Congratulations, stocks sub 40!

Games & Technology
02/11/2019 02:35 PMPosted by Soma
I would say the D:I announcement has exactly 0 to do with this.


I liked your opinion. 3/10 for trying.
So if Actiblizzard stock hits $0 and the company goes bankrupt, there go the Diablo servers, shut off.?
02/11/2019 02:35 PMPosted by Avalon
I am not sure how the market works.


Extremely simple explanation: If more people are buying a stock than selling, the price will go up, if more are selling than buying, the price will go down.

Many factors go into why a stock price will change such as:
current quarter sales/profits vs. same previous quarter sales/profits
potential for growth
asset acquisition/dumping
changes in upper management, i.e. president, ceo, cfo, etc
current market trends
political/economic factors
potential lawsuits directed at the company

There are many reasons why ActiBlizz's stock price is down. Is D:I one of them? Maybe, but it would be a very small reason.

02/11/2019 02:35 PMPosted by Avalon
After Bobby Kotick does his tap dance for the investors after hours tomorrow, will the investors dump even more stocks?


It all depends on which way the numbers he releases are trending. If they give investors some confidence in the company's direction it could go up. If he can't paint a rosy picture with what he has, it could trend down further.

02/11/2019 02:35 PMPosted by Avalon
Could it go down to 30?


It could, but it has already lost like half of its value over the last 7-8 months. It would take a more bad news or consistent no news for it to free-fall too much further.

02/11/2019 02:35 PMPosted by Avalon
How do the investors know when to buy or sell?


Use all the numbers available, track current market trends, research the company's direction/competition/projected growth potential in their market.

Basically you are trying to gauge whether the stock is over or under valued. Buy low, sell high.
You people are taking this stock stuff with too far with absolutely no understanding of the actual impact at all.

Back in 2014 when everyone was still feeling decent about Blizzard, stock was in the low to mid $20's

Nothing to see here, move along
02/11/2019 05:15 PMPosted by Demonmonger
You people are taking this stock stuff with too far with absolutely no understanding of the actual impact at all.

Back in 2014 when everyone was still feeling decent about Blizzard, stock was in the low to mid $20's

Nothing to see here, move along


That's kinda what every fanboy in denial has been saying since the DI announcement.

"You don't know what you're talking about, stocks rebound!"
As they drop.
And drop.
....into freefall.
02/11/2019 05:15 PMPosted by Demonmonger
You people are taking this stock stuff with too far with absolutely no understanding of the actual impact at all.

Back in 2014 when everyone was still feeling decent about Blizzard, stock was in the low to mid $20's

Nothing to see here, move along
Back then things may have looked good and all.

Today, however, things are not.

A bit of context goes a long way.
02/11/2019 02:14 PMPosted by neo
I really hope investors pull out and put Activision Blizzard on their knees.

02/11/2019 04:35 PMPosted by Shogun
So if Actiblizzard stock hits $0 and the company goes bankrupt, there go the Diablo servers, shut off.?

Way too much forum negativity and I don't care attitude. "Mob mentality refers to the fact that people will act in unison with the behaviors of the others around them because they identify with the group in one way or another." Posts speaking out get downvoted. So what's next? Tencent Holdings acquires controlling interest in Activision-Blizzard? … as did with Grinding Gear Games (Path of Exile). Tencent was one of several big investors that helped Activision Blizzard CEO Bobby Kotick repurchase the company's shares from Vivendi in 2013. Tencent still owns a 5% stake in Activision,... Activision has a partnership with Tencent to launch a mobile version of Call of Duty in China. China is the world's largest gaming market, and mobile esports is getting popular...

https://www.fool.com/investing/2018/02/13/tencent-owns-stakes-in-these-4-us-companies.aspx
https://www.fool.com/investing/2019/02/03/activision-blizzard-in-3-charts.aspx
Activision Blizzard says layoffs are effort to focus on core games as earnings, forecast disappoint . ...said it expected $150 million in restructuring charges, and intends to focus resources on development of its most popular titles while stripping away some other efforts. “Increasing the flow and the frequency of compelling in-game content and upfront releases to serve the needs of our players is the No. 1 goal set by the new Blizzard leadership team going forward,” Johnson added.
https://www.marketwatch.com/story/activision-blizzard-says-layoffs-are-effort-to-focus-on-core-games-as-earnings-forecast-disappoint-2019-02-12
Hope this helps:
--------------------------
Activision Blizzard Inc. sunk to the lowest in two years ahead of fourth-quarter earnings results on Tuesday.

The stock fell as much as 7.3% after Benchmark Co. cut its price target to $68 from $87, citing expectations for fewer "product catalysts" and uncertainty around contributions from mobile and advertising.

Activision is planning layoffs that could number in the hundreds as part of a restructuring aimed at centralizing functions and increasing profitability, Bloomberg News reported on Friday. The video-game maker’s revenue is expected to decline by 2 percent in 2019, down from growth of 4 percent in 2018, according to the average of analyst estimates compiled by Bloomberg News. Adjusted earnings per share are expected to decline 3 percent in the same period, from growth of 14 percent in 2018.

From Bloomberg
----------------------------------------

Basically: 4% revenue growth is not good and probably below market expectation and it is expected to decline. Big no no. EPS increased 14%.
Comparing this results with Apple:
Apple EPS for the twelve months ending December 31, 2018 was $12.20, a 25.26% increase year-over-year.
Apple 2018 annual EPS was $11.91, a 29.32% increase from 2017.
Apple revenue for the twelve months ending December 31, 2018 was $261.612B, a 9.38% increase year-over-year.
Apple annual revenue for 2018 was $265.595B, a 15.86% increase from 2017.

In the end, for an investor it means: Why invest on Blizz/Act if I can get double profit on Apple.

Fewer product catalysts - the market does not expect Blizz/Act to launch any games that will sell a lot / dominate the market or open new markets.

Uncertainty about mobile and advertising - the market is not confident that games like DI will be a big hit and will sell a lot of micro-transactions.
02/11/2019 05:15 PMPosted by Demonmonger
You people are taking this stock stuff with too far with absolutely no understanding of the actual impact at all.

Back in 2014 when everyone was still feeling decent about Blizzard, stock was in the low to mid $20's

Nothing to see here, move along


2014 there was hope not now!!!!!!!!!!!!
You guys really think that the money they make from Diablo Immoral will be used to improve their PC games? Get a clue.
Blizzard is cellphone company now! Blizzcon speak for all!!!!!!!!!!!
Why are we celebrating?
Because of Diablo Immortal specifically?
Or just generally because they fired / let go the key creative talent behind Diablo, Warcraft etc.?
02/11/2019 05:15 PMPosted by Demonmonger
You people are taking this stock stuff with too far with absolutely no understanding of the actual impact at all.

Back in 2014 when everyone was still feeling decent about Blizzard, stock was in the low to mid $20's

Nothing to see here, move along

HAHA.
2011 the stock was $11 and 2013 it was $14, So yeah at $20 in 2014 they were tickled pink, it was hitting an all time high too. Going from $80 to $39 in about the same time frame paints a whole different picture.

Would you agree?
I’m not a fan of the stock market it’s a quick and easy way for companies to get a massive injection of capital to expand but then there is an expectation of continual and unending growth quarter after quarter. That’s impossible. No business can meet that expectation.

When you get a slow year, suddenly everyone flies into a panic firing spree cutting their own capacity to operate. Then when the market does pick up they are sluggish and miss out on opportunities or let down their customers because they had to “trim the fat”.

It’s amazing that Blizzard is a profitable business but despite that they are in a financial panic and their stocks are plummeting.

Activision looks to me like a ship without a captain following whatever path the blowing winds set for them.
02/11/2019 05:51 PMPosted by SilverFox
02/11/2019 02:14 PMPosted by neo
I really hope investors pull out and put Activision Blizzard on their knees.

Would you prefer Tencent Holdings to buy out Activision-Blizzard? Or perhaps Apple Inc?


Man I'm getting so tired of all the American companies selling out to Chinese conglomerates
02/11/2019 05:15 PMPosted by Demonmonger
Back in 2014 when everyone was still feeling decent about Blizzard, stock was in the low to mid $20's

Yeah, but back in 2014 even Blizzard thought that a Diablo game for mobile phones was an April Fool's joke...
https://us.diablo3.com/en/blog/13607363/ascend-to-victory-with-happy-reaper%E2%84%A2-4-1-2014
...nowadays, it's not so funny.
Is D:I one of them? Maybe, but it would be a very small reason.


Failing to release a new IP dedicated to worldwide audience for growth is not a small matter. Investors like global capitalism, not limited populism.

Investors took the outsourcing as a sign of being lazy and suppressing the criticism as a lack of confidence. What really happened was veteran developers getting tired of torture-like "crunch time" effort that goes into releasing a PC or any console title and they wanted a piece of mind on their own.
I still think Blizzard have lots of talented people but lacking good leaders. I hope those job postings find the right kind of people.
02/12/2019 08:42 AMPosted by naksiloth
Is D:I one of them? Maybe, but it would be a very small reason.


Failing to release a new IP dedicated to worldwide audience for growth is not a small matter. Investors like global capitalism, not limited populism.

Investors took the outsourcing as a sign of being lazy and suppressing the criticism as a lack of confidence. What really happened was veteran developers getting tired of torture-like "crunch time" effort that goes into releasing a PC or any console title and they wanted a piece of mind on their own.
I still think Blizzard have lots of talented people but lacking good leaders. I hope those job postings find the right kind of people.

agreed. when they downplayed the reception of DI and said publicly it was "not overwhelmingly negative" shareholders i'm sure took notice.

Apex Legends is not going to help any of this.

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