Why Activision Blizxard stock might be a steal.

I'm not going to pretend to be a financial advisor in any way. I'm just someone who is trying to learn how to take take some additional risks in stock investing, in addition to investing in ETFs.

Ok, so here's why I think Activision Blizzard will do very well in the coming months.

1. Firstly, Diablo 4, one of Activision Blizzard's flagship series is going to come out on June 6th. This series (Diablo I, II, & III) have historically been majorly successful, and is basically the predecessor to major games like Path of Exile in recent times.

With the release of a flagship AAA game, the company is asking for $70 USD per copy, up to $100 USD for its ultimate edition of the game. The game itself also follows industry standards of monetization through a Battle pass system that should refresh each season.

The reception to this game so far has been very positive, and I feel its release would be big enough to impact Activision Blizzard's Q2 report around August. A successful Q2 report would likely drive up people's perception of the company, and hence drive up the stock price.

1. Secondly, in recent times, Microsoft has met issues with the acquisition of Activision Blizzard, particularly in the UK because of anti trust laws. But this is a good thing. I'll explain why I think so.

For background, Microsoft in 2022 wanted to acquire activision blizzard at $95 per share. The price per share back then was around $70. With a potential future evaluation of $95, the market started to price this in over the last year and a half, resulting in activision blizzard stock ending around $85 last week.

In recent news though, with microsoft's difficulty, investors lost a bit of faith in the acquisition, and the stock price dropped to $75 ish. So it becomes potentially a good time to buy.

This is good because, based on my understanding (Im not going to pretend I know everything), the anti trust UK issue is based on Microsoft having too large a market share in Cloud computing games. But this in itself doesn't make sense, because cloud computing games make up 5% of the total market share. So realistically, Microsoft isn't really breaking anti trust laws with regards to the gaming industry.

To take my faith in microsoft being able to acquire activision blizzard one step further. Microsoft has already pledged to not monopolize many of the flagship AAA games of activision blizzard so that this acquisition can go through. They have cut a deal with nintendo to license out the famous Call of Duty series for 10 years in the future.

With this in mind, I believe that microsoft has the resolve and resources to eventually acquire activision blizzard.

*** So the way I look at is that Activision Blizzard seems to me at least, to be a pretty good investment in the medium term (couple of months til their Q2 earnings report), as well as potentially a long term gold mine with Microsoft potentially acquiring the company at a higher valuation.

Once again, I stress I am not a financial expert, I'm not going to pretend to be one. I'm just someone who has been following activision blizzard's products for years, someone who is trying to learn how to invest.

I might not know much about stocks and investments, but i think I know my stuff when it comes to games.

Anyway yeah, thanks for reading, hope to make some bank for my university education frfr. Bullish on one of my favourite companies.