Activision Blizzard's (ATVI or the Company) latest release, Call of Duty: Black Ops II, hit $1B in global sales last two weeks ago. The Company achieved this sales mark in just 15 days, breaking its own record held by Call of Duty: Modern Warfare 3, which took 16 days to hit the mark. Despite the impressive sales levels, ATVI stock seems to have priced Black Ops II as a non-event, confounding some bulls. After taking a closer look at the main drivers of ATVI, I believe most investors are ignoring:
- An aging and stale Call of Duty (COD) franchise
- A number of problems facing World of Warcraft (WOW) and the outsized earnings impact it can have
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