The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Activision Blizzard: All Eyes on Earnings Report
Information is not investment advice
What will happen?
Activision Blizzard, the developer, and publisher of interactive entertainment content and services will present its earnings report for the second quarter on August 3 after the stock market closes at 23:00 MT. The release will be followed by an investor conference call at 23:30 MT, August 3.
Prehistory
Activision Blizzard faced a scandal last week that had a negative effect on the company’s workflow and reputation. The unrest was caused by the company’s staff as women complained about drunken harassment by male colleagues or supervisors, the culture of ignoring complaints and retaliation, and the widespread discrimination in areas such as equal pay and promotion opportunities. The stock fall by 9%. It is a pretty solid reaction to that kind of news. The company’s management promised to solve this problem, so investors might feel positive about the future.
What to expect from the Q2 earnings report?
Game companies face low growth expectations this year as they showed incredible growth during the pandemic. For Q2, Activision Blizzard expects bookings to be $1.85 billion, down from $2.08 billion in Q2 2020. Call of Duty faces a difficult year-over-year comparison, as last year's launch of Warzone led to strong crossover sales of Call of Duty: Modern Warfare.
At the Q1 conference call management informed investors about the company’s plans. It was planned to increase marketing costs in Q2 and this will pressure operating earnings.
Another fact which disturbs investors is Take-Two interactive software earnings announcement. After the company presented its Q2 earnings report, the stock price dropped by 4% on the post-market since revenue fell by 2% and sales dropped by 4% compared with the same period of 2020.
On the other hand, Activision raises revenue forecasts as of late, which usually tells about upcoming earnings growth. After all, when analysts raise estimates right before earnings, they give traders and investors the most up-to-date information possible, so that they can catch some favorable trends.
Technical analyses
Daily chart
At the moment, the ATVI stock is trading above the $83 support. RSI oscillator locates below 30, which might be the bullish signal. If Activision Blizzard presents a strong report, the price will fly to $90. Otherwise, it might drop down to $76, which will be the perfect level to think about long trades.
Similar
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
US Interest Rate Slowdown?
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
Popular
United Nations Call the Fed to Cut Rates
A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession.
It’s Time to Look at New Zealand
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
The CAD vs. the World: Mid-Term Scenarios for the Currency
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
Choose your payment system
