Analysts are losing confidence and downgrading Activision's stock

Analysts are starting to adjust ratings and targets on Activision-Blizzard stock and view company shares as potentially volatile.

Published Fri, Nov 19 2021 4:33 PM CST   |   Updated Mon, Dec 13 2021 2:06 AM CST

Analysts are starting to downgrade Activision-Blizzard stock due to abuse allegations and ongoing controversy.

Analysts are losing confidence and downgrading Activision's stock 555 |

Activision-Blizzard is being hit on all sides right now. The company is accused of fostering a frat boy culture where sexual harassment, discrimination, and abuse runs rampant. Every day there's new reports breaking out that adds new volatility to share value. ATVI stock has been crashing for weeks now. At the time of writing Activision stock is at $62.38, the lowest point in the last year.

Analysts are losing confidence and downgrading Activision's stock 4242 |

Analysts are taking note and adjusting their forecasts. J.P. Morgan financial analyst Alexia Quadrani has downgraded Activision stock from overweight to neutral, which essentially means Activision-Blizzard stock ivalue is now seen as in line with expected returns on the market.

Quadrani tells clients that the recent news stories "introduce a significant amount of uncertainty into this story." ATVI stock isn't expected to outperform.

Analysts are losing confidence and downgrading Activision's stock 244 |

Other analysts expect Activision-Blizzard to deliver share highs of $118 and mid-line values of $93, however the current value is well below analysts' floor targets.

Also remember that Roblox has now surpassed Activision-Blizzard in terms of market capitalization, which technically means Roblox is the most valuable games company in the United States.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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