After reviewing Activision Blizzard finances, what advice on buy/sell would you give to possible investors?

the Exchange Act or the Securities Act of 1933. COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN among Activision Blizzard. Inc., the NASDAQ Composite Index, the S&P 500 Index, and the RDG Technology Composite Index The following graph and table compare the cumulative total stockholder return on our common stock, the NASDAQ Composite Index, the S&P 500 Index, and the RDG Technology Composite Index. The graph and table assume that $100 was invested on December 31, 2011 and that dividends were reinvested daily. The stock price performance on the following graph and table is not necessarily indicative of future stock price performance. $400 $350 $300 $250 $200 $150 $100 $50 so 12/12 12/13 12/14 1215 12/16 _a_ Activision Blizzard, Inc.-a--NASDAQ Composite ..o .. S&P 500- -RDG Technology Composite 12/12 12/13 Fiscal year ending December 31: Activision Blizzard, Inc NASDAQ Composite S&P 500 RDG Technology Composite s 100.00 s 87.44 S 148.75 s 169.68 S 329.31 S 309 100.00 116.41 165.47 188.69 200.32 216.54 100.00 116.00 153.58 174.60 177.01 198.18 100.00 114.61 15295 178.50 183.08 206.8i Cash Dividends We have paid a dividend annually since 2010. Below is a summary with the most recent dividend declared by the Board of Directors that will be paid in 2017: of cash dividends paid over the past three fiscal years. along Dividend Payment Date Per Share Record Date Year 2016 2015 2014 Amount S 0.30 3/30/2017 5/10/2017 S 0.26 3/30/2016 5/11/2016 S 0.23 3/30/2015 5/13/2015 S 0.20 3/19/2014 5/14/2014 ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in millions, except share data) At December 31 2016 At December 31 Assets Current assets: 3,245 1,823 679 336 Cash and cash equivalents Accounts receivable, net of allowances of $261 and $343, at December 31,2016 and December 31,2015, respectively Inventories, net Software development Other current assets 732 49 421 Total current assets 4.830 sh in escrow Software development Property and equipment, net Deferred income taxes, net Other assets Intangible assets, net Goodwill 54 80 275 283 401 1.858 9,768 482 7,095 15,246 Total assets 17452 $ Liabilities and Shareholders' Equity Current liabilities 284 1,702 625 2,611 4,074 222 $ Accounts payable Deferred revenues Accrued expenses and other liabilities 1,628 806 2,656 4,887 Total current liabilities Long-term debt, net Deferred income taxes, net Other liabilities 746 483 Total liabilities 8,333 7,178 Commitments and contingencies (Note 19) Shareholders' equity Common stock, $0.000001 par value, 2,400.000.000 shares authorized, 1,174,163,069 and 1.163,179,140 shares issued at December 31, 2016 and December 31, 2015, respectively Additional paid-in capital Less: Treasury stock, at cost, 428,676,471 shares at 10,442 10.242 December 31,2016 and December 31,2015 Retained earnings Accumulated other comprehensive loss (5.563) 4,869 5637) 4.096 629) Total shareholders' equity Total liabilities and shareholders' equity 8,068 15,246 17452 $ The accompanying notes are an integral part of these Consolidated Financial Statements F-3 ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in millions, except per share data) For the Years Ended December 31 2016 Net revenues Product sales Subscription, licensing, and other revenues 2,196 2,447 $ 2,786 4.412 2,217 1,622 6,608 4,664 4.408 Total net revenues Costs and expenses Cost of revenues- product sales: Product costs 741 331 872 370 Software royalties, amortization, and intellectual property licenses 265 st of revenues-subscription, licensing, and other revenues: Game operations and distribution costs Software royalties, amortization, and intellectual property licenses Product development Sales and marketing General and administrative 851 471 958 1,210 634 69 646 734 380 29 571 712 417 Total costs and expenses Operating income Interest and other expense (income), net 5,196 3,345 3,225 1,183 202 1,412 214 92 1,319 198 Loss on extinguishment of debt Income before income tax expense 1,106 1,121 981 Income tax expense Net income 140 229 146 $ 966 $ 892 835 Earnings per common share Basic Diluted 1.30 $ 1.21 $ 1.14 $ 1.28 1.19 1.13 Weighted-average number of shares outstanding Basic Diluted 740 754 728 739 716 726 Dividends per common share $ 0.26 $ 0.23$ 0.20 The accompanying notes are an integral part of these Consolidated Financial Statements. F-4 f Contents ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in millions) For the Years Ended December 3 2016 201 2014 Net income 966 $ 892 835 Other comprehensive income (loss ): Foreign currency translation adjustments Unrealized gains (losses) on forward contracts designated as hedges, net (29) (326) (371) 4) 330) of tax Total other comprehensive income (loss) Comprehensive income S 970 562 $ 16 The accompanying notes are an integral part of these Consolidated Financial Statements F-5 the Exchange Act or the Securities Act of 1933. COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN among Activision Blizzard. Inc., the NASDAQ Composite Index, the S&P 500 Index, and the RDG Technology Composite Index The following graph and table compare the cumulative total stockholder return on our common stock, the NASDAQ Composite Index, the S&P 500 Index, and the RDG Technology Composite Index. The graph and table assume that $100 was invested on December 31, 2011 and that dividends were reinvested daily. The stock price performance on the following graph and table is not necessarily indicative of future stock price performance. $400 $350 $300 $250 $200 $150 $100 $50 so 12/12 12/13 12/14 1215 12/16 _a_ Activision Blizzard, Inc.-a--NASDAQ Composite ..o .. S&P 500- -RDG Technology Composite 12/12 12/13 Fiscal year ending December 31: Activision Blizzard, Inc NASDAQ Composite S&P 500 RDG Technology Composite s 100.00 s 87.44 S 148.75 s 169.68 S 329.31 S 309 100.00 116.41 165.47 188.69 200.32 216.54 100.00 116.00 153.58 174.60 177.01 198.18 100.00 114.61 15295 178.50 183.08 206.8i Cash Dividends We have paid a dividend annually since 2010. Below is a summary with the most recent dividend declared by the Board of Directors that will be paid in 2017: of cash dividends paid over the past three fiscal years. along Dividend Payment Date Per Share Record Date Year 2016 2015 2014 Amount S 0.30 3/30/2017 5/10/2017 S 0.26 3/30/2016 5/11/2016 S 0.23 3/30/2015 5/13/2015 S 0.20 3/19/2014 5/14/2014 ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in millions, except share data) At December 31 2016 At December 31 Assets Current assets: 3,245 1,823 679 336 Cash and cash equivalents Accounts receivable, net of allowances of $261 and $343, at December 31,2016 and December 31,2015, respectively Inventories, net Software development Other current assets 732 49 421 Total current assets 4.830 sh in escrow Software development Property and equipment, net Deferred income taxes, net Other assets Intangible assets, net Goodwill 54 80 275 283 401 1.858 9,768 482 7,095 15,246 Total assets 17452 $ Liabilities and Shareholders' Equity Current liabilities 284 1,702 625 2,611 4,074 222 $ Accounts payable Deferred revenues Accrued expenses and other liabilities 1,628 806 2,656 4,887 Total current liabilities Long-term debt, net Deferred income taxes, net Other liabilities 746 483 Total liabilities 8,333 7,178 Commitments and contingencies (Note 19) Shareholders' equity Common stock, $0.000001 par value, 2,400.000.000 shares authorized, 1,174,163,069 and 1.163,179,140 shares issued at December 31, 2016 and December 31, 2015, respectively Additional paid-in capital Less: Treasury stock, at cost, 428,676,471 shares at 10,442 10.242 December 31,2016 and December 31,2015 Retained earnings Accumulated other comprehensive loss (5.563) 4,869 5637) 4.096 629) Total shareholders' equity Total liabilities and shareholders' equity 8,068 15,246 17452 $ The accompanying notes are an integral part of these Consolidated Financial Statements F-3 ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in millions, except per share data) For the Years Ended December 31 2016 Net revenues Product sales Subscription, licensing, and other revenues 2,196 2,447 $ 2,786 4.412 2,217 1,622 6,608 4,664 4.408 Total net revenues Costs and expenses Cost of revenues- product sales: Product costs 741 331 872 370 Software royalties, amortization, and intellectual property licenses 265 st of revenues-subscription, licensing, and other revenues: Game operations and distribution costs Software royalties, amortization, and intellectual property licenses Product development Sales and marketing General and administrative 851 471 958 1,210 634 69 646 734 380 29 571 712 417 Total costs and expenses Operating income Interest and other expense (income), net 5,196 3,345 3,225 1,183 202 1,412 214 92 1,319 198 Loss on extinguishment of debt Income before income tax expense 1,106 1,121 981 Income tax expense Net income 140 229 146 $ 966 $ 892 835 Earnings per common share Basic Diluted 1.30 $ 1.21 $ 1.14 $ 1.28 1.19 1.13 Weighted-average number of shares outstanding Basic Diluted 740 754 728 739 716 726 Dividends per common share $ 0.26 $ 0.23$ 0.20 The accompanying notes are an integral part of these Consolidated Financial Statements. F-4 f Contents ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in millions) For the Years Ended December 3 2016 201 2014 Net income 966 $ 892 835 Other comprehensive income (loss ): Foreign currency translation adjustments Unrealized gains (losses) on forward contracts designated as hedges, net (29) (326) (371) 4) 330) of tax Total other comprehensive income (loss) Comprehensive income S 970 562 $ 16 The accompanying notes are an integral part of these Consolidated Financial Statements F-5