Investing in Videogame Stocks – Activision Blizzard

You may well be planning to play the Diablo 3 Market when the game is released but what about really investing in Blizzard or even other videogame publishers. An article called Investing in Video Game Stocks: A How-To Guide has appeared on which analysis some of the recent trends and what stocks are worth investing in.

In their article Activision Blizzard is placed as a Strong buy according to  Zacks Investment Research so perhaps this is something to pay attention to. As far as I know Flux has some cash invested in Blizzard so I’m pretty sure he watches the values carefully so he can make his millions 😉

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11 thoughts on “Investing in Videogame Stocks – Activision Blizzard

  1. The question now is: would you really invest money based on the advice of a website called

  2. i have staked some money in blizz as well , as far as it goes for me i made quite some money. hoping for an awesome year 2012

    still wanted to buy some more blizz shares back in november or december, i am really regretting not to do so

  3. If you’re banking on Diablo 3 making their stock price shoot up, you’ll be disappointed. Oddly enough, game companies’ stock typically doesn’t go up after a major release. For example, have you heard of Call of Duty: Modern Warfare 3? You know, it was the BIGGEST entertainment launch of ALL TIME grossing $400 million the first 24 hours? Well, their stock went down. Technically, it went up $0.20 for one day, then plummeted.
    Anyway, I’m just saying don’t buy video game stocks based on releases. It just doesn’t work. Its the most perplexing thing in the world. I guess that’s just how they’re expected to do business: releasing stellar products. Maybe they’re using some fancy Hollywood Accounting? For example, Harry Potter and the Order of the Phoenix grossed over $1 billion, yet they still ‘lost’ $167 million. How in the hell can you spend OVER a BILLION dollars on a movie?

    However, ATVI stock is near their 52-week low. The market is in an upswing right now, so if you want to buy, wait a few days for it to tick down closer to $12 or under $12 even, then you’ll secure larger gains 🙂

    So there ya go. Good luck.

    • Agree 100%.  Video game companies do not profit during a release the same way a drug company profits when a promising drug clears clinical trials.  Typically a game publishing company is putting out 1 best seller and 20 “bust” games – the result are tepid returns on equity.  Don’t buy ATVI for growth – you can, however buy to support the company.
      Just remember that you are supporting Bobby *cue Bobby eyes*

  4. Just a reminder to everyone: never invest money in any single company you couldn’t stand to loose. No matter how successful a company is, weird things happen (remember 2008), so while there’s a good chance you will make money, there’s also a small chance that it goes down the drain. If you’re saving up for your kids’ college, don’t do it buying Blizzard stock. If you’re saving up for a second car you ‘may want to buy at some point’, go crazy.
    Second reminder: never invest money you want to spend this year. No matter what anyone says, investing is not fast money unless you’re in the thick of it, really smart and fairly lucky. If you’re just your average person, think of reliable stock for stable companies as something that will slowly go up with some smaller ups and downs along the way. Be ready to ride out a recession if you have to, because if it’s a good company, it will eventually recover. (in fact, most solid tech portfollios are back up to their pre-2008 levels).
    With those two disclaimers in place: good luck

  5. Ok , here is the tip.

    Buy Activision Blizzard stock now. The stock will fly high in a few days time .

    Several reasons btw, not only D3 …But it takes time

    Never invest more than 5% in one single company though.

    The 3 main reasons and one general rule.

    Those sky toys bring in much more than the market expected,
    Diablo 3 launch will be followed up by extreme mass market hype: the game that makes REAL money and forbidden in Korea…
    COD Elite is a solid back up and alternative for long term profits.

    The market is played by idiots.

    • If you invest 5% in one company, you’ll have a portfolio of 20+ companies! Thats HELLACIOUS to manage! I say KISS: Keep It Simple Stupid. If you split your investments this much, you’re just gambling and not investing. Fewer investments is easier to manage, predict (obviously, within reason or we’d all be Warren Buffet), and when you do see the excellent gains you expect, you’ll realize those and exit with more cash in your pocket than if you’d spread yourself too thin. Not to mention commissions could eat into your profits if split too much.

      • Actually my portfolio is quite big.

        Individual stocks: 28.

        Investment groups and combined stocks/bonds around double that number.

        The second group is handed over to our banks.

        The first group me and my wife take care of.

        On average profits are around 6% in the last 6 years (per year of course). Highest was 7.8% and lowest was -0.9% (2008)

        In fact you need to SPREAD to be insured.

        I also have a quite huge % in gold stock (around 10%). Only sold gold twice in 15 years at … 250% :))) 

        As long as ATVI is not traded above $12.50, it is a pretty good deal atm.  


        • “On average profits are around 6% in the last 6 years (per year of course).”
          “I also have a quite huge % in gold stock (around 10%). Only sold gold twice in 15 years at … 250% :)))”
          So, 10% of your stock has gone up at least 250% in 15 years but your overall gains are only 6% annually?
          I’m no math whiz but it sounds like most of your gain is from gold and the rest of your investments are doing slightly worse than your average IRA.

  6. ATVI stock is a machine where WoW revenue supports Kotick’s nine-digit stock option windfalls.  That’s all it is.

  7. This company has traded between $10 to $12 FOREVER.  Yes, even during WoW xPacs, SC2, Call of Duty, Guitar Hero, Quake 4, etc… AND REMAINED FLAT.  It has a tepid dividend yield and trends BELOW the S&P500.  Why would this change now?  D3?  Please, that is just a small piece of Activision’s publishing pie.
    I remember telling a guy not to buy when a similar article ran in October.  At the time the stock was at $13.50.  It is now trading at $12.50.  Just buying an average company such as PM has yielded 13%+ growth over the same period.
    I’ve commented on this before and I will say it again:  THERE ARE MANY OTHER STOCKS TO PURCHASE BEFORE SPENDING A DIME ON ATVI.

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