Why Activision Blizzard Stock Is Heating Up Today

Activision Blizzard Inc ATVI shares are trading higher Tuesday after the company reported better-than-expected financial results.

What Happened: Activision reported fourth-quarter revenue of $3.57 billion, which beat average analyst estimates of $3.16 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $1.87 per share, which beat consensus estimates of $1.51 per share. 

Fourth-quarter net bookings climbed 43% year-over-year to $3.57 billion, beating estimates of $3.16 billion. 

Activision said it had 389 million monthly active users at quarter's end. 

"We ended 2022 with record quarterly net bookings as we delivered on our mission to bring epic joy to players," said Bobby Kotick, CEO of Activision Blizzard.

Check This Out: Activision Blizzard Q4 Earnings Highlights: Net Bookings Record, Call Of Duty Performance, Microsoft Deal Update And More

Activision still expects the deal with Microsoft Corp MSFT to go through. Microsoft announced plans to acquire Activision in January 2022 for $95 per share in an all-cash transaction.

"The two parties are continuing to engage with regulators reviewing the transaction and are working toward closing it in Microsoft's fiscal year ending June 30 2023," the company said. 

Activision said it expects high teens year-over-year revenue growth in 2023. The company anticipates high-single digit net bookings growth. 

ATVI Price Action: Activision has a 52-week high of $82 and a 52-week low of $70.94.

The stock was up 3.38% at $74 at time of publication, according to Benzinga Pro.

Photo: Tarcil Tarcil from Flickr.