Activision Blizzard Stock: 7 Key Figures to Watch in 2023

Activision Blizzard, one of the leading video game publishers in the world, has been making headlines recently due to its highly anticipated merger with Microsoft. While the deal has yet to be finalized, investors are eagerly watching the company's stock performance. In this article, we will delve into 7 key figures that are essential for understanding the health and future prospects of Activision Blizzard's stock.

1. Revenue: $8.82 Billion in Q3 2022

Revenue is a crucial indicator of a company's financial performance. In the third quarter of 2022, Activision Blizzard reported revenue of $8.82 billion, representing a 2.1% increase year-over-year. This growth was primarily driven by strong performance from the company's mobile games, such as Call of Duty: Mobile and Candy Crush Saga.

2. Net Income: $1.52 Billion in Q3 2022

Net income is the amount of profit a company earns after deducting expenses from revenue. In Q3 2022, Activision Blizzard reported net income of $1.52 billion, a 12.3% decrease from the same period in 2021. This decline was attributed to increased spending on game development and marketing.

3. Earnings Per Share: $0.78 in Q3 2022

Earnings per share (EPS) is a metric that represents the amount of profit earned per share of common stock. In Q3 2022, Activision Blizzard's EPS was $0.78, a 12.8% decrease year-over-year. This decline was consistent with the company's reported decrease in net income.

4. Cash and Cash Equivalents: $10.4 Billion as of September 30, 2022

Cash and cash equivalents represent the liquid assets that a company has available to meet its short-term obligations. As of September 30, 2022, Activision Blizzard had $10.4 billion in cash and cash equivalents, providing the company with a strong financial cushion.

5. Debt: $4.5 Billion as of September 30, 2022

Debt is the amount of money that a company owes to creditors. As of September 30, 2022, Activision Blizzard had $4.5 billion in debt, a moderate level of indebtedness for a company of its size.

6. Price-to-Earnings Ratio: 17.5x as of February 23, 2023

The price-to-earnings ratio (P/E ratio) is a valuation metric that compares a company's stock price to its earnings per share. As of February 23, 2023, Activision Blizzard's P/E ratio was 17.5x, which is relatively low compared to the industry average. This suggests that the company's stock may be undervalued.

7. Forward Price-to-Earnings Ratio: 15.5x as of February 23, 2023

The forward price-to-earnings ratio (F/P ratio) is a valuation metric that compares a company's stock price to its projected earnings per share for the next 12 months. As of February 23, 2023, Activision Blizzard's F/P ratio was 15.5x, suggesting that analysts expect the company's earnings to grow in the upcoming year.

Factors to Consider for Future Stock Performance

In addition to the key figures discussed above, there are other factors that investors should consider when evaluating the future prospects of Activision Blizzard's stock:

• Continued growth in mobile gaming: Mobile gaming is a rapidly growing market, and Activision Blizzard is well-positioned to capitalize on this trend with its strong portfolio of mobile titles.
• Success of new game releases: The company's upcoming game releases, such as Diablo IV and Overwatch 2, have the potential to drive significant revenue growth.
• Regulatory approval of Microsoft merger: The merger with Microsoft is expected to create a gaming giant with a combined revenue of over $30 billion. However, the deal is still subject to regulatory approval, which could potentially impact Activision Blizzard's stock price.

Key Takeaways

Activision Blizzard is a leading video game publisher with a strong financial position and a promising future. The company's key financial figures suggest that its stock may be undervalued, and analysts expect its earnings to grow in the upcoming year. However, investors should also consider factors such as the continued growth of mobile gaming, the success of new game releases, and the regulatory approval of the Microsoft merger when making investment decisions.

Useful Tables

Table 1: Activision Blizzard's Key Financial Metrics

Table 2: Activision Blizzard's Historical Stock Performance

Table 3: Activision Blizzard's Upcoming Game Releases

Table 4: Activision Blizzard's Competitors