Why Activision Blizzard Stock Bounced Back Today
Shares of video games maker Activision Blizzard (NASDAQ: ATVI) fell more than 4% on Friday in response to news that the Federal Trade Commission (FTC) may be preparing to file suit to block Activision's acquisition by Microsoft (NASDAQ: MSFT) in the next few weeks. Today, the stock is bouncing back a bit, rising 2% immediately after opening for trading this morning. It's still up 1.5% as we round the 10 a.m. EST mark.
The reason: Wall Street thinks the FTC will not in fact block the merger.
Tic-tac-toe, three in a row, Wall Street analysts JP Morgan, Morgan Stanley, and Wells Fargo unanimously assigned $95 price targets to Activision stock this morning -- not coincidentally, the precise dollar value of the all-cash bid that Microsoft made for Activision in January. (A fourth analyst, Truist, said it has a "bull case" valuation of $95 on Activision stock, but its mid-range valuation, accounting for risks that the merger will not go through, is closer to $81, according to ratings-watcher TheFly).
Source Fool.com
