Activision Blizzard, Inc. (ATVI), Giant Interactive Group Inc (ADR) (GA): Stay Away From This Gaming Stock – Perfect World Co., Ltd. (ADR) (PWRD)

Activision Blizzard, Inc. (NASDAQ:ATVI) had released five mobile games last year, and the publisher is scrambling its mobile development team to prepare some high-quality games for the platform. Activision’s traditional business has been doing well, still the company doesn’t want to miss out on mobile, and is looking to diversify itself. But Perfect World is content to watch these developments from the sidelines it seems.

The bottom line

Perfect World’s management is quite optimistic about the company’s long-term prospects. They are diligently working towards achieving market expansion and releasing new titles. The company currently trades at a trailing P/E of under 5 and a forward P/E of less than 1, which indicates that the market doesn’t expect much out of the stock.

Thus, it would make sense to wait and see how, and when, Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD) achieves a turnaround. Till then, I think investors would be better off putting their money on a solid stock such as Giant Interactive.

The article Stay Away From This Gaming Stock originally appeared on Fool.com.

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