Why Are Activision Blizzard Shares Trading Lower Today?

Activision Blizzard Inc ATVI delayed the launch of two games and reported third-quarter earnings with a holiday-season outlook falling short of consensus.
Activision postponed the release of the "Overwatch" sequel and a new installment of "Diablo," citing recent leadership changes at the Blizzard Entertainment unit making them.
The changes followed the company's July prosecution over allegations of gender-based discrimination, harassment, and retaliation.
Activision's Q3 net bookings rose 6% to $1.88 billion, while net income climbed 6% to $639 million. The monthly active users were 390 million, flat from a year ago.
Activision projects net bookings to fall 4.5% from a year earlier to $2.78 billion, below the consensus of $2.92 billion.
Activision's FY21 outlook for net bookings, $8.65 billion, was below the consensus of $8.79 billion.
Blizzard co-chief since August Jen O'Neal would depart to focus on a new diversity, equity, and inclusion initiative in partnership with a nonprofit.
Activision is battling an SEC investigation and subpoena for alleged sexual misconduct and workplace discrimination and a California's Department of Fair Housing and Employment lawsuit, the Wall Street Journal reports.
Analyst rating: Keybanc analyst Tyler Parker maintained an Overweight and lowered the price target from $120 to $100, implying a 28.75% upside.
Price Action: ATVI shares traded lower by 13.70% at $67.05 in the premarket session on the last check Wednesday.