blizzad stock prices drop from 84to44

Games & Technology
what has happened to the stock market on video games o well...
Well, EA and Activision were overvalued when they promise pipeline of great games coming up... Investors waited for months and they either released the !@#$test games or upcoming mobile games.

If a company that is known to manufacture cars out of the blue announces making toy cars, that is what will happen to its stock price.

Activision may contemplate selling its entire stake to some chinese cash rich conglomerate and cash out pretty soon.
The whole stock market is crashing... the dow jones is down 20+%
12/27/2018 06:43 PMPosted by Imperius
The whole stock market is crashing... the dow jones is down 20+%


While the Stock Market for tech companies is on the decline...

Activision-Blizzard and EA are suffering massively harder then others in the tech industry. They are dropping like rocks.
12/27/2018 09:10 PMPosted by TankHunter
Activision-Blizzard and EA are suffering massively harder then others in the tech industry.


True, Activision Blizzard down 44% from 52-week high and EA down 47% from 52-week high are both higher than most.

Ones that are higher are Snapchat (down 75%), NVIDIA (down 55%), Dropbox (down 52%), Zillow (down 51%), Micron (down 51%), and AMD (down 49%).

Most aren't as down as far. Facebook is down 38%, Alphabet (Google) is down 18%, Amazon is down 29%, Apple is down 33%.
12/27/2018 06:43 PMPosted by Imperius
The whole stock market is crashing... the dow jones is down 20+%


12/27/2018 09:56 PMPosted by Jinx
True, Activision Blizzard down 44% from 52-week high and EA down 47% from 52-week high are both higher than most.

Ones that are higher are Snapchat (down 75%), NVIDIA (down 55%), Dropbox (down 52%), Zillow (down 51%), Micron (down 51%), and AMD (down 49%).

Most aren't as down as far. Facebook is down 38%, Alphabet (Google) is down 18%, Amazon is down 29%, Apple is down 33%.


Thank you for helping spread some knowledge, @Imperius & @Jinx. But I think it's probably futile; these finger-pointers are convinced the announcement of a mobile game is crashing the DOW.
12/28/2018 09:17 AMPosted by Decay
Thank you for helping spread some knowledge, @Imperius & @Jinx. But I think it's probably futile; these finger-pointers are convinced the announcement of a mobile game is crashing the DOW.


Cause and Effect are lost on those trying to use one thing to blame it on everything.
You may talk about a ripple effect, but I still don't see how it would translate for the worse to ATVI directly. As ATVI isn't a part of DowJ (30 largest companies, says Wikipedia) and DowJ only went down 13.75% since October 3rd and recently it's on the rise. It started a real decline way after Blizzcon and Morhaime resigning however. So it's not a correlated action with ATVI stock plummeting.

Acti-Blizz dive down started at October with Morhaime resigning and followed by D:I announce or '18 Blizzcon; whatever you like. At these times, in NASDAQ market, software companies were mildly bullish so they had space to grow yet ATVI dived. You can not tell me fan backlash isn't any related to their stock falling looking at Bethesda and EA.

Acti Blizz simply announced they failed to give a new IP to the market for potential growth by "outsourcing" it. This is not a trust inducing word to close the year with. On top of that, investors may not like debacles arisen with this year's Blizzcon.
You can not blame usual flow of market just to dismiss the current events. Stop playing blind and blaming anti-mobile fans in circles. It's business you're talking about.
Game companies don't listen to the costumers. It means that a new gaming crash will happens.
You may talk about a ripple effect, but I still don't see how it would translate for the worst for ATVI. Dive down started at October with Morhaime resigning and followed by D:I announce. You can not tell me fan backlash isn't any related to their stock falling looking at Bethesda and EA.

Acti Blizz simply announced they failed to give a new IP to the market for potential growth by "outsourcing" it. This is not a trust inducing word. On top of that investors may not like data trading with China over a mobile app for selective ads. You can not blame usual flow of market just to dismiss the current events. Stop playing blind and blaming anti-mobile fans in circles. It's business you're talking about.


The whole stock market is in the midst of a massive pullback. Tech in particular is getting hammered. If you want to know why it got hit harder than the broader tech market, you need to look at a lot of factors. Did investors not like the blowback from Immortal? Duh. I divested the second I saw the announcement because I knew in the short term it would be really bad. The next trading day saw it drop ~7%. However (and unfortunately), I bought back in on that drop thinking that the blowback was over. It probably was. That was the right decision, but I didn't realize that the shareholders meeting would be so bad. The major bad news was year over year decline in revenues and a decrease in monthly active users. The reception for immortal really doesn't matter that much to investors because everyone realizes that this game is for the Chinese market that will eat it up. Diablo currently makes $0 for Activision Blizzard so investors are pretty meh about it. The IP and company's reputation being tarnished is an issue, but overall a mobile diablo game will be profitable, but probably not very much so in the west.

My bet, and I am not making any recommendations for anyone to invest in anything, is that when the market finds it's bottom, hopefully soon, Activision Blizzard's price will bounce back. When D4 is finally announced it'll renergise the fan base and stocks will rise further. The reality is that this Blizzcon should probably not have happened this year. They had no real exciting news. D4, according to recent leaks, was originally supposed to be revealed but a playable demo was unavailable so it was scrapped. However, had it never happened I really don't think the stock would be any better off than it is now.

Here are the realities:

  • The stock peaked the same time the broader market peaked, late september/early october.
  • The broader market saw massive declines starting around October 1, as did ATVI.
  • There was a big dip when it was announced that there would be no D4 (duh, I should have sold my shares here and saved myself some money). Investors were expecting a D4 announcement and the stock price was based on that assumption. This dip was a lot larger than the dip after Blizzcon.
  • The stock started going up a bit after that until the shareholders meeting (maybe 2%?). That's when the largest fall occured. Since then, it hasn't really done much of anything while the greater market has continued to fall.

What we can deduce from this is that while the announcement of Diablo Immortal did create a short term drop in stock price, other factors such as greater market volitility and a poor shareholders meeting report had a much bigger impact.

Looking at the chart, I think it's likely that ATVI has bottomed out and this is a good entry point. I am in no way suggesting anyone should buy it based on anything I've said here. Do some research on your own if you're thinking about investing in anything.
12/28/2018 10:43 AMPosted by L0rdV1ct0r
Game companies don't listen to the costumers. It means that a new gaming crash will happens.


I should hope not. Unless of course they are getting advice on the art assets for armor design.

12/28/2018 11:07 AMPosted by Kendis
The whole stock market is in the midst of a massive pullback. Tech in particular is getting hammered. If you want to know why it got hit harder than the broader tech market, you need to look at a lot of factors. Did investors not like the blowback from Immortal? Duh. I divested the second I saw the announcement because I knew in the short term it would be really bad. The next trading day saw it drop ~7%. However (and unfortunately), I bought back in on that drop thinking that the blowback was over. It probably was. That was the right decision, but I didn't realize that the shareholders meeting would be so bad. The major bad news was year over year decline in revenues and a decrease in monthly active users. The reception for immortal really doesn't matter that much to investors because everyone realizes that this game is for the Chinese market that will eat it up. Diablo currently makes $0 for Activision Blizzard so investors are pretty meh about it. The IP and company's reputation being tarnished is an issue, but overall a mobile diablo game will be profitable, but probably not very much so in the west.


I would agree with this. The whole tech sector crashed and there is no single thing to point blame at. If you ask WoW players the whole stock price drop for ATVI is due to BfA being a lackluster expansion. If you ask HotS players then it is due to forum/game moderation (really they have said that!), others blame loot boxes in OW and possible regulations.

Really, the answer is not any single one of those. All investors care about are profits. Period. DIE will likely be very successful in the Eastern Market that it was designed for. The fact many of us here won't play it, does not matter. Investors will still get their $$.

It still bugs me they lied at the quarterly meeting though and called the DIE reception "muted". Those boos were not muted!
12/27/2018 09:10 PMPosted by TankHunter
12/27/2018 06:43 PMPosted by Imperius
The whole stock market is crashing... the dow jones is down 20+%


While the Stock Market for tech companies is on the decline...

Activision-Blizzard and EA are suffering massively harder then others in the tech industry. They are dropping like rocks.


Nvidia stock lost ~50% of its value over the same period, but for somewhat different reasons.

It's just a correction. A lot of these companies were overvalued and so the market fixed itself. Also the federal reserve raising interest rates at the same time (thus less borrowing, less growth) doesn't help.
time to buy Blizzard stock :p

the tech stock that won't fall is spyware, anti-spyware and flying drones: the most popular terrorist toy for the next few years, i predict.
12/28/2018 10:10 AMPosted by naksiloth
You may talk about a ripple effect, but I still don't see how it would translate for the worse to ATVI directly. As ATVI isn't a part of DowJ


Correct, as ATVI is part of NASDAQ and not Dow Jones. The two Indices are separate things.

Dow Jones is only indicative of the overall stock market trends as it contains the 30 biggest companies in the world only which cross the gamut from Tech, to Manufacturing, Food, Defense, Telecommunication, Entertainment, Health Care, Financial Services, Oil, etc.

ATVI falling wont touch Dow Jones precisely because it is not in the list of companies in the Dow Jones. ATVI is not that rich.
12/29/2018 02:05 AMPosted by TankHunter
Dow Jones is only indicative of the overall stock market trends as it contains the 30 biggest companies in the world


Doesn't actually contain the 30 biggest companies -- Amazon, one of the most valuable companies in the world, isn't in the Dow Jones. Neither is Alphabet or Facebook. There's actually no specific rules for inclusion.

It's also a strange index because it's price-weighted rather than weighted by market cap of the company. This means that Boeing is the stock with the biggest influence on the index because its price of $316 is higher than any other Dow Jones member.
12/29/2018 02:05 AMPosted by TankHunter
Correct, as ATVI is part of NASDAQ and not Dow Jones. The two Indices are separate things.


12/29/2018 03:22 AMPosted by Jinx
Doesn't actually contain the 30 biggest companies -- Amazon, one of the most valuable companies in the world, isn't in the Dow Jones. Neither is Alphabet or Facebook.


Thank you.

12/28/2018 11:07 AMPosted by Kendis
Looking at the chart, I think it's likely that ATVI has bottomed out and this is a good entry point. I am in no way suggesting anyone should buy it based on anything I've said here.


I agree with this statement. It looks like it'll recover but you can never be sure.
12/28/2018 11:17 AMPosted by MissCheetah
I would agree with this. The whole tech sector crashed and there is no single thing to point blame at. If you ask WoW players the whole stock price drop for ATVI is due to BfA being a lackluster expansion. If you ask HotS players then it is due to forum/game moderation (really they have said that!), others blame loot boxes in OW and possible regulations.


Honestly its a combination of a lot of things, market related and company specific.

Investors who put real money into a companies don't just look at the financials. They also get a feel for the pulse by talking to insiders or people with knowledge of whats going on internally.

Now don't confuse that with saying inside information, because that is a technical term, I just mean they get a feel for how management is doing and other indicators of the pulse.

The problems that Blizzard is having is a top down thing and you better believe that some of the money is moving out because there are real internal issues going on. We are just seeing the symptoms of those issues w/ a poorly ran blizzcon, specific game issues, etc.

It actually does matter if people do not like your current games, or you are creating situations where large amounts of consumers no longer care about your products.
12/27/2018 05:58 PMPosted by Beast
what has happened to the stock market on video games o well...


If you are too dumb to construct a simple sentence, you are definitely too dumb to understand the intricacies of the stock market.
12/28/2018 10:43 AMPosted by L0rdV1ct0r
Game companies don't listen to the costumers. It means that a new gaming crash will happens.

What does Halloween have to do with it?

Illiteracy runs rampant on these forums.

Illiteracy will happens.
Doesn't matter, NASDAQ had a nose dive in the last month as well... The whole stock market is going down

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