In this segment of the Motley Fool Money radio show, host Chris Hill, Million Dollar Portfolio's Jason Moser and Matt Argersinger, and Total Income's Ron Gross consider the quarterly results for Activision Blizzard (NASDAQ: ATVI), which outperformed as usual. So why did the stock dip slightly, and how much growth is the company looking at in the current quarter, with a new game from one of its biggest franchises debuting Friday?
Then they move on to AutoNation (NYSE: AN), which reported a decent -- if waterlogged -- third quarter thanks to hurricanes Harvey and Irma. More importantly, it signed a major service deal with a little autonomous car company called Waymo, which as we all know is a unit of a big everything company called Alphabet.
A full transcript follows the video.
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This video was recorded on Nov. 3, 2017.
Chris Hill: Activision Blizzard's third quarter report was a lot like other recent reports from the video game giant. Profits higher than expected, and they raised guidance. Shares actually down on Friday, Matty. Is that simply a valuation thing? Because 2017 has been a great year for this stock.
Matt Argersinger: It's had such a great run. As you mentioned, they basically raised annual guidance almost every quarter this year. The results have been a bit lumpier this year because they had so many big releases last year. When big video games come out, it really shakes up the results. But, I think, they're going to finish the year strong because Call of Duty World War II actually comes out today. That's always their big holiday release every year. They're going back to the World War II period, which made Call of Duty the big hit that it is. I think that's going to be huge. But overall, the business itself, 49 million active monthly users at Activision, 42 million at Blizzard, 293 million at King Digital, which is Candy Crush. Those users, those millions of users, are spending an average of 50 minutes per day playing Activision games, which is a tremendous number. I'm really excited for 2018 because I think that's the year where e-sports are going to break out in North America, and Activision is kicking that off in January with their OverWatch League.