Here’s Why Activision Blizzard (ATVI) Stock is Trading Higher on Friday

Activision Blizzard Inc. (NASDAQ:ATVI) was formed in 2008 as a result of a merger between two gaming brands Activision and Blizzard Entertainment. It is one of the best performing stocks of the last decade, as its famous gaming franchises helped the company to grow at a consistent pace.

The Santa Monica, California-based videogame publisher on Thursday reported its earnings and revenue for the fourth quarter above the consensus forecast. Moreover, it also offered an upbeat sales outlook for the first quarter, sending its shares up nearly 10 percent on Friday.

Activision Blizzard reported earnings of $508 million, or 65 cents per share for the quarter ended Dec. 31, beating the consensus forecast of 53 cents per share. Its adjusted revenue of $3.05 billion also exceeded analysts’ average forecast of $2.83 billion.

Q4 revenue was mainly helped by lockdown restrictions during the pandemic that led to a surge in demand from stuck-at-home gamers. In December, videogame sales climbed 25 percent on a year-over-year basis to $7.7 billion in the U.S. alone.

ATVI said 2020 was an exceptional year for its famous “Call of Duty” franchise that attracted more than 100 million monthly active gamers.

Looking forward, the company expects to report adjusted revenue of $1.75 billion for the first quarter, as compared to the consensus forecast of $1.67 billion.

Activision Blizzard shares hit a new 52-week high of $104.23 on Friday following better-than-expected quarterly results and outlook. Overall, ATVI’s stock value has increased more than 73 percent over the past year, including today’s gain.