ACTIVISION BLIZZARD GIVES WEAK 2019 GUIDANCE, STOCK TARGETING MA20
Activision Blizzard’s stock is currently trading at $43.57-higher by 4.56% as compared to the previous closing price. The company posted mixed fourth-quarter results on Tuesday and offered weak guidance for the first half of 2019.
The videogame publisher announced it would cut its workforce by about 8%, even as it boosts the number of developers by about 20% to increase new content. The company generated adjusted EPS of $1.29 for the fourth quarter, one cent above estimates. Revenue of $2.84 billion, however, was below the market expectation of $3.04 billion.
The company expects first-quarter EPS of 20 cents on revenue of $1.18 billion. Refinitiv consensus estimates projected EPS of 46 cents on revenue of $1.45 billion for the quarter.
On the technical front, the current price is above the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards. The current price is below the MA20. The RSI is currently at 43.58% and suggests that the market can move in the upward direction.
TRADE SUGGESTION- LIMIT BUY AT 43.35 TAKE PROFIT AT 44.35 STOP LOSS AT 42.85