Morningstar Rating

Stock Research and Analysis

by Neil Macker, CFA

Bulls Say

Activision has established a record of creating multi-billion-dollar franchises and consistently develops new revenue streams through innovative value-added methods.
Destiny--the first new franchise from Bungie since the smash hit Halo--should drive significant sales growth and gain and hold on to a large user base.
Skylanders and Call of Duty are still likely to generate the majority of console sales, and Destiny is expected to remain as one of the marquee titles for the current generation consoles, driving sales. Read more 

Bears Say

Further subscriber declines for World of Warcraft could disproportionately affect Activision's profitability.
Activision entered mobile gaming well after some of its peers, which could put it at a disadvantage to competitors like EA that are increasing user engagement through cross-platform strategies.
Competitors have emulated Activision's strategy of streamlining investments into a few titles to develop deeply immersive and engaging games that can compete with Activision's biggest franchises. Read more 

Management

We rate Activision's stewardship as standard. We believe that CEO Robert Kotick has protected the firm's autonomy and acted in the best interests of shareholders in the buyout of the Vivendi stake. Previously the chairman and CEO of Activision, Kotick   Read more 

Profile

Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers.  Read more 

Danoff, Davis, Lynch: Stock-Picking Ahead of the Crowd 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.