Sales of video games exploded in 2020, climbing nearly 20% to $175 billion, according to market researcher Newzoo. More players are engaged with games than ever before, which is great news for Activision Blizzard (NASDAQ: ATVI), as it has some of the most enduring franchises on the market, including Call of Duty and World of Warcraft.
While the availability of COVID-19 vaccines could be a threat to continued high player engagement in 2021, Activision Blizzard expects to keep growing the business this year, with a focus on execution. Plus, there could be a few surprises that investors are not expecting from new releases. But beyond the near term, investors are still not properly valuing the long-term growth potential this top game company offers.