ACTIVISION BLIZZARD EPS BEATS ESTIMATES STOCK SINKS ON GUIDANCE
Activision Blizzard’s stock is currently trading at 47.11-lower by 4.92% as compared to its previous close. In the Premarket trading session on Friday, the stock was trading lower by 3.13%. The stock has continued falling after the opening bell.
The company reported its first-quarter earnings after the market close on Thursday. The videogame maker generated an EPS of 31 cents for the first quarter. The EPS was above the market expectation of 25 cents. Activision Blizzard brought in $1.26 billion in revenue for the first quarter. The revenue was above the consensus estimates of $1.23 billion.
The videogame maker expects adjusted revenue of $1.15 billion for the second quarter, which was below the market expectation of $1.28 billion. Activision Blizzard forecasts adjusted EPS of 23 cents for the current quarter which missed the consensus estimates by 14 cents.
The videogame maker issued weaker-than-expected second quarter guidance as it invests more money into its franchises to battle competition from blockbuster games like “Fortnite”.
On the technical front, the RSI is currently at 51.06% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 86% and suggests that the market can move in the downward direction.
TRADE SUGGESTION- STOP SELL AT 47.05 TAKE PROFIT AT 46.55 STOP LOSS AT 47.30