Activision Shares Could Rise By 50%
If you're looking to get into the stock market, you might want to take an educated chance on Activision Blizzard.
According to Reuters citing Barron's, the game publishing kingpin could see a 50% rise in the price of its stock.
Activision shares are currently down about 10% this year and are trading at around the $11.25 mark, but that could rise significantly "due to new products and improved cost-cutting." One BMO Capital markets analyst now predicts the stock will hit $17. For the record, the publisher is debt-free and they repurchased shares in the first half of this year; the company also formed a partnership with Tencent Holdings, China's largest Internet provider, to bring a Call of Duty online iteration to market. It's expected to be quite popular.
The 10% fall in stock price this year has been attributed to a general slowdown in demand for packaged video games for use with traditional game consoles. The digital age is coming fast, after all.
8/5/2012 8:39:52 PM Ben Dutka