Value Investing Help with bottom-up approach

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Help with bottom-up approach Posted: 31 Oct 2018 09:54 AM PDT Hi guys, I've been doing bottom-up due diligence for Activision Blizzard, inc. (ATVI). I'm finding that they have been focusing a lot of their revenue generation from actual software (product) sales to micro transactions, in-game purchases, and DLCs. This is causing their revenue q/q CaGR of about 7% with a few outlier quarters (release of big name products). However, I am seeing a constant q/q decrease of monthly average users (MAU) CaGR of -17% in tandem with a CaGR of average revenue per user (ARPU) q/q of 45%???? So basically, their revenues and ARPU are increasing while their biggest management operational metric (MAU) is dropping fast (all three segments, activision, blizzard, king are seeing drops). I'm lost here trying to find the missing information. I'm thinking people are spending more money on in-game purchases, but by that huge of a margin? I'm also considering ATVI's investment into the eSports and how that scene is blowing up but ATVI's biggest revenue generation is still its software. I know that this is not nearly enough information to make a judgement but just want to see what you guys think. Thanks guys. submitted by /u/azniqqa [link] [comments]

Social Capital 2018 Annual Letter Posted: 31 Oct 2018 01:52 PM PDT submitted by /u/Erdos_0 [link] [comments]

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