Activision Blizzard Stock Price Tanks After Diablo 4, Overwatch 2 Delays
The company's share value plummeted in the wake of its earnings release on Tuesday.
Activision Blizzard's stock price started the day on Wednesday, November 3, down by more than 14% on the New York Stock Exchange following an earnings release on Tuesday where the company announced delays for Overwatch 2 and Diablo IV and made other announcements that might have spooked investors.
Activision Blizzard posted revenue of $2.07 billion for the quarter ended September 30 and a profit of $639 million, both of which represented year-over-year gains. However, the downturn in stock price is likely related to Blizzard's announcement of the delays for Overwatch 2 and Diablo IV, which were expected to launch in 2022 and become major revenue-drivers.
Another factor that might have startled investors was Activision Blizzard's acknowledgement that it is seeing "increased competition in the market for our talent and higher voluntary turnover" in the wake of the lawsuits and investigations against the company over sexual harassment and discrimination against women. Additionally, CEO Bobby Kotick said Activision Blizzard will "continue to face challenging and negative media attention."
Although Activision Blizzard's stock price is down significantly this week, the company's share value is up by more than 60% over the past five years.
Another big piece of news from Blizzard this week is that co-boss Jen Oneal announced she is stepping down after just three months in her new role. She is joining the non-profit Women In Games International, and Activision Blizzard is setting up a $1 million grant for it.
Activision Blizzard's next big release is Call of Duty: Vanguard this Friday, November 5, and it will be followed by the launch of Warzone Pacific in early December.
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