TCEHY/ATVI - Video Games

#longshortcompetition Long: TCEHY / Short: ATVI

Not only do the technicals show a downtrend with support for Tencent. I for one can see the writing on the wall for activision blizzard . They aren't a "bad" company. But boy oh boy have they been taking L after L after L.

Whether its corporate structure, actual incompetence, etc. As someone who grew up on games from age 7-20, a few activision blizzard ones here and there, I've seen the gaming industry evolve MASSIVELY since I first started playing around 2007. Blizzard simply does not know what they're doing.

Diablo Immortal, Heroes of the Storm, Overwatch, World of Warcraft. All falling off a cliff overtime. Losing their player base and fans. Berkshire Hathaway is not going to change gamers. Don't even get me started on the work culture. The PR of this company AND the product have been dog water. I feel like it gets worse before it gets better for ATVI . I feel like throwing money at this can only work so much. They need to listen to actual gamers, their audience, not shareholders to dominate market share. I feel that this will be their biggest problem in the future, not monetization. A part of me wants to be wrong because I grew up with this company but I simply let the chart tell me what it wants to do.

Tencent has an enormous advantage. HUGE in China. Owns Riot Games, half of Epic Games, 5% of Activision Blizzard . Highest earning video game company in the world. They have a diversified gaming portfolio. Data Giant. Most popular game is League of Legends.
I do not ignore the issues of Tencent becoming unpopular, government issues with data, tax, fines, antitrust, etc. Both companies have black swan potential, Tencent more so. But overall If I had to hold either company for 2-3 years, its Tencent. I'm more bearish ATVI than Bullish TCHEY.
Also tradingview, I love your software <3.

~Multicultural Money

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