Those invested in Activision Blizzard stock should be happy to hear that it is at its highest point since 1984. Wall Street Journal tech reporter Sarah Needleman reports an unprecedented high point for Activision Blizzard.
Since early 2020, the world at large has been grappling with the lingering COVID-19 pandemic. While its effects are causing strain on many, the gaming industry has been enjoying a major rise in demand for at-home entertainment, which is clearly shown by the historic stock uptick Activision Blizzard is currently experiencing. As a massive video game business, it benefits greatly from players staying indoors and purchasing new releases. Being the name behind major multiplayer games like Call of Duty and Overwatch, the company’s community is consistently growing.
Needleman’s tweet shows that as of January 20, Activision Blizzard shares are up 2.1 percent to $95.08. While this comes as unexpected news, Activision Blizzard shows no signs of stopping. Next month, the company will report its fourth quarter earnings, and with new game releases this will likely show even more positive effects. Further evidence comes from research firm MKM Partners, which said these strong results will continue into 2021 and has changed its price target for Activision to $105.
While the pandemic has certainly encouraged more people to buy and play video games, it is likely not the sole reason for the rise. Multiple releases that saw successes in 2020 also contribute to remarkable stock results. Launching popular titles like Crash Bandicoot 4: It’s About Time and Tony Hawk’s Pro Skater 1+2, also will have supported these gains.
Of course, one of the biggest contributors to the company’s success is the Call of Duty series. With entries coming out year after year, the brand has solidified itself as a necessary shooter to pick up. Between game sales, merchandise, and more, the Call of Duty series has made the company billions. As the industry moves into 2021, Activision Blizzard will surely have more games to reveal.
Even with MKM Partners predicting that stock will continue rising into 2021, this is by no means guaranteed. If vaccines manage to quell the COVID-19 pandemic and players are not inside constantly, game sales could recede. With next-generation consoles entering the picture, it is only a matter of time before a new multiplayer game dominates player interest. Plus, any potential game delays could put a damper on stock changes. That said, the current share is historic, and Activision Blizzard along with its stockholders will surely be celebrating.
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