Activision Blizzard (ATVI) Stock Closes Up After Adding New Vehicles to Its Toys-to-Life Game

NEW YORK (TheStreet) -- Shares of Activision Blizzard (ATVI) closed up 1.68% to $25.96 after the company said today that it will add 20 new vehicles to its popular toy-to-life game "SuperChargers," which is part of the company's $3 billion Skylanders series.

The California-based company develops and publishes online, personal computer, video game console, handheld, mobile, and tablet games worldwide.

"We created the toys-to-life category and have continued to lead it by bringing new innovations and new magic to the genre with each and every game," said Eric Hirshberg, CEO of Activision Publishing, a subsidiary of the company. "First we brought action figures to life, and now we're bringing vehicles to life."

This move comes as competition grows in the toys-to-life category, with Walt Disney Co. (DIS) and Nintendo (NTDOY) having introduced rival toy-game hybrids, since 2011, when Activision Blizzard first introduced Skylander, according to The Wall Street Journal.

The game, which also includes 20 new "SuperChargers" characters, will be available in North America on late September, the company said.

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

"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 15.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 32.50% and other important driving factors, this stock has surged by 26.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ATVI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ACTIVISION BLIZZARD INC has improved earnings per share by 32.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACTIVISION BLIZZARD INC increased its bottom line by earning $1.14 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($1.24 versus $1.14).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 34.5% when compared to the same quarter one year prior, rising from $293.00 million to $394.00 million.
  • You can view the full analysis from the report here: ATVI Ratings Report

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