With my disposal of Starbucks, I decided I wanted another Consumer Discretionary stock with solid management. With the recent weakness in ATVI doe to lowered guidance, I figured maybe now is the time to get in.
Interestingly (and incorrectly, I believe), ATVI correlates most strongly with the technology sector:
Yes it is a software company, but it seems more tied to discretionary spending than technology. So I think the market is wrong about that one. And since the discretionary spending sector is pretty hot right now, I am hoping the market figures that out.
Final point is that the CEO of ATVI is Bobby Kotick, who has been at this a long time, and I believe has a vision of where he wants to take this company. I have historically done well investing in companies with standout CEO’s and I think I have to put Kotick in this category. Kotick is more of a businessman than a gamer, which I think is what you want from an investors point of view (but perhaps the opposite from a games point of view). Lots of opportunities for gaming in the coming years, from Virtual reality to E-Sports, and I am placing my bet that ATVI and Kotick will be the winner.