Activision Blizzard to lay off hundreds of staff

Cornelia Mascio
Febbraio 12, 2019

In context: In what's been a turbulent year for the publishing giant, seeing stagnating growth in key titles such as Overwatch and Hearthstone, as well as losing the Destiny IP, Activision is reportedly planning a restructuring effort aimed at increasing profitability. Analysts at Deutsche Bank, started covering the stock on January 22 with a Hold rating.

Analysts are already responding to the bad news, with Benchmark dramatically cutting its price target to $68 from $87.

ATVI's 50 day simple moving average (SMA 50) price is $47.34 and its 200-day simple moving average (SMA 200) price is $66.11.

As a general matter investors should not rely exclusively on an analyst's recommendation when deciding whether to buy, sell or hold a stock. The consensus now stands at a Hold while its average price target is $60.54.

Tracking the closing price and 52-week high, the current price movement shows that the stock price positioned negative when compared against the 52-week high.

Activision Blizzard (ATVI) attained alert from day Traders as RSI reading reached at 39.96. During the trading session, a total of 44.62 million shares were traded which represents a -272.18% decline from the average session volume which is 11.99M shares. There are 19230407 shares which are traded on hands in the recent trading session.

It goes without saying that this isn't the first time Blizzard Activision has let go of people.

We are unsure what the future of Activision Blizzard will look like, but we do know the company wants to focus on releasing games more often to increase profits. The shares traded as low as $42.88 and had $43.93 an intraday high earlier Friday. It is rumored that the date was chosen to align with the company's quarterly earnings call, allowing for some news of cost-cutting to be relayed to investors.

Despite the apparent belt tightening, Activision Blizzard saw fit to award its new chief financial officer, Dennis Durkin, a bonus worth $15 million for accepting the job, on top of his $900,000 salary and $1.35 million target bonus. In the second quarter a year ago, the firm recorded $0.41 earnings per share. The firm had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.66 billion. Activision Blizzard, Inc. has the potential to record 1.58 EPS for the current fiscal year, according to equities analysts. (NYSE:COTY) is now rated as Neutral. Analysts have expectation on stock's earnings per share of $1.22.

The short ratio in the company's stock is documented at 1.40 and the short float is around of 2.23%.

Through the past nine calendar days, The Hershey Company (NYSE: HSY) stock was recorded as generating a Historic Volatility of 10.56%.

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