Activision Dinged by Analyst

Activision has been pushing to expand its sales overseas. That effort may well pay off this holiday season, Pachter said. But such good news may not be enough to help the company's stock in the short-term, he said.

"We ... expect negative investor reaction to year-over-year declines in U.S. sales," he said.

But Pachter remains positive on the company's long-term outlook and maintained his buy rating on its shares. The analyst has a price target of $18 on Activision's stock.

"We ... continue to believe that the company will generate significantly higher catalog sales next year from its strong lineup," he said.