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

This 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.

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.

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This 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.

The success of Call of Duty: Mobile on Android and iOS convinced me that Activision Blizzard will remain of the biggest beneficiaries of the $152 billion/year video games industry.
Tablet and smartphone games now account for more than 44% of the annual sales from video games. The smartphone is now the key growth driver for video games.
Activision Blizzard will launch the Switch version of its hit PC game Overwatch on October 15. I expect Overwatch to also launch on Android/iOS by next year.
A stronger focus on the mobile platform can significantly boost Activision’s annual revenue and net income.

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The 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.

Activision bought King Digital because of its highly successful Candy Crush Saga mobile game.
The $5.9 billion gamble to own King Digital was judicious. King’s five-year old Candy Crush Saga still generates net monthly sales of $70 million.
It means Candy Crush Saga still touts around $100 million in monthly bookings.
The strong monetization is due the live in-game events that King Digital implemented in Candy Crush Saga.
In-game events encourage players to play longer. Candy Crush Saga is energy-based so players will have to spend real dollars if they want to play longer every day.