Activision-Blizzard reportedly planning hundreds of layoffs

Activision-Blizzard reportedly planning hundreds of layoffs

Activision-Blizzard reportedly planning hundreds of layoffs

Activision Blizzard's stock has fallen almost 50 percent since reaching an all-time high in October 2018.

Activision reported a net income of $650 million, or 84 cents per share in the fourth quarter ended December 31, compared to a loss of $584 million, or 77 cents per share, a year earlier when it recorded a charge related to US tax laws. Beta stand at 0.97.

Analysts are already responding to the bad news, with Benchmark dramatically cutting its price target to $68 from $87. This is in comparison to the average recommendation from a month ago, which was a Strong Buy with an average rating of 4.57. The smaller number of ABR is the more favorable.

The PE ratio of 25.43 helps investors explore how much they should pay for a stock based on its current earnings.

Activision Blizzard may soon announce layoffs in an attempt to boost profit, following lower sales in 2018 that has been felt too among other gaming giants. (NASDAQ:ATVI). Stevens First Principles Invest Advsrs reported 0% of its capital in Activision Blizzard, Inc. 3,413 are owned by Fiduciary Trust Company. EPS growth in next year is estimated to reach 0.38% while EPS growth estimate for this year is set at -7%. The mean target projections are based on 28 opinions.

Activision Blizzard (NASDAQ:ATVI) as of current trade, has shown weekly performance of -14.26% which was maintained at -21.89% in one month period. During the past three months the stock gain -38.38%, however six months performance of the stock remained at -43.11%.

Here we welcome to the world of short-term trend followers of Activision Blizzard (ATVI).

Representatives for Activision Blizzard say that employees who were laid off are being given a "comprehensive severance package, continued medical insurance, career coaching, job placement assistance", and profit sharing bonuses for 2018 for the Blizzard employees who qualify.

The stock institutional ownership counted 92.9% while insider ownership held at 0.7%. The ATVI switched 2.07% away from its 52 week minimum and distanced -48.74% from its 52 week peak. The company's stock now has a total float of 754.25M shares.

Epic Games's "Fortnite" has been a thorn in the side for Activision Blizzard. ATVI last reported earnings on November 08, 2018 when it released Sep-18 results that exceeded expectations. A low P/E can indicate either that a company may now be undervalued or that the company is doing exceptionally well relative to its past trends. Meanwhile, Activision has seen similar troubles, losing executives of their own and acknowledging a declining growth in games like Overwatch and Hearthstone. Analysts at Wall Street see Activision Blizzard, Inc.'s 159.57 % EPS growth compared to $0.47 earnings per share for previous quarter.

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