'Fortnite' Success Erased $6 Billion USD in Market Value From Activision Blizzard
“We think the monetization fears are overblown.”
Fortnite is at the height of its popularity, with some believing it has sparked Activision Blizzard‘s $6.3 billion USD decline in market value.
Activision Blizzard stock has been down more than 10 percent since March 12, and investment firm Jefferies believes now is the opportune moment for folks to buy Activision stock. But according to analyst Timothy O’Shea, this will not be the case long term, stating:
“We see a buying opportunity as Activision Blizzard shares have traded down ~11% in the past week on fears Epic‘s mega-hit Fortnite could siphon engagement & monetization away from games like Call of Duty, potentially pressuring near-term results. While our checks suggest Fortnite is indeed pulling some engagement away from Activision Blizzard, we think the monetization fears are overblown.”
Although Fortnite may be treading on some Activision Blizzard audiences, it’s speculated this won’t last long. As O’Shea believes gamers will stay loyal to Activision’s titles. In related news, Epic Games’ Fortnite on the App Store made $1.5 million USD in four days from in-app purchases.
