SANTA MONICA—On Friday, August 28, Activision Blizzard Inc. became part of the S&P 500 Index.
The S&P 500 Index, also known as Standard & Poor’s 500, contains a list of 500 companies that have common stock interest in the NYSE and NASDAQ. The index is an ideal measure of the general level of stock prices because it includes growth and value stock.
Growth stock is company stock that generates a positive increase in money in which the revenues and earnings are predicated to rise at an expedient rate in comparison with average companies. Value stock is a stock that makes exchanges at a much lower price in comparison to things like sales, earnings and other factors. The index was first introduced in 1923, but it was revised.
Activision Blizzard Inc. is a parent corporation based in America, that consists of Activision, Blizzard Entertainment, and Sierra Entertainment. The company is based in Santa Monica and is well-known for the video game series “Call of Duty” and the online game “World of Warcraft.” The company first merged together with Vivendi Games in December 2007, but split in 2013 due to some legal problems.
Activision Blizzard will be replacing Pall Corp on the S&P 500 index, which is an industrial machinery company. Pall Corp is being acquired by Dannah Corporation, which is another company that already has a place on the S&P 500 Index. Activision Blizzard will be the second gaming company on the index, joining Electronic Arts which became the first.
After the closing of the stock on Friday, there was a 7 percent rise in the stock with the addition of the company being included on the S&P 500 Index. This year alone the projected revenue for Activision Blizzard is $4.4 billion. It is known as the fifth largest company by revenue.
Activision Blizzard will also be joining other popular companies on the index like Disney, Time Warner Cable, Mattel and many others.