Videogame stocks are active premarket as high-flying Activision Blizzard gets a vote of confidence to keep climbing.
Needham boosted its price target on Activision to $90 from $75 per share. Needham cited driving factors like need for social distancing, no movie theaters or live sports, increased in-game revenue from more hours played and “the cultural bias against video games … ebbing as parents now understand (at home with their kids) the highly social aspect of video games like Fortnite”.
A move to Needham’s price target would mean the stock doubles in the last 12 months.
While stay-at-home stocks like Facebook and Zoom have unsurprisingly dominated the headlines during the market recovery, videogame stocks have been the quiet winners in the Communication Services sector, led by Activision.
ATVI is up 62% over the past 52 weeks, second only to Zoom (up 182%). EA is up 45% and TTWO up 23%. That compares with a 10% rise in the SPDR Communication Services Sector ETF (XLC, +1%)
Looking to momentum, Activision is up 35.7% in the last three months, compared to the sector rise of 24.4%. Shares are 27.5% above the 200-day moving average of $61.19.
The Energy Sector has been volatile through the holiday-shortened week. Oilfield services and refiners have been bouncing intraday, taking the sector between market leader and loser.
Stocks finished weaker yesterday, giving up lots of the gains garnered in late-trading Tuesday.
That could make the Baker Hughes rig count a more market-moving event than usual at 1 p.m. ET today.
The weekly oil rig count has been dropping since its high for the year of 679 reported on Feb. 21. But an inflection point may have arrived, with the count barely dipping to 188 last week from 189 the week before.
Activision topping the high score list