Why Activision Blizzard Stock Gained 15% in September

What happened

Shares of video game giant Activision Blizzard (NASDAQ: ATVI) outpaced the market last month, rising 15% compared to a 0.4% increase in the S&P 500 , according to data provided by S&P Global Market Intelligence .

The rally pushed the stock well ahead of the market and rival Electronic Arts  so far 2018.

^SPX Chart

^SPX data by YCharts .

So what

Investors are becoming more optimistic that Activision will dominate sales charts during the upcoming holiday season. EA had to delay its Battlefield V release last month, which means Activision's newest Call of Duty: Black Ops title will face a less competitive market in the critical weeks leading up to Black Friday. The video game developer also appears to have a strong contender in the battle royale genre that's set to release in the next few weeks.

Four young adults playing video games.

Image source: Getty Images.

Now what

A big launch for Call of Duty: Black Ops 4 might lift Activision's results above the 2018 outlook that CEO Bobby Kotick and his executive team issued in early August . Beyond that, shareholders are looking forward to continued growth in sales and profits as Activision bolsters its deep portfolio of gaming franchises while benefiting from the digital spending shift that's turning video games into recurring revenue generators.

Find out why Activision Blizzard is one of the 10 best stocks to buy now

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)

Tom and David just revealed their ten top stock picks for investors to buy right now. Activision Blizzard is on the list -- but there are nine others you may be overlooking.

Click here to get access to the full list!

*Stock Advisor returns as of August 6, 2018

Demitrios Kalogeropoulos owns shares of Activision Blizzard. The Motley Fool owns shares of and recommends Activision Blizzard. The Motley Fool recommends EA. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Stocks
Referenced Symbols: ATVI

More from Motley Fool


Motley Fool

Motley Fool

Market News, Investing

Research Brokers before you trade

Want to trade FX?