Activision Blizzard, Inc. (NASDAQ: ATVI) has accumulated a large cash reserve of $ 9.3 billion in the first quarter of the year. There is no doubt that this is a significant competitive advantage under the current conditions of the business market.
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When digital entertainment was at a record high, Activision Blizzard saw its cash flow increase significantly over the past year on a record basis. Over this period, cash stock rose by about a third, and in comparison with 2016, it increased by 3.2 times. Long-term debt was $ 5.8 billion at the time, and it has dropped to $ 3.6 billion. The company’s financial situation has improved significantly as a result.
Activision Blizzard, Inc. (NASDAQ: ATVI) may gain an advantage over its competitors with this ample cash supply. There is a lack of creative ideas and specialists capable of producing and implementing new concepts in the digital content market today. In some cases, large companies manage to acquire these resources through the purchase of small developer studios, as Take-Two Interactive Software Inc. (NASDAQ: TTWO) did recently.
Activision Blizzard’s management emphasized the importance of the company’s purchasing policies and strategic partnerships when announcing the last quarter’s results. Due to the company’s substantial cash stock, Activision Blizzard can purchase high-value assets. A similar acquisition of two major game developers, Codemasters and Glu Mobile, was made by Electronic Arts for $3.2 billion.
Activision Blizzard, Inc. (NASDAQ: ATVI) stock concluded the last session at $97.12, rising 0.29% or $0.28. Its stock price fluctuated between $96.28 and $97.29 throughout the day. During trading, 2.66 million shares changed hands, less than its 50-day daily volume of 5.78 million and less than its year-to-date volume of 5.82 million. The company’s stock has gained 39.88% in the past 12 months, and in the last week, it moved down -0.13%. During the past six months, the stock has gained 23.26%, while in the previous three months, it has risen 8.87%. Since the beginning of the year, the stock has returned 4.60%. In addition, the stock’s price-to-earnings ratio is 34.44.
