1 Important Metric Activision Blizzard Keeps Missing

1 Important Metric Activision Blizzard Keeps Missing

Activision Blizzard (NASDAQ: ATVI) stock is up a market smashing 70% year to date, as investors have been ecstatic with the company's recent business performance. Activision posted a great first quarter with growth in revenue and earnings despite no new game releases (excepting King's Bubble Witch 3 Saga). However, monthly active users (MAUs) -- a key measure of the game maker's user base -- has declined four quarters in a row. Is this a problem? Could it signal the company's momentum is about to end?

Let's take a closer look at this important metric to find out.

Every quarter, management reports monthly active users as a key indicator of its audience reach with its games. However, MAUs is not a perfect indicator, and shouldn't be looked at by investors as a measure of how many unique players are playing the companies' games in a given period.

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Source: Fool.com