Activision Blizzard Inc. (ATVI): Today's Featured Computer Software & Services Laggard

Tickers in this article: ATVI

Activision Blizzard (ATVI) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 1.9%. By the end of trading, Activision Blizzard fell 65 cents (-5.5%) to $11.12 on heavy volume. Throughout the day, 18.3 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of eight million shares. The stock ranged in price between $11-$11.62 after having opened the day at $11.60 as compared to the previous trading day's close of $11.77. Other company's within the Computer Software & Services industry that declined today were: Active Network (ACTV), down 15.8%, Kingtone Wirelessinfo Solution (KONE), down 15.4%, Analysts International (ANLY), down 14%, and SciQuest (SQI), down 11.1%.

Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile interactive entertainment worldwide. It develops and publishes PC-based computer games and maintains its proprietary online-game related service, Battle.net. Activision Blizzard has a market cap of $13.14 billion and is part of the technology sector. The company has a P/E ratio of 14.2, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 4.5% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Activision Blizzard as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins, good cash flow from operations and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Pros Holdings (PRO), up 18.6%, Helios & Matheson Information Technology In (HMNY), up 12.9%, TigerLogic Corporation (TIGR), up 11.5%, and BroadSoft (BSFT), up 11.1%, were all gainers within the computer software & services industry with Microsoft Corporation (MSFT) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx (IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology (REW).

Tickers in this article: ATVI