X

Select the account you'd like to open

Technical analysis

Trading idea of the week: Activision Blizzard

Activision Blizzard Chart

Check out our trading idea of the week below.

Trading idea of the week

NASDAQ:ATVI - Activision Blizzard Inc - BULLISH BIAS

  • Key levels on the chart - consider taking trades from key support/resistance zones.
  • Microsoft's proposed buyout presents the potential for shareholders to realise its value.

  • Amid management scandals, Microsoft has made an offer to buy ATVI for US$95 per share.

  • Activision first appeared in the Berkshire portfolio after it was purchased by one (or both) of their smaller money managers – Todd Combs & Ted Weschler.
  • Berkshire’s bet on Activision is a return to the old days of “workouts” for Buffett – a simple bet on Microsoft’s deal being approved, and shareholders capturing the spread between the current market price and Microsoft’s offer of $95/share.
  • I suspect Buffett (with help from his other managers) wouldn’t mind owning the underlying business should the deal fall over too, as it has a strong track record of earnings growth.


Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Sign up for market update emails