Why Activision Blizzard Stock Plunged Today
Shares of Activision Blizzard (NASDAQ: ATVI) fell 14% on Wednesday after the digital-entertainment company postponed two major game launches.
Revenue in the video game maker's Blizzard segment jumped 20% to $493 million, fueled by strong sales of Diablo II: Resurrected. Meanwhile, revenue in the company's King mobile gaming division leaped 22% to $652 million, driven by in-app purchases and advertising sales in popular games like Candy Crush. However, revenue for its Activision unit decreased by 17% to $641 million, due in part to a decline in monthly active users.
Overall, Activision Blizzard's revenue rose 6% year over year to $2.1 billion, while its earnings per share increased 5% to $0.82. Investors, however, appeared to focus on the company's announcement that it would delay the launch of highly anticipated installments of two of its most popular franchises.
Source Fool.com
