Activision just had its worst day in 13 years

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Video game stock Activision Blizzard is in the middle of a massive sell-off.

The stock fell more than 14% on Wednesday, its worst day since November 2008, after announcing delays for the latest releases in its Overwatch and Diablo franchises. The studio is grappling with sexual harassment and discrimination allegations that led to firings over the recent quarter and development disruptions.

Activision is by far the worst performer among the top video game stocks. Its shares have fallen 28% in 2021 – competitors Take-Two Interactive and Electronic Arts are also lower for the year, but at just a fraction of Activision’s losses.

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“It does make sense to consider taking a stab at a stock like this. It’s already had its decline,” said Newton. If “this is truly a [reopening] trend that’s happening to all these companies, I don’t know if I want to own the strongest one. I’d rather own the one that’s already seen the bulk of that weakness. It’s now getting oversold. So it makes a good case to consider buying it right here.”

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