Activision Blizzard Stock Sinks 15% After Earnings Report, Erasing ~$10B In Market Value
All the drama surrounding Blizzard must be having an impact on the company, as Activision Blizzard stock plunged 15% the day after releasing their earnings, down almost $12 per share, which wiped nearly $10B from the company's market cap (market value of the entire company).
While Revenues were in-line with Wall Street expectations ($1.88B), profits were actually higher than expected ($639M profit) , but the company's forecast for Q4 was much weaker than expected. Analysts were expecting $2.92B in revenue for Q4, but Activision Blizzard came out today and said they expect only $2.78B. This is a massive difference for a company that's long bene touted as a high-growth gaming company. Backlash from Blizzard's community is clearly having some impact on the company's forecast.
The company is also expecting a later launch date than originally expected for World of Warcraft's revenue and engagement was at a decade high for period outside of a modern expansion year (thanks to the continued success of Classic).
Monthly active s company-wide were 390 million. Activision had 119 million; Blizzard had 26 million; and King had 245 million.
Further Reading: Activision Blizzard Q3 2021 Investor Presentation
