Stock Market Analysis Paper

1099 Words5 Pages

Stocks are fluctuating as we discuss and analyze the current stock market according to the New York Stock Exchange (NYSE). Stocks that continue to attract investors consistently include eminent companies in the entertainment and banking industries. I chose to analyze and research Activision Blizzard Inc. because of the recent success and rise of their shares on the market. This company specializes in interactive entertainment all over the world. Activision develops and distributes entertainment including Call of Duty, Skylanders, and Destiny, three very popular video games on the market today. Not only is Activision distributor of these games, Activision branches off and provides services through Blizzard Entertainment, King Digital, Media …show more content…

Analysists are uncovering what is said to be the “next-best thing” in the stock market exchange (Hoium). Shares of this stock are being described as special stock with mind-blowing growth potential based off recent projections. Based on projections of the near future revenues, this company has great promises with low risk involved with investing in their stocks.
The number one competitor of Activision is its close competitor Electric Arts Inc. Electric Arts Inc. is responsible for the production of entertainment video games such as Madden, FIFA, other sports games, and more. Activision as compared to its competitors is just as large and seems to have a slight advantage in the stock market due to current projections and statistics. Activision as well as Electronic Arts and other competitors fluctuate in the stock market because of drastic …show more content…

By calculating the price per earnings, you simply take the current stock price of a company and divide by its earning per share (EPS). After calculating the P/E an investor can determine if a company’s stock is over or undervalued. Companies with high P/E ratios are typically growth stocks (Staff). If a company’s P/E is high this does not necessarily mean their stocks are overpriced; but the market value of the stock and the earning of the company also need to be accounted for. The current P/E of Activision Blizzard is calculated on the Nasdaq website which is stated as the actual price per earnings being 22.85 and the estimated P/E for 2017 being 27.04. Today, the P/E Ratio of Activision reports at 41.70 which is sustainable for this company. Activision Blizzard has recorded its P/E ratio over the past 13 years as 1036.00 being the highest, the lowest being 10.56, and a median of 29.38 (ATVI). This statistic is contradicting the projection and showing much more growth than predicted; however, like stated before, the stock exchange fluctuates. Dividends also become a reliable source of data for investors to secure relatively stable cash flow. The dividend yield is the sum of a company’s annual dividends per share, divided by the current price per share. If the dividend yield is high or stable, investors secure an investment to stabilize their

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