Should You Still Consider Investing in Activision Blizzard (ATVI)?

Jefferies Group, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund talked about the Metaverse and discussed some of the key companies involved in this virtual/augmented reality technology. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Jefferies Group, in its Q3 2021 investor letter, mentioned Activision Blizzard Inc. (NASDAQ: ATVI) and discussed its stance on the firm. Activision Blizzard Inc. is a Santa Monica, California-based video game company with a $48.1 billion market capitalization. ATVI delivered a -34.40% return since the beginning of the year, while its 12-month returns are down by -20.39%. The stock closed at $60.91 per share on November 24, 2021.

Here is what Jefferies Group has to say about Activision Blizzard Inc.  in its Q3 2021 investor letter:

“Activision Blizzard – ATVI (Buy, $120): World of Warcraft was meta before metaverse. Large persistent worlds have been a staple of WoW from the beginning. Self-expression in skins, armor, and mounts have long been part of the game. WoW also has a robust economy – while there isn’t any opportunity to play to earn legitimately in the game as only trading is allowed, its economy is more advanced than most games. Other titles like Call of Duty or Diablo would have more limited opportunities to leverage technologies building the metaverse. Regardless, the ones it could, would still drive incremental engagement and revenue opportunities.”

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Based on our calculations, Activision Blizzard Inc. (NASDAQ: ATVI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ATVI was in 80 hedge fund portfolios at the end of the third quarter of 2021, compared to 78 funds in the previous quarter. Activision Blizzard Inc. (NASDAQ: ATVI) delivered a -24.63% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.