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Activision Blizzard Has Lost Significant Value since October

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Stock has fallen 32% since October

Activision Blizzard (ATVI) stock fell 9.9% in after-hours trading to close at $56.60 on November 8. The stock is currently trading 33% below its 52-week high of $84.68. Activision Blizzard has lost significant value since the start of October.

While the SPDR S&P 500 ETF (SPY) fell 6.9% last month, ATVI stock fell 17% in October. ATVI lost 11% in the first half of October driven by the broader market sell-off. On October 18, the company stated that sales of Call of Duty: Black Ops 4 had totaled over $500 million in the three days following the game’s launch.

According to estimates, the game should have made ~$630 million worth of sales within the first three days of its launch. The difference saw the stock fall 8.3% on October 18.

However, Black Ops 4 was the third most watched game on Amazon’s (AMZN) Twitch last month. Will this popularity lead to another esports league along the lines of Overwatch? Strong viewership on game streaming sites may also indicate robust future sales for gaming titles.

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Activision’s Diablo Immortal fiasco

ATVI shares fell 6.7% on November 5 after fans’ negative reactions to the company’s Diablo Immortal mobile game announcement. Bloomberg expects this game to generate $300 million in annual revenue for Activision.

Activision Blizzard stock has wiped out significant investor returns and is trading at a 52-week low.

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