Aug 11, 2020
Should you Invest in Activision Blizzard?
OVERVIEW
Activision Blizzard Incorporation is an interactive video game company. The company designs, manufactures, and sells several popular games like Candy Crush, Call of Duty, and World of Warcraft. The company produces video games for mobile devices, PC’s, as well as proper video game consoles.
Why You Should?
1. The COVID-19 Pandemic has led to a spike in demand for video games. Activision Blizzard has been positively benefited through these times as the company sees a rise in sales for its products.
2. Activision Blizzard designs several popular games like Call of Duty and Candy Crush. This positive consumer experience benefits the company as they see higher sales than other competing games. For example, their Candy Crush Saga has received the People’s Choice Award for Favorite Mobile Game.
3. Before this pandemic, there has been a rise in popularity for video games. This popularity has seen the sales of video game giants like Activision Blizzard rise over time. This will continue to benefit the company in the future.
Why You Should Not?
1. One issue of investing in a video game designer like Activision Blizzard is the fact that they need to continue researching and developing new games as older games lose popularity over their consumer base. This causes the company to reinvest more profits than other companies need to. This leads to lower possible investor returns.
2. Activision Blizzard still has competition in the video game space. Companies like EA directly compete with each other. This might hurt the company’s growth in the future.
MY OPINION
In my opinion, I think that Activision Blizzard is a good long term investment due to the spike in popularity of video games. However, investors should know that Activision Blizzard has strong competition from other companies.
