Activision Blizzard, Inc. (NASDAQ:ATVI) has been taking all the right steps in the video game operations, from its e-sports games to mobile to consoles segment. The second quarter report released earlier in this month reflects how quickly the firm’s increasing engagement is resulting into profits and revenue.
It’s vital to compare company’s performance against what its management reported earlier. As the results show, Activision Blizzard surpassed its own set guidelines across the board. For 2Q2016, the company expected EPS to come at $0.10 while the actual EPS came at $0.17, better than the estimates. The revenue in 2Q2016 came at $1.57 billion compared to projected revenue of $1.43 billion.
The launch of Overwatch along with King Digital’s addition has supported results, as the company progressed with its shift from a console-game unit to a digital-content leader. And engagement will ensure revenue keeps coming in.
Outside of financial numbers, the most-important factor for market to watch in quarterly report is the engagement metrics. Activision Blizzard’s MAUs jumped 13% Y0Y, and 29% sequentially, supported by the introduction of Overwatch.
Online community surged 11% over last year, while King’s MAUs dropped in the quarter. None of these factors alone will boost the firm’s growth; however, they prove how leading Activision Blizzard is in industry of gaming.
On contrary when we talk about SPYR Inc (OTCMKTS:SPYR), it has turned to internet and application development segment from restaurant business. It is one of the heavily promoted stocks with market capitalization of less than $43 MILLION. The company has non-existent headquarters under acquisition, and surprisingly it is the focus of the on-going stock promotional mails and press releases.
Moreover, SPYR management has been accused for stock promotions issues in a SEC probe. The company cash is burning out fast with its only revenue generating segment going away in the coming period.
