Why Activision Blizzard (ATVI) Stock Is Down Today

NEW YORK (TheStreet) -- Activision Blizzard (ATVI) was falling 1.7% to $21.33 Tuesday following reports that Blizzard cancelled its unannounced next-generation MMORPG, Titan.

Blizzard co-founder and CEO Mike Morhaime confirmed that the team cancelled the World of Warcraft followup in an interview with Polygon. "We had created World of Warcraft, and we felt really confident that we knew how to make MMOs," Morhaime told the publication. "So we set out to make the most ambitious thing that you could possibly imagine. And it didn't come together."

Morhaime said the developer didn't "find the fun" or "the passion" in Titan, which led to its cancellation after a reevaluation period.

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"We took a step back and realized that it had some cool hooks," Chris Metzen, senior vice president of story and franchise development at Blizzard, said of the MMO. "It definitely had some merit as a big, broad idea, but it didn't come together."

TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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