By Dhirendra Tripathi
Investing.com – Activision Blizzard stock (NASDAQ:ATVI) plunged more than 12% in Wednesday’s premarket trading as the video games publisher put off the release of two of its most awaited titles.
The company did not give a timeline for the release of ‘Overwatch 2’ and ‘Diablo IV’, which investors had hoped would revive the fortunes of a company that has been rocked by cases of sexual misconduct.
Also weighing on the stock was the departure of co-leader Jen Oneal and a quarterly outlook that fell short of expectations.
Oneal’s exit, which leaves Mike Ybarra as the studio’s sole chief, follows the firing of more than 20 employees over the last few months, according to a company statement. The two had jointly taken over after former President J. Allen Brack was forced out in the wake of a lawsuit in California alleging discrimination against women.
The company behind the ‘Candy Crush’ and 'Call of Duty' franchises has created an $18 million fund to compensate victims of inappropriate behavior, it said in a statement.
It expects adjusted revenue of $2.78 billion in the current quarter, short of analysts’ estimates.
Activision's total monthly active users fell to 390 million by the end of the quarter from 408 million at end-June and was unchanged from same time last year, a sign the pandemic-driven binge may be cooling off.
Adjusted sales in the third quarter were $1.88 billion and matched estimates while adjusted profit per share of 89 cents surpassed forecasts.
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