Digital sales rose marginally in 3Q17
Activision Blizzard’s (ATVI) digital sales in 3Q17 rose less than 1% YoY (year-over-year) in 3Q17 to $1.35 billion. In the first nine months of 2017, digital sales rose 33% YoY to $5.5 billion. Digital sales accounted for over 83% of total revenue in 3Q17. In the first nine months of this year, retail revenue fell 27% YoY to $1.07 billion.
King Digital drove revenue growth in 2017
Activision drove the firm’s revenue in 3Q17 with sales rising 101% YoY to $759 million. King’s revenue rose 15% YoY to $528 million while Blizzard’s revenue fell 27% YoY to $531 million. In the first nine months of this year, King Digital reported revenue of $1.91 billion, a rise of 67% YoY.
At the end of 3Q17, Activision accounted for 37% of total revenue, followed by Blizzard and King at 34% and 29%, respectively.
Over $1 billion of in-game revenue in 3Q17
In 3Q17, Activision Blizzard generated over $1 billion from in-game revenues. The Activision segment posted record revenue in the quarter ended September 2017. Further, King’s paying players rose for the first time since 1Q16 while gross bookings per paying user rose for the ninth consecutive quarter.
Of the 27 analysts covering Activision (ATVI), 20 have recommended “buy,” none have recommended “sell,” and seven have recommended “hold.”
Activision Blizzard (ATVI) is one the major players in the eSports segment, which is in a nascent stage. Riot Games, which is backed by China’s (FXI) Tencent (TCEHY), also has an eSports tournament for League of Legends.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.