Why Activision Blizzard Isn't Really a Growth Stock
Any way you look at it, Activision Blizzard (NASDAQ: ATVI) is being valued like a growth stock. Shares are trading for 32 times projected 2020 earnings and the company's price-to-sales ratio is 8.8, hardly a value for a stock today. But is Activision Blizzard really a growth stock?
The general thesis that video game use and game engine technology is growing might be true, but looking at Activision Blizzard's performance shows that doesn't necessarily translate to growth for video game makers. And long term, the industry may be moving away from what Activision Blizzard does best.
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Source Fool.com
