After the recent Microsoft (NASDAQ:MSFT) deal announcement, Activision Blizzard (NASDAQ:ATVI) stockholders should’ve breathed a sigh of relief. The past few months have been terrible for Activision Blizzard. Corporate scandals and delays in some of its major gaming titles have haunted the company. To make matters worse, its active user base growth has slowed over the past few quarters. Hence, the Microsoft announcement couldn’t have been at a better time for the company but that doesn’t mean that ATVI stock is a safe bet.
Activision is one of the top video game producers globally, concentrating on some of the most popular franchises. On top of that, it is one of the most profitable companies globally, having eight franchises producing over $1 billion in revenues.
However, of late, the company has been underperforming, raising questions about its long-term outlook. Moreover, there is a great chance that its deal with Microsoft may fall through. Hence, there are plenty of red flags with ATVI stock making it a risky bet.
Find out more about Activision Blizzard stock here.
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