Activision Stock Lower Despite Q3 Earnings, Revenue Beat

Still, analysts are bullish on the equity

Deputy Editor
Oct 30, 2020 at 9:44 AM
facebook twitter linkedin


The shares of Activision Blizzard Inc (NASDAQ:ATVI) are down 1.3% at $76.75 in pre-market trading, after reporting third-quarter earnings and revenue that topped Wall Street's estimates. Additionally, the videogame maker is set to release a new "Call of Duty" game in mid-November, which prompted an upbeat holiday season forecast and at least two bull notes. 

Specifically, Piper Sandler and Cowen and Company chimed in with price-target hikes up to $100 and $88, respectively. Analysts were already bullish on ATVI coming into today, with 19 out of the 22 calling it a "buy" or better. Plus, the 12-month consensus price target of $95.24 is a 22.5% premium to last night's close.

Today's negative price actions has the stock trading at its lowest level since Sept. 8, and the equity is facing pressure from its 120-day moving average for the first time since bottoming out below the $58 area during the broader market's mid-March pullback. Still, longer term, the equity is up 39.2% year-over-year.

However, the sentiment in the options pits is leaning bearish. Activision stock sports a 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than 97% of all other readings from the past year, implying a healthier-than-usual appetite for puts. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners