Analysis of Atari share price

Many investors are interested in Atari's stock and its price. But this stock must first of all be analyzed correctly and this of course requires an excellent knowledge of this company. So now we offer you to find out more about Atari Group with some general stock market data about the company, but also with detailed information about the company and its activities, as well as its most important competitors and partners. An analysis of the strengths and weaknesses of this group will then be proposed to you and will allow you to establish the basis of your analysis. Finally, we will explain in more detail how to carry out your fundamental analysis of this stock by indicating the elements to be taken into account in priority in the news.

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Elements that can influence the price of this asset:

Analysis N°1

The creation of new licenses or the release of new games are of course important events for Atari's stock.

Analysis N°2

We will also follow the releases of games and licenses of the main competitors of this group and on similar segments.

Analysis N°3

The numerous partnerships set up by Atari can also prove to be very influential events and can lead to rapid movements, usually upwards, of this stock.

Analysis N°4

We will keep a close eye on the various financial communications and announcements of this group such as forecasts and growth targets and on the actual results publications as well as on the correspondence between the two.

Analysis N°5

Finally, we will also follow the evolution of Atari's positioning in the field of games on smartphones, which is of course considered as a particularly profitable segment for the years to come.

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General presentation of Atari

To begin our overview of this stock and to better understand how Atari stock may behave in the future, it is of course very important to know in detail the activities of this company. This is what we are proposing to you right now.

The Atari Group is a French company specializing in interactive entertainment and multiplatform licensing. It is also known as a pioneer in the field of video games and as an innovative company. Indeed, Atari is at the head of a portfolio of more than 200 different franchises with very popular brands in the world such as Asteroids, Centiped, Missile Command, Pong or Test Drive.

Thanks to a very diversified portfolio of intellectual properties, the Atari Group is able to develop many very popular and attractive video games that are mostly accessible online, whether through a simple Internet browser, by downloading to a computer or via the social network Facebook. Of course, Atari also develops game content for smartphones, tablets and other connected devices. Finally, as a video game specialist, Atari is also behind the development of many games for game consoles such as Microsoft, Nintendo and Sony.

It is also important to note here that the Atari group benefits from another source of income than games per se. Indeed, thanks to its very strong brand and its many popular franchises, Atari benefits from licensing agreements in other sectors such as the derivative products sector, the media or publishing.

Analysis of Atari share price
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The major competitors of Atari

As you know, the video game industry is a very competitive business. Online and console game publishers are vying for market share and leadership in the industry, and Atari is up against some of the biggest names in the business. It is therefore very important for investors in this stock to be familiar with the main players in the international video game sector. Studying each year the evolution of this ranking and the market shares of each of these players is of course an essential thing to analyze the Atari share. Indeed, Atari's share price is sensitive to the communications and publications of its main competitors and any news in this sector will therefore be important. So, here we propose you to discover who are the most profitable publishers of the year 2017 with a ranking by revenue.

Tencent

The number one video game company in terms of profitability in 2017 was Tencent Group, which managed to hold that spot for the second year in a row thanks to a very significant increase in revenue.

Sony

In second place in this ranking we find the Sony group with almost half the turnover of the leader Tencent.

Microsoft

In fourth place, we find a historical publisher and also developer of game consoles, Microsoft.

Activison Blizzard

Almost equal to the American giant and occupying the fifth place in this ranking, the French group Activision Blizzard remains among the big names in this sector with very popular licenses.

The NetEase group

less popular but very profitable, occupies the sixth place in the world ranking of video game publishers.

EA

The EA Group, also known in the gaming industry for its many popular licenses ranks eighth in terms of revenue in 2017.

Nintendo

The ninth place is occupied by the Japanese Nintendo which, like Atari, is one of the pioneers of this sector.

Bandai Namco

Finally, the Bandai Namco group comes tenth and last in this ranking.


The major partners of Atari

The history of Atari shows us that this company has often been able to rely on its partners to increase its development. Indeed, on many occasions, this company has approached certain competitors or companies in complementary sectors of activity within the framework of partnerships or strategic alliances. To better understand the interest of such partnerships for this company, we propose you to discover here some of the recent partnerships of this group.

Bandai Namco Games

In 2014, for example, the Atari group tied up a partnership with the Japanese group Bandai Namco Games and its European subsidiary which was actually the renewal of a former strategic partnership between the two companies. This agreement was for Bandai Namco to acquire exclusive physical distribution rights in Europe for Rollercoaster Tycoon World, which is one of the most anticipated PC games of 2015. However, Atari made sure to keep the digital distribution rights internationally outside of the distributors' websites, which are also covered by Bandai Namco. The interest for Atari of this strategic partnership is that it can support the development of its digital distribution activities worldwide. This agreement also allows Atari to generate additional revenues thanks to Bandai Namco's very efficient physical distribution as well as the outsourcing of physical distribution activities, which offers an interesting reduction of its logistics and marketing costs. Finally, of course, it also allows the Atari Group to sign distribution agreements with other global companies outside the European sector alone.

Mattel

Later in 2017, it is with Mattel, a company specialized in the world of toys and the company StartApp specialized in mobile technology that the Atari group has set up a strategic partnership aimed at developing new content for its RollerCoaster Tycoon Touch license thanks to the brands of the Mattel portfolio. RollerCoaster Tycoon is one of the best-selling franchises in the history of PC gaming. This innovative simulation game is now adapted to smartphones with a 3D version and allows players to create, manage and share with other players the most spectacular theme parks.

Fig

Finally, still in 2017, Atari has chosen, through its subsidiary Vagabond Production Corp, to partner with the company Fig which is another video game publisher very well known in particular for its games like Phoenix Point, Pillars of Eternity, Deadfire or even Wasteland 3. This partnership agreement should allow the two companies to jointly develop new video games, including a game based on a historical intellectual property of the Atari group as well as the development of a new franchise of the group. The Fig Group is an innovative business model that uses gamers to both enhance the development of certain games and share the financial benefits of the developers and publishers with those gamers. This new method has attracted the French publisher for its future developments.

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The factors in favour of a rise in the Atari share price:

To understand how the results and therefore the growth of the company Atari is likely to behave in the medium or long term, it is essential to try to understand how this company can face the threats and possibly the future challenges it will encounter. To do this, it is ideal to know the strong and weak points of this company, which we propose to discover together now.

Let's start this comparative analysis by looking at the main strengths of this company. Indeed, the group has some undeniable strengths that should allow it to stand out from the competition in the years to come or to take advantage of certain opportunities including :

  • First of all, it should be noted that the group's customer base is quite solid because the brand has managed to build up customer loyalty over time. This allows it to market its new products more easily without having to approach new prospects.
  • The group is also innovative and capable of creating new products that surprise the market. To do this, it makes significant investments each year in research and development in order to stay ahead of the market.
  • From a financial point of view, the Atari Group also benefits from some interesting assets. Indeed, thanks to the sale of video games, the group has succeeded in having a significant cash flow and thus benefits from sufficient cash to make investments where necessary.
  • Another of the group's great strengths is its portfolio of existing products and games. Indeed, Atari has a portfolio of many world-famous games that have become cult favorites over the years, guaranteeing sales every year even in the absence of a new hit.
  • Finally, the group's strengths also include the fact that it constantly seeks to set up strategic collaborations with major brands or events, which enables it to benefit from rapid publicity and to gain notoriety more effectively.
The factors in favour of a drop in the Atari share price:

As you will have understood, the Atari group does not only have strengths but also some weaknesses that you should also take into account. These elements could indeed penalize the company in case of difficulty and thus lead to a drop in the value of its share on the stock market. Here are the main weaknesses of this company.

  • Of course, the main shortcoming of the Atari Group is the increasingly strong competition in the industry. Although it was once a market leader, Atari is now being overtaken by some very large companies in the sector, which it is finding it difficult to compete with.
  • Another major problem for Atari is that the company has not succeeded in its generational shift in the sense that the younger target group is still almost out of reach. Yet, it is undoubtedly in this segment that the most important opportunities for growth and development of turnover lie.
  • It is also regrettable that the group has certain shortcomings in terms of the diversity of its product offering, which remains mainly oriented towards games. Indeed, Atari is not very present or even absent from certain segments such as connected objects, virtual reality or networked games, which nevertheless represent interesting potential sources of profit.
  • Finally, the last major flaw of the Atari group concerns without any doubt the market itself. Indeed, the video game market and sector is considered as a mature market and therefore currently offers little possibility of growth. It will therefore be increasingly difficult for this company to increase its turnover without taking market share from its competitors, as demand should not really grow in the years to come.

It goes without saying that the elements we have just mentioned are likely to change over time according to current events. You should therefore check them before using them.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the different methods of investing in Atari stock?

To speculate on the price of a stock on the stock market, investors often choose to buy these securities and add them to their stock portfolio. However, there are other ways to make this type of investment today, such as using online CFDs. These contracts for difference are indeed offered by online brokers and allow you to speculate on the rise or fall of a stock on the stock market without having to actually buy it.

How do I know if Atari's share price will rise?

This is a question that all stock market investors ask themselves. To know if the Atari share will go up or, on the contrary, lose value, in the more or less long term, it is indeed necessary to carry out precise analyses of this value. It is thus necessary to seek to obtain quality signals by oneself by carrying out in particular a technical analysis and a fundamental analysis of this share.

How to study the financial results of the Atari Group?

A good analysis of the Atari share also requires a serious and careful analysis of its financial results. It is advisable to read the company's annual and interim financial statements, but also to systematically compare the published figures with the company's own forecasts or the expectations of market analysts. This will help you determine the growth potential of this stock.

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