Recently, we wrote an Article on Fortnite’s monumental success through the last few months and the effect that it would have on Activision. Since we wrote the article Activision’s stock has fallen over ten percent, dropping 6 billion in market cap.
Fortnite’s popularity doesn’t seem to be fading. Not only has the game gained more users, but Epic Games(The creators of Fortnite) have also come out with a mobile version of Fortnite. Enabling people without a PS4, Xbox, or a computer to access the game.
From our perspective, Fortnite hasn’t slowed down and is more popular than ever. Kids in our school play it in every moment of spare time they have.
Fortnite is doing a good job of coming out with new guns and features to keep the game progressing.
How much room does Fortnite have to grow? Fortnite is getting just about as much publicity possible right now, being featured all over social media, just about everyone has heard about Fortnite. That being said, they simply don’t have much room to grow. Nothing stays cool and popular forever, while Fortnite is popular now, soon the hype around the game will begin to fade. People will get tired of posting about it and talking about it eliminating the buzz around the game. Additionally, Activision is expected to release a similar Fortnite gameplay to their popular games such as Call of Duty and Overwatch. As of now, there is no one else offering the same style gameplay as Fortnite other than PUBG, when Activision and other companies begin releasing a similar style game, it will become harder and harder for Fortnite to maintain their current active user base.
As Fortnite popularity fades, Activision will be able to reclaim much of their lost market share. Understanding that Activision’s recent dip is due to Fortnite’s success, it is crucial to figure out when Fortnite begins to lose popularity. Identifying this could give you a good entry price in Activision’s stock
Disclaimer: Do not invest your own money without doing your own research, our content is not meant to convince you to buy or sell a stock, but simply to share ideas and unique viewpoints.