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In spite of beating Q3 estimates, lifting 2011 guidance, and receiving positive ink from...

In spite of beating Q3 estimates, lifting 2011 guidance, and receiving positive ink from Deutsche and others (I, II), Activision (ATVI -4.8%) is selling off today. One area of concern is an 800K Q/Q drop in World of Warcraft subscribers, to 10.3M. World of Warcraft subs pay $15/month, and Activision's cost of sales for the game amounted to less than $60M in Q3, making it a huge cash cow. (transcript)
Comments (2)
  • Rocco Pendola
    , contributor
    Comments (6132) | Send Message
     
    I used to own lots of ATVI. It might be one of the market's most frustrating stocking. Not sure what holds it back, but it might have something to do with the Vivendi relationship. Too bad-- good Santa Monica company.
    9 Nov 2011, 10:38 AM Reply Like
  • Patrick Rooney
    , contributor
    Comments (41) | Send Message
     
    I bought ATVI back at its 52-week low of around $10.40 and have kept it ever since. Citigroup has ATVI hitting $16.00 before Christmas and I've made a DCF model expecting ATVI to hit around $15.85 by Christmas so even after today's market I'm still holding onto ATVI. Great company though. Looking to sell around $15.90.
    9 Nov 2011, 05:27 PM Reply Like
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