Activision Blizzard Inc. (ATVI): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Activision Blizzard ( ATVI) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole was unchanged today. By the end of trading, Activision Blizzard fell 27 cents (-2.4%) to $10.79 on average volume. Throughout the day, 7.9 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 7.7 million shares. The stock ranged in price between $10.73-$11.06 after having opened the day at $11.02 as compared to the previous trading day's close of $11.06. Other companies within the Technology sector that declined today were: Aetrium Incorporated ( ATRM), down 17.3%, Maxwell Technologies ( MXWL), down 16.9%, Rediff.com India ( REDF), down 15.9%, and VeriSign ( VRSN), down 15.5%.
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Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile interactive entertainment worldwide. It develops and publishes PC-based computer games and maintains its proprietary online-game related service, Battle.net. Activision Blizzard has a market cap of $12.31 billion and is part of the computer software & services industry. The company has a P/E ratio of 15.4, below the average computer software & services industry P/E ratio of 15.8 and below the S&P 500 P/E ratio of 17.7. Shares are down 10.1% year to date as of the close of trading on Thursday. Currently there are 16 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Activision Blizzard as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Motricity ( MOTR), up 29.2%, Applied Micro Circuits Corporation ( AMCC), up 26.2%, Recon Technology ( RCON), up 21%, and TeleCommunication Systems ( TSYS), up 17.3%, were all gainers within the technology sector with Adobe Systems ( ADBE) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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