and starts to pay dividend.

In looking at 1 year chart, ATVI hasn’t really performed well mainly due to quarterly loss as revenues declined.  There is an upward trend line that now is acting as a resistance level.  I am expecting ATVI to break this resistance level with the new optimism in gaming industry.  Now would be a great time to be going long on ATVI.

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