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Activision's Overwatch Crosses 10M Viewers, Partners Toyota
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Activision Blizzard’s Overwatch League had a scintillating start with more than 10 million viewers watching the event in the first week of the inaugural season.
Worldwide fans of Overwatch viewed all the actions of the league through Twitch, MLG.com and the MLG app (on iOS and Android). The event was also available in the OverwatchLeague.com and the Overwatch League companion app.
Moreover, Activision added Toyota to its list of sponsors which already includes the likes of Intel and Hewlett-Packard.
The automotive manufacturer plans to have additional broadcast integrations and a vehicle presence at Blizzard Arena Los Angeles, where all the games of the inaugural season are scheduled.
The first season of the Overwatch League will run until June, with playoffs and finals scheduled for July.
Shares of Activision surged 5.6% since the beginning of the Overwatch League (January 10). Activision’s shares have returned 83.1% in the past year, substantially outperforming industry’s rally of 48.2%.
We expect Activision to benefit from the massive viewership, expanding corporate sponsorships and growing media coverage of the Overwatch League.
E-sports, which are live video game tournaments, are fast emerging as a lucrative business opportunity. Activision has long been undertaking efforts to build its presence in this arena.
Apart from setting up an exclusive e-sports unit spearheaded by former ESPN CEO Steve Bornstein, the company acquired MLG, a leading e-sports organization for an estimated $46 million to boost its presence in the market.
The massive viewership along with expanding sponsor-base provides Activision a competitive edge over the likes of Electronic Arts (EA - Free Report) and Take-Two Interactive Software (TTWO - Free Report) . These companies are stepping up their efforts to match Activision’s growing dominance in the e-sports market.
EA partnered with the National Football League (NFL) to organize the Madden NFL Club Championship. In February 2017, Take Two inked a deal with NBA to launch NBA 2K eLeague, which will be functional in 2018.
Portfolio Strength to Drive Growth
Moreover, Activision’s strong innovative portfolio that includes offerings like StarCraft, World of Warcraft, Diablo, Hearthstone, Heroes of the Storm, Call of Duty: WWII and Destiny 2 will drive growth in the near term.
According to NPD, GfK/GSD and Activision’s internal estimates (through October 2017), Call of Duty: WWII and Destiny 2 were the #1 and #2 top-selling console video game of the year, respectively, in North America.
Activision anticipates fourth-quarter 2017 non-GAAP revenues and earnings to be $1.7 billion and 36 cents per share, respectively. The company is scheduled to report results on Feb 8.
The Zacks Consensus Estimate for fiscal 2018 earnings has been steady at $1.25 over the last 7 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Activision's Overwatch Crosses 10M Viewers, Partners Toyota
Activision Blizzard’s Overwatch League had a scintillating start with more than 10 million viewers watching the event in the first week of the inaugural season.
Worldwide fans of Overwatch viewed all the actions of the league through Twitch, MLG.com and the MLG app (on iOS and Android). The event was also available in the OverwatchLeague.com and the Overwatch League companion app.
Moreover, Activision added Toyota to its list of sponsors which already includes the likes of Intel and Hewlett-Packard.
The automotive manufacturer plans to have additional broadcast integrations and a vehicle presence at Blizzard Arena Los Angeles, where all the games of the inaugural season are scheduled.
The first season of the Overwatch League will run until June, with playoffs and finals scheduled for July.
Activision Blizzard, Inc Price and Consensus
Activision Blizzard, Inc Price and Consensus | Activision Blizzard, Inc Quote
Overwatch: Key Catalyst in 2018
Shares of Activision surged 5.6% since the beginning of the Overwatch League (January 10). Activision’s shares have returned 83.1% in the past year, substantially outperforming industry’s rally of 48.2%.
We expect Activision to benefit from the massive viewership, expanding corporate sponsorships and growing media coverage of the Overwatch League.
E-sports, which are live video game tournaments, are fast emerging as a lucrative business opportunity. Activision has long been undertaking efforts to build its presence in this arena.
Apart from setting up an exclusive e-sports unit spearheaded by former ESPN CEO Steve Bornstein, the company acquired MLG, a leading e-sports organization for an estimated $46 million to boost its presence in the market.
The massive viewership along with expanding sponsor-base provides Activision a competitive edge over the likes of Electronic Arts (EA - Free Report) and Take-Two Interactive Software (TTWO - Free Report) . These companies are stepping up their efforts to match Activision’s growing dominance in the e-sports market.
EA partnered with the National Football League (NFL) to organize the Madden NFL Club Championship. In February 2017, Take Two inked a deal with NBA to launch NBA 2K eLeague, which will be functional in 2018.
Portfolio Strength to Drive Growth
Moreover, Activision’s strong innovative portfolio that includes offerings like StarCraft, World of Warcraft, Diablo, Hearthstone, Heroes of the Storm, Call of Duty: WWII and Destiny 2 will drive growth in the near term.
According to NPD, GfK/GSD and Activision’s internal estimates (through October 2017), Call of Duty: WWII and Destiny 2 were the #1 and #2 top-selling console video game of the year, respectively, in North America.
Activision anticipates fourth-quarter 2017 non-GAAP revenues and earnings to be $1.7 billion and 36 cents per share, respectively. The company is scheduled to report results on Feb 8.
Zacks Rank & Key Pick
Activision has a Zacks Rank #3 (Hold).
Nintendo (NTDOY - Free Report) with a Zacks Rank #1 (Strong Buy) is a stock worth watching in the same sector. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fiscal 2018 earnings has been steady at $1.25 over the last 7 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>