Activision Blizzard Inc (NASDAQ:ATVI) stock fell 0.10% (As on September 16, 11:09:49 AM UTC-4, Source: Google Finance) after Atlantic Equities analyst upgraded shares of the company to Overweight. The analyst also reduced the price target of Activision to $84 from $95. On Activision, he said they view the risk-reward as a positive given “substantial upside” if the Microsoft acquisition is approved and a much more limited downside if the deal does not complete. “On a standalone basis, Activision has started delivering on its strong content pipeline, which should see the company return to meaningful growth in CY23,” added the analyst.

Meanwhile, regarding an update on the company’s progress towards the completion of its merger with Microsoft, the company with the number of government approvals required, still believes the deal is most likely to close in Microsoft’s fiscal year ending June of next year. The company is fortunate to have already received approvals from a couple of countries, and the process with all of the regulators is generally moving along as the company expected.

Moreover, for the second quarter ended June 30, 2022, Activision Blizzard’s net bookings were $1.64 billion, as compared with $1.92 billion for the second quarter of 2021. In-game net bookings were $1.20 billion, as compared with $1.32 billion for the second quarter of 2021. For the quarter ended June 30, 2022, overall Activision Blizzard Monthly Active Users (MAUs) were 361 million. GAAP revenue and EPS declined year-over-year in the second quarter, and the company expects GAAP revenue and earnings per share to remain lower year-over-year in the second half of the year. Second quarter segment operating income increased versus the first quarter for each of Activision, Blizzard and King. Based on the current pipeline, total segment operating income is expected to increase modestly in the third quarter versus the second quarter, and to return to year-over-year growth in the fourth quarter. Activision Blizzard generated $198 million in operating cash flow for the quarter as compared with $388 million for the second quarter of 2021.

Further, the releases planned for the second half of the year include Call of Duty: Modern Warfare II, a new Call of Duty: Warzone 2.0 experience, World of Warcraft: Wrath of the Lich King Classic, World of Warcraft: Dragonflight and Overwatch 2, with Diablo IV planned for release in 2023.