A few weeks ago, I highlighted some of the struggles that Activision Blizzard, Inc. (ATVI) – one of the top video game producers in the world – has encountered recently.
Chief among its issues is a lawsuit filed by California authorities amid accusations of a toxic workplace in which sexual harassment and retaliatory practices against anyone that spoke up about it were rampant. Management then didn’t do itself any favors by outright denying the charges, before ultimately being forced to walk it back and issue an apology to employees.
In response, Activision employees staged a highly-publicized walkout in late July to demand better working conditions.
As a result, ATVI stock fell as much as 15.3% since news of the lawsuit broke.
But at these levels, Activision is getting a lot of attention from buyers looking to scoop up shares at a discount in what could be one of the best comeback plays for the remainder of 2021.
Assuming Activision can clean up its troubled workplace culture – and I sincerely hope that they do – the stock’s recent dip presents a fantastic profit opportunity.
In the end, Activision is still the maker of some of the most popular video game franchises in the world.
In 2020 alone, the Call of Duty franchise amassed more than $1.9 billion for Activision. The Grand Theft Auto V game generated about another $1 billion. And those are just two of the dozens of games in Activision’s arsenal.
And as the winter months approach in the U.S. – in which much of the country tends to stay indoors – combined with the surge of the Delta variant, we could see an uptick in video game sales in the coming months.
Anyone looking to put some speculative money to work would do well to consider ATVI. The timing of its latest selloff could be perfect for a relatively quick reversal to the upside.
Trading tip of the week
If you are a trader, you have to look at candlestick formations. It is a far more useful tool than looking at a simple line chart that loosely tracks a security’s movements.
While a line chart gives you only one data point (normally the close price) for a stock at any point in time, candlesticks actually give you five: open, close, low, high and direction of movement
A green candle means that the close is higher than the open.
A red candle means the close is lower than the open.
This is very important when predicting the potential movement of a stock.
Earnings report to watch
When looking for earnings reports that are likely to beat estimates, the most important thing to look for is companies that get favorable earnings estimate revisions ahead of their next earnings reports.
Raising expectations for a company’s performance ahead of earnings is usually a good indication that a beat is coming.
That’s why Target Corporation (TGT) has landed atop my list of earnings reports to watch this week.
Analysts have recently been raising their forecasts for TGT’s Wednesday report, with an increase in earnings per share that’s nearly 5% higher than initial projections.
Sales and revenue have been on the rise for Target in 2021, and I wouldn’t be surprised in its latest report surprises to the upside again.
This Could Be 2021’s Biggest Success Story
This is quickly shaping up to be America’s next $100 BILLION industry.
Still, the public companies in this space are ALL at their earliest stages – some have yet to post a dime in revenue.
But that could quickly change in Q4 2021 – when a massive catalyst is expected to rocket this sector into the limelight.
I want to give you fair warning: It’ll throw you for a complete 180. Depending on where you stand politically, religiously, and culturally… it’ll offend you, shock you, or disturb you. But most of all, it will seriously impress you.
We’ve already seen gains of 613% in just over one year, and 2,661% in just four years from some of the industry’s top companies.
And within the next 12 months, it could make you A LOT of money. Check it out here.