Despite Call of Duty: Black Ops III, Activision Blizzard, Inc. (ATVI) Shares Plunge

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Activision Blizzard, Inc. (NASDAQ:ATVI) released Call of Duty: Black Ops III back in the beginning of November, and like many people expected, the game sold like hotcakes. However, this wasn’t enough to please investors yesterday when the company reported their fourth quarter earnings after the market closed. While they met the expectations of just about everyone, the company’s earnings unfortunately did not.

Activision Blizzard, Inc. (NASDAQ:ATVI) reported earnings of just $0.83 per share on $2.12 billion in revenue. This fell short of analysts’ expectations of $0.86 per share on $2.2 billion in revenue. In turn, the stock has taken a tremendous hit today in the pre-market, trading down 8.78% to $27.84. Unsurprising though, revenue from the entire Call of Duty franchise increased by double digits thanks to the release of Black Ops III.

Additionally, Activision Blizzard, Inc. (NASDAQ:ATVI)’s First Quarter guidance missed estimates as well, coming in at just $0.11 per share, well below Wall Street’s expectations of $0.18 per sahre. However, the company did say they expect $800 million in revenue for the quarter, exceeding the Street’s expectations of $744.79 million.

The stock increased 1.23% or $0.37 during the last trading session, hitting $30.52. About 127,154 shares traded hands. ATVI has risen 21.45% since July 9, 2015 and is uptrending. It has outperformed the S&P500 by 30.92%.

From a total of 19 analysts covering Activision Blizzard (NASDAQ:ATVI) stock, 17 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 89% of the ratings are positive. The highest target price is $47 while the lowest target price is $29.51. The mean of all analyst targets is $37.76 which is 23.72% above today’s ($30.52) stock price. Activision Blizzard was the topic of 36 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. Credit Suisse maintained shares on January 25 with a “Outperform” rating. Piper Jaffray maintained shares with a”Overweight” rating and a $36 target share price in their report from a September 28. KeyBanc Capital Markets maintained ATVI stock in a recent report from November 5 with a “Overweight” rating. Barclays Capital maintained the rating on September 15. Barclays Capital has a “Overweight” rating and a $35 price target on shares. Finally, Mizuho maintained the stock with a “Buy” rating in a report they issued on a November 4.

The institutional sentiment increased to 1.41 in Q2 2015. It’s up 0.20, from 1.21 in 2015Q2. The ratio improved, as 59 funds sold all their Activision Blizzard, Inc. shares they owned while 143 reduced their positions. 112 funds bought stakes while 172 increased their total positions. Institutions now own 519.78 million shares which is 7.31% more than the previous share count of 484.36 million in 2015Q2.

Dsam Partners Llp holds 10.17% of its total portfolio in Activision Blizzard, Inc., equating to 1.11 million shares. Shannon River Fund Management Llc owns 963,000 shares representing 5.53% of their total US portfolio. Moreover, Jag Capital Management Llc has 3.87% of their total portfolio invested in the company, equating to 661,123 shares. The New York-based Contour Asset Management Llc has a total of 3.86% of their portfolio invested in the stock. Egerton Capital (Uk) Llp, a United Kingdom-based fund reported 10.21 million shares owned.

Activision Blizzard, Inc. is a developer and publisher of online, personal computer , video game console, handheld, mobile and tablet games. The company has a market cap of $23.35 billion. The Firm offers games that operate on the Microsoft Corporation (Microsoft) Xbox One (Xbox One) and Xbox 360 (Xbox 360), Nintendo Co. It has 20.73 P/E ratio. Ltd. (Nintendo) Wii U (Wii U) and Wii (Wii), and Sony Computer Entertainment Inc. (Sony) PlayStation 4 (PS4) and PlayStation 3 (PS3) console systems.

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