For Activision Blizzard, 2020 will likely go down in history as a new record year. The stock reached its highest value ever.
While 2020 will likely be considered by most people as “Once is enough, please never again”, there are also some companies that will record 2020 as a record year. One of them is certainly Activision Blizzard, as their stock set a new record in 2020. The highest value ever was reached, as the stock is worth $90.37 (as of December 19, 2020). Thus, the stock has risen a whopping 17% in value since the release of WoW: Shadowlands.
A low was followed by a high: In 2018, things did not look so good for Activision Blizzard. After many negative reports and scandals, the stock plummeted and lost steadily in value from September 2018 to February 2019 – the stock lost nearly 50% during that time. Since then, it has gradually recovered, so that the value now stands at $90.37 and thus the highest value ever has been reached.
What is the reason for the success? There are probably many reasons for this. On one hand, Shadowlands was the fastest-selling PC game, breaking many records on the day of release. On the other hand, Activision Blizzard had not only WoW in store, but also other titles that could shine. The “Call of Duty” franchise, along with new Hearthstone expansions and games like Tony Hawk’s Pro Skater ensured that Activision Blizzard’s games were widely played.
Lastly, it should not be forgotten that the Corona crisis has also helped some companies. In times of social distancing and contact restrictions, many people stay at home and turn to video games for entertainment. Companies like Activision Blizzard benefit from being able to meet the needs of people at home.
What does the future look like? Speculation suggests that the coming year will be similarly successful for Activision Blizzard (and thus the stock). Although Corona is expected to be curbed by a vaccine, Activision and especially Blizzard have several major releases planned for the coming years, such as Overwatch 2, Diablo 4, or Diablo Immortal. Additionally, there are potential games, like “The Burning Crusade Classic”.
Do you consider the success of the stock and thus Activision Blizzard deserved? Or were the wrong ones “rewarded”?
