WoW Stock Tip: Is Activision Blizzard's Growth Sustainable?

Posted Wed, Sep 08, 2010 by Messiah

Bet you thought World of Warcraft was all just a game, right? Wrong, there is big business behind our fantasy world, and that business is publicly traded. That means that you can get in on the winning, or losing side, by owning a piece of the company itself. Is it a good thing at this point though? That's what this article looks at.

Next up in our series is Activision Blizzard (Nasdaq: ATVI), a maker of popular console games such as Guitar Hero and Call of Duty, as well as the owner of the worldwide phenomenon known as World of Warcraft. It's been a great business for years. So good, in fact, that David Gardner's original pick for Motley Fool Stock Advisor had more than tripled as of this writing.

I know not everyone is a fan of the stock market, nor does everyone have the spare funds to invest. Nor would I ever recommend buying a stock to anyone, as they are very risky, things go up and down quite violently quite often. However, if you are to invest, then investing in something you like is not necessarily a bad thing. In the past I bought into Games-Workshop (and lost big) and into Apple (and won even bigger). No matter that I won or lost some money, owning a piece, albeit a small piece, of the companies that I love, makes me feel a part of them.

Would I put my own money into Blizzard? My own money, sure why not a little, after all, we know they are working on another MMO already, and they have Diablo III coming. Team that up with everything that Activision puts out and its not likely I would lose big even if I did lose.

All this comes down to remembering that the games we play are really a big business industry, that has been around for a long time already. Why not start thinking of them as such a little more often. Of course the article comes from a site called The Motley Fool, so can you take it seriously?

You can find the whole article here: Is Activision Blizzard's Growth Sustainable?.

News from around the 'Net