Should you buy Activision Blizzard (NASDAQ:ATVI) based on current technical indicators?


USD 74.41  0.46  0.62%   

As many baby boomers are indifferent towards communication services space, it makes sense to concentrate on Activision Blizzard against current market trends. As we have suggested previously, Activision Blizzard is beginning its drop as stockholders shift to be more bearish due to the increased sector volatility. The returns on the market and returns on Activision Blizzard appear somewhat related for the last few months. Stable basic indicators of the company may also hint to signals of long-run gains for Activision stockholders. The stock goes through above-average trading activities.
Published six days ago
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This firm's average rating is Buy from 21 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Activision Blizzard market sentiment investors' perception of the future value of Activision. Let us look at a few aspects of Activision technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Activision Blizzard. In general, we focus on analyzing Activision Blizzard stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Activision Blizzard's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Activision Blizzard's intrinsic value. In addition to deriving basic predictive indicators for Activision Blizzard, we also check how macroeconomic factors affect Activision Blizzard price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Activision Blizzard's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Activision Blizzard in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Activision Blizzard. Your research has to be compared to or analyzed against Activision Blizzard's peers to derive any actionable benefits. When done correctly, Activision Blizzard's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Activision Blizzard.

How does Activision Stands against Peers?

Analyzing Activision Blizzard competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Activision Blizzard across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Activision Blizzard Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Activision Blizzard, but it might be worth checking our own buy vs. sell analysis

Acquisition by Yang Jesse of 3110 shares of Activision Blizzard subject to Rule 16b-3

Legal trades by Activision Blizzard insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Activision insider trading alert for grant of common stock par value 0.000001 per share by Jesse Yang, Chief Accounting Officer, on 15th of November 2022. This event was filed by Activision Blizzard Inc with SEC on 2022-11-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another angle On Activision Blizzard

The company has a beta of 0.3051. Let's try to break down what Activision's beta means in this case. As returns on the market increase, Activision Blizzard returns are expected to increase less than the market. However, during the bear market, the loss on holding Activision Blizzard will be expected to be smaller as well. The beta indicator helps investors understand whether Activision Blizzard moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Activision deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Activision Blizzard reported the previous year's revenue of 7.36 B. Net Income was 1.67 B with profit before overhead, payroll, taxes, and interest of 6.49 B.

Our take on Activision Blizzard small drop

Current kurtosis is at 1.21. Activision Blizzard exhibits very low volatility with skewness of 0.33 and kurtosis of 1.21. However, we advise investors to further study Activision Blizzard technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Activision Blizzard's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Activision Blizzard's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Activision Blizzard

While some companies in the electronic gaming & multimedia industry are either recovering or due for a correction, Activision Blizzard may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 24th of November 2022, we believe that at this point, Activision Blizzard is very steady with very small odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our ongoing 90 days buy vs. sell advice on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Activision Blizzard. Please refer to our Terms of Use for any information regarding our disclosure principles.

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