Gaming Industry Has Strong Secular Tailwinds:
Microsoft $MSFT wants to acquire Activision Blizzard $ATVI for $95.00 per share (currently trading at $76.83), in an all-cash transaction valued at $68.7 billion. Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. It seems like Microsoft knows there is going to be continued growth in gaming for years to come. Who do you think are the biggest beneficiaries of this secular tailwinds?

Gaming companies such as: Take-Two Interactive $TTWO, Electronic Arts $EA, Sea Limited $SE

Platforms letting creators create their own games? Meta $META, Roblox $RBLX

Hardware providers such as: NVIDIA $NVDA, Advanced Micro Devices $AMD
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Looks like gaming is the fastest growing form of entertainment, according to AMD at their Analyst Day.
Huge opportunities ahead for hardware providers like $AMD & $NVDA and game developers like $MSFT, $ATVI, $EA, $RBLX, $TTWO, etc.
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Fairly excited over here about how tokenomics can create viable business models for indie gamers. The abbreviated idea is that you can have a free-to-play game with an economy of in-game items that are NFTs. Every time the NFT changes owners in the game there is a small transaction fee that goes to the game treasury and gets paid out to the developers.

This could be a sustainable way for game developers to create awesome games, as opposed to either going with the advertising model, or needing to charge a lot up front to buy the game.

The main thing that needs to happen for this to be possible is for blockchains to to scale, which could be on the horizon with the rise of layer 2s.
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Sachiv's avatar
$773.4k follower assets
Just setup my teenagers on an IB acct
I have a small account on my name, which I don’t use anymore. I sent that a small amount for my kids to structure their approach and gave them some resources to check out that I got on fintwit and via some great content publishers:
They came up with the following allocation:
10% arbitrage ($ATVI $VMW ) - immediate - passive
13% index funds ($SMH $VOO - using DCA) - passive
20% A rated cos ($NVDA $TSLA $GOOGL - using DCA) - passive
25% income generating stable cos ($TXN $AAPL $ASML ) - passive
32% other - bonus ideas, learning about special situations (like the rush to energy this year, rush to ecommerce during covid, etc) - semi-active
They’ve also come up with a mission statement - “to experiment, to learn, to grow”
Their philosophy:
  1. don’t time the market
  2. Own companies or industries that will survive and adapt over the long run
  3. Journal decisions both good and bad to look back on
  4. Own companies that are growing, transparent, and where management pride themselves on having a good reputation
Tools they have access to:
  1. Stockopedia.com
  2. Ycharts to visualize company performance trends and compare charts
  3. Yahoo finance
Thoughts and feedback/experience in dealing with teens & investing welcome!!
2 "Sells" and 1 Buy For My Daughter
After being hit with a $38 reorg fee from eTrade following $ZNGA's acquisition by $TTWO, I'm selling $ATVI ahead of its potential buyout from $MSFT to avoid the same fee.

They did reverse the fee after I called, but still quite frustrating as I feel like this is the exact type of stuff that scares off smaller investors.

With the cash from Zynga's deal and Activision's sale in my daughter's custodial account, I bought her some $ABNB.

According to Ycharts, Airbnb already generates around $2B in FCF, even accounting for stock-based compensation. Compared to a market cap of around $75B, the company's growth rates and future potential look reasonably priced.

In unrelated news, I'm looking for a new brokerage for a custodial account 😂 -- any you all may know of that are good or use personally? 🙏
Will Airbnb outperform against the S&P 500 over the next decade?
83%Of course!
8%No way!
8%Who's Airbnb?
12 VotesPoll ended on: 05/28/22
Check out Stash for a custodial account. Believe they make it easy for you and solid UX for a younger user/beginning investor to get used to investing!


Also, king $ABNB, hoping this one is a multi-bagger 10 years out!
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Neil's avatar
$26.9m follower assets
Worth the risk or not?
The $68 billion acquisition is expected to close a year, yet the market still does not fully believe the deal will go through.

$ATVI stock price is 20% lower than the acquisition one ($95) that $MSFT has offered.

Arbitrage opportunity or not worth it?

I don't know...
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Sorry but am I reading this correctly that if I bought activision stock today and the deal goes through as expected, Microsoft would buy my shares approximately +20% higher?
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Top gaming companies by revenue (Microsoft soon to be second)
Once $MSFT acquisition of $ATVI closes it will become the second largest gaming company by revenue, second only to $TCEHY (China's Tencent).

  1. Tencent: $27 billion
  2. Microsoft: $25.1
  3. Sony: $24.9
  4. Nintendo: $15.3
Stanley's avatar
$12.3m follower assets
Way Out Wednesday
14 stock positions increased/added.

Additional investments into my Stash Portfolio (5)

$ATVI - $94.22 consensus price target. Continuing to add more for the $MSFT buyout arbitrage play.

$MMM - $158.88 consensus price target. DCA down from previous buys. Increasing a 'core' position.

$ETSY - $156.42 consensus price target. DCA down from previous buys. Not a 'core' position so will consider flipping for a profit when the market recovers.

$PINS - $31.45 consensus price target. DCA down from previous buys. Not a 'core' position so will flip for a profit when the market recovers.

$ZG - $53.69 consensus price target. DCA down from previous buys. Not a 'core' position so will flip for a profit when the market recovers.

Additional investments into my M1 Finance "Fat Cat Investing" portfolio (9)


The 'Fat Cat Investing' portfolio is down 0.56% today and 5.20% overall since inception - a part of my ongoing "Real Estate Rumble".
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True, but you know, goals 😂
I could just as easily list each stocks 52 week high, but that figure too could be years away, given the current situation it’s all a crapshoot.

Or my profit/loss on that position but I’m not sure how helpful that would be.

Suggestions?
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Stanley's avatar
$12.3m follower assets
Taco Tuesday - 5/10/22
9 stock positions increased/added.

Additional investments into my Stash Portfolio (6)

$ATVI - $94.22 consensus price target. My wife is holding this in her portfolio, new position for me with $MSFT buyout in the works an arbitrage play.

$CROX - $110.22 consensus price target. DCA down from previous buys. Not a 'core' position so will flip for a profit when the market recovers.

$DOUG - $10.00 consensus price target. DCA down from previous buys. Not a 'core' position so will flip for a profit when the market recovers.

$EBAY - $60.41 consensus price target. DCA down from previous buys. Increasing a 'core' position.

$MTCH - $125.00 consensus price target. DCA down from previous buys. Not a 'core' position so will flip for a profit when the market recovers.

$NKE - $164.91 consensus price target. DCA down from previous buys. Increasing a 'core' position.

Additional investments into my M1 Finance "Fat Cat Investing" portfolio (3)


The 'Fat Cat Investing' portfolio is down 1.66% overall today and 4.81% since inception - a part of my ongoing "Real Estate Rumble".
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StockOpine's avatar
$31.6m follower assets
What do you think of $ATVI?
Is this really an arbitrage merger play or can the deal just fail, taking the share price back to mid $60 levels?

It is worth noting that in the recent quarter Activision fell short of analyst expectations, net bookings declined from $2.07b to $1.48b and MAUs declined from 435m to 372m.
Arbitrage Merger Play?
100%Yes
0%No
8 VotesPoll ended on: 05/03/22
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