Activision Blizzard (ATVI) — This interactive game and software developer was formed via the 2008 merger of Activision and Vivendi Games. In late May, Vivendi sold 41.5 million shares of ATVI at $20.70. S&P said it believes Vivendi will be restricted from selling additional shares until 2016, and rates the stock a “four-star strong buy” due to the launch of the next generation of video game consoles by major manufacturers.
In the first quarter, the company reported record net revenues from digital channels, as well as record operating income and earnings per share. The consensus estimate is for full-year earnings to jump to $1.31 per share in 2014 from $ 0.94 in 2013. And analysts expect $1.43 per share in 2015.
Technically, ATVI is in a powerful new bull channel that began on June 9, when the stock broke from a bullish “V” formation. The trend is supported by strong volume and a new buy signal from MACD.
My trading target is $28, but investors who hold ATVI to participate in the long-term growth of the home entertainment sector will likely receive a higher return on their investment.