The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
The Fed chief said that despite reports that Trump was looking to demote or fire him, he doesn't plan on leaving anytime soon.The Fedread more
With bold and targeted steps, economists say, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism.Politicsread more
Slack Technologies' reference price was set at $26 per share, the New York Stock Exchange announced Wednesday evening.Technologyread more
If the Trump administration and Congress fail to reach a spending agreement, the White House will offer to keep the government funded at its current levels for a year, Mnuchin...Politicsread more
Resident "Fast Money" crypto expert Brian Kelly breaks down the major differences between bitcoin and Facebook's new cryptocurrency Libra.Fast Moneyread more
Oracle found revenue growth from cloud applications in its fiscal fourth quarter, which helped it surpass analysts' expectations.Technologyread more
Federal Reserve Chairman Jerome Powell said on Wednesday that Facebook spoke to the central bank about the digital currency called LibraThe Fedread more
The vote makes Mexico the first of the three countries to win legislative approval for the trade agreement.Politicsread more
Activision Blizzard's upcoming franchise title launches will be big blockbuster sellers, according to one top Wall Street firm.
Goldman Sachs raised its rating for Activision Blizzard shares to buy from neutral, predicting the company will report profits above expectations in 2019 and 2020.
"We believe the recent sell-off in Video Game stocks has largely been due to technical factors relating to positioning around tax reform, and does not reflect any change in fundamentals for the group. We therefore see attractive entry points across our coverage, particularly for ATVI," analyst Christopher Merwin wrote in a note to clients Tuesday. "We are raising our 2019 and 2020 estimates on account of a robust multi year pipeline of games — Diablo, Overwatch 2, and a Blizzard mobile title — which we don't think Street estimates are fully taking into account."
Activision Blizzard shares are up 75 percent year to date through Monday compared with the S&P 500's 19 percent return. The stock is 6 percent off its Nov. 3 52-week high of $67.03.
The analyst increased his 12-month price target for Activision Blizzard shares to $73 from $67, representing 16 upside to Monday's close.
Merwin predicts the company's next "Diablo" game will be released in 2019 and sell 15 million units. He also forecasts "Overwatch 2" will launch in 2020 and sell 20 million units in its first year. The analyst noted how the previous "Diablo" and "Overwatch" titles sold 30 million units in three years and more than 16 million units in its first year respectively, according to his estimates.
"When adding in the potential for non-recurring titles — Diablo, Overwatch 2, and Blizzard mobile — we believe Street estimates … seem rather conservative, particularly in 2019 and 2020," he wrote.
As a result, Merwin estimates Activision Blizzard will generate earnings per share of $3.04 in 2019 versus the Wall Street consensus of $2.90. He also predicts the company will report earnings per share of $3.40 in 2020 versus the $3.19 average estimate.
Activision Blizzard shares are up 1 percent Tuesday after the report.