Microsoft’s (MSFT) – Get Microsoft Corporation Report acquisition of embattled video gaming company Activision Blizzard (ATVI) – Get Activision Blizzard, Inc. Report is a good move for the software behemoth, argues Stephen “Sarge” Guilfoyle.
Microsoft CEO Satya Nadella’s insight into what direction the company should move into has always been impressive, he wrote recently. The $68.7 billion all cash deal would give Microsoft a larger gaming offering since Activision offers Call of Duty, Warcraft, and Candy Crush. Microsoft’s gaming options include Doom and Minecraft.
“Remember what I have always said about Microsoft CEO Satya Nadella,” Guilfoyle wrote. “The guy is one of those few who simply speaks on another level, and even though you are confident that you are not stupid, you start to wonder if in fact you are. Nadella sees things before others do, and he adapts his firm to what will be instead of what is or what has been.”
Once the deal is finalized, Microsoft would be a much bigger player and it would rank below Tencent Holdings (TCTZF) and Sony Group (SONY) – Get Sony Group Corporation Report based on gaming driven revenue.
Microsoft remains a good stock to own since Office 365, LinkedIn, Dynamics 365, Server Products and Cloud, Azure and other Cloud windows all reported double digit year over year growth and traders can follow an options strategy, Guilfoyle argues.
“Microsoft is consistently good at everything it does,” he wrote. “Readers know that I am long Microsoft and the name has been a Sarge fave seemingly forever. I am not discouraged as a Microsoft investor in the least. If anything, this confirms for me why I cast my lot with Nadella in the first place.”
