It appears as if the coronavirus pandemic has helped the home entertainment world. More people are streaming movies, series, and playing video games. With help from quarantines and lockdowns, Activision (ATVI) smashed quarterly estimates.
Share prices have surged 5.94% during after hours trading and are currently at $72.60.
"Our goal to connect the world through epic entertainment is more important to our players than ever before," said Bobby Kotick, Chief Executive Officer of Activision Blizzard. "We delivered strong financial results for the first quarter, and are raising our full year outlook. I have been awestruck by the strength of our employees and their families during this difficult time. Whether managing healthcare or childcare, performing public service or community service, our teams around the world have shown ingenuity and resilience. In the face of so many difficulties, our employees have made certain that the joy, the engagement, and the benefits of gaming remain an effective way to help keep our 400 million players around the world connected and safe."
Source: Yahoo Finance
First quarter earnings, which includes months January through March 31, 2020, were solid.
The video game company reported net bookings (amount of products and services sold digitally or physically) were $1.52 billion, which is up from $1.26 billion for the first quarter of 2019.
Digital net bookings were $1.36 billion, which also increased compared to $1.07 billion for the first quarter of 2019.
Lastly, In-game sales were $956 million, as compared with $794 million for the first quarter of 2019.
Positive sales growth has been an uncommon trait as of late and it's good to see that some companies have been able to grow.
Activision's stock previously had a 52-week high of $69.93, which they've crushed reporting their Q1.
It is important to note that the company was trading at a 52-week low of $41.84 in February before the coronavirus pandemic struck. It's positive news for the company to report growing sale numbers, but it's not exactly clear how sustainable they'll be once quarantines and lockdowns are over.
Not all of the company's success can be said to be from Covid-19. Their new Call of Duty® game has certainly helped as the franchise continues to gain popularity. The company's famous World of Warcraft® has continued to maintain and grow momentum, which generated higher sales.
Shares reached an all time high of $83.44 back in October of 2018. The company has proven that they can make blockbuster video games and have demonstrated success for years. Share prices still have room to grow if the sales can keep up the pace.
As usual, make sure to do your research before investing, financial movers.
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DISCLAIMER: This article does not contain financial advice. Any and all market analysis is solely the authors opinion. Investors should do their own research before making any investment.