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