ATVI Stock Forecast: Why You Should Buy More Shares of Activision Blizzard

motek 1The ATVI Stock Forecast article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

  • Activision Blizzard’s YTD gain is already more than 12%. I’m still endorsing it as a buy.
  • Going long while ATVI trades at below $70 is highly recommended. My 1-year PT for this stock is $73.
  • The ongoing COVID-19 crisis is boosting U.S. video game sales to a decade high. This gaming bonanza is also happening in other countries.
  • The release of new mobile games will offset the declining player base of Activision’s PC games.
  • The COVID-19 crisis could also increase the monthly active users of Activision’s subsidiary, King Entertainment.

I am highly confident that the stock of Activision Blizzard (ATVI) has more upside potential this year.  I, therefore, reiterate the buy rating I gave ATVI last October 4. My fearless forecast is that the boom in video games during this global pandemic will help ATVI reach $73 within the next 12 months. My above-average IQ convinced me that quarantines around the world will force even non-gamers to become one. COVID-19, therefore, is a long-term tailwind for video game companies like Activision Blizzard.

ATVI’s October 4 closing price was only $55.44. It is now trading above $66. I won’t fault you if you take some profit-taking. However, I’m really optimistic that this stock deserves a one-year price target of 73.

(Source: Seeking Alpha)

You should go long on ATVI because management is really doing the things that I previously discussed several times before. ATVI is a golden long-term investment because management is now heeding my previous call demanding Activision should be more aggressive on mobile games. I argued before that Candy Crush Saga-branded games are no longer sufficient to keep Activision’s leadership rank in the trillion-dollar mobile industry (includes app sales, hardware sales, subscriptions, games).

(Source: Statista)

Why You Really Should Buy More ATVI

I previously concluded that the massive success of Call of Duty Mobile was enough to offset the stagnating monthly active users of King Entertainment. The forced stay-at-home quarantining of billions of people around the world is a boon for King Entertainment. You should add or buy more ATVI because there are now more active players of Candy Crush mobile games.

The Candy Crush Saga game’s estimated March 2020 net sales were $32 million from iOS and $24 million from Android.  No thanks to COVID 19, I am highly confident that Candy Crush Saga’s April combined net sales would reach as high as $62 million. The same could also be said for its May 2020. As far as I know, many countries around the world extended their lockdowns or quarantines up to mid or end of May.

A stronger revenue stream from Candy Crush Saga-related mobile games will result in excellent Q1 and Q2 FY earnings. No thanks to COVID 19, my fearless forecast for Fiscal 2020 is that Activision will gross $7 billion. This might seem lofty because 2019’s revenue was only $6.49 billion. As it was before, Activision beating quarterly/annual earnings estimates frequently resulted in a boosted stock price.

Better buy ATVI now because it will report its Q1 on May 5. My fearless forecast is that ATVI will probably reach $69 after earnings. It is already given that Q1 2020 numbers will be likely better-than-expected. This conclusion of mine is especially true when you understand the chart below.

Long-time ATVI holders or observers know all too well that the U.S. is Activision’s most important market. The stock will likely surge higher whenever those lazy but highly-paid funds start noticing the importance of the chart below.

(Source: Statista)

More Mobile Games Are Coming

Aside from the huge commercial success of Call of Duty: Mobile, the establishment of King’s Council last December convinced me that Activision is going big on mobile games. King’s Council is a player research community that would help Activision what most engaged (meaning most generous spenders) gamers want.

We all know that Activision is an amateur when it comes to making mobile games. Candy Crush Saga was made by King and Call of Duty: Mobile was developed by Tencent’s (TCEHY) subsidiary Timi Studio. The upcoming Diablo Immortal mobile RPG title is made by NetEase. King’s Council is Activision’s attempt to rectify the criticism I made before that it doesn’t know how to make hit mobile games. Going forward, King’s Council will likely help Activision’s (not King employees) games development teams eventually come up with in-house hit mobile games.

Conclusion

The correct way for small investors/swing traders is to buy before the big boys (hedge fund, mutual funds) start buying. Buy ATVI immediately because the chart above will ultimately catch the attention of fund managers. It is better ATVI below $67 before big investors start pushing it to above $68.

The buy rating I again give ATVI is also due to its very bullish one-year signal from I Know First. We should all trust the stock-picking, stock-predicting AI of I Know First. Doing so keeps us safe from becoming poor. Amen.

atvi stock forecast

Past I Know First Success with ATVI Stock Price Forecast

I Know First has been bullish on ATVI stock forecast in past predictions. The I Know First algorithm issued a bullish outlook on April 10, 2020. The algorithm successfully forecasted the movement of Adobe’s shares and has risen by 41.46% until this week. See the chart below.

atvi stock forecast
atvi stock forecast

This bullish ATVI stock forecast was sent to the current I Know First subscribers on April 10, 2020.

Here at I Know First, our AI-based algorithm has modeled and predicted assets price movement worldwide for short-term and long-term time horizons, ranging from 3 days to a year. Since 2011, we have been providing daily stock predictions, as well as a gold price forecast, currency forecast, S&P 500 forecast, and, in particular, AAPL stock news. Today, we are producing daily forecasts for over 10,500 assets, as well as articles such as Warren Buffet Investment Strategy. These forecasts generated by our quant trading tool are used by institutional clients, as well as private investors and traders to identify the best investment opportunities in the market.

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Please note-for trading decisions use the most recent forecast