Gaming Giant Activision Blizzard Stock Could Get Crushed [Again] Tonight
Activision Blizzard shares have slid an alarming 51% since October 2018. Tuesday’s earnings forecast is unlikely to bring any respite. | Source: Shutterstock
It’s been a brutal few months for Activision Blizzard Inc. stock. Shares have fallen 51% since in October 2018, with little sign of easing up.
Tonight, Activision reports its fourth-quarter earnings after the US market closes. It’s a make-or-break moment for traders who hope to see Activision come back fighting.
Activision Blizzard Inc. stock falls 51% since October. Source: Trading View
Expectations aren’t exactly high. Activision posted lackluster forecasts in the previous quarter and disappointed gamers with underwhelming releases. Not to mention strong competition from gaming juggernaut Fortnite and the threat of mass redundancies. The stock fell 7% alone yesterday as traders flee the gaming giant.
If tonight’s results fall below analyst forecasts, the stock could see another painful selloff.
“It’s awful, you gotta stay away from this stock”
Traders remain split on the stock. One analyst at Oppenheimer is particularly bearish on Activision’s prospects going into the earnings call. Ari Wald told CNBC, “you gotta stay away from this stock.”
Wald claims the gaming industry is in a bearish trend and the technical analysis confirms a negative picture. Activision stock, he said, failed to break its 50-day moving average and fell through a number of other technical indicators.
— Vios Advisors (@TheBapisGroup) February 11, 2019
During the same interview,