Activision Blizzard is a US-based holding company that owns a number of leading video game studios. Its subsidiaries are behind some of the biggest and best-known video games on the market – including but not limited to Guitar Hero, Call of Duty, Candy Crush Saga, and World of Warcraft.
If you’re looking to gain exposure to the video game industry via an investment – buying Activision shares in the UK is easy. All you need is an online share dealing account with a broker that provides access to the NASDAQ exchange.
In this guide, we’ll show you what you need to do to buy Activision shares online in the UK. On top of walking you through the investment process step-by-step, we’ll also discuss the best UK brokers to do this with.
- 1 Step 1: Find a UK Stock Broker to Buy Activision Shares
- 2 Step 2: Research Activision Shares
- 3 What is Activision?
- 4 Activision Share Price History
- 5 Activision Shares Dividend Information
- 6 Should I Buy Activision Shares?
- 7 Step 3: Open an Account and Deposit Funds
- 8 Step 4: Trade or Buy Activision Shares
- 9 Activision Shares Buy or Sell?
- 10 The Verdict?
- 11 eToro – Buy Activision Shares With Zero Commission
- 12 Other Tech Shares
- 13 FAQs
Activision is an American tech company – so naturally, you will find its shares on the NASDAQ.
Not only does this mean that you will need to find an online broker that offers US stocks – but also one that is simple to use, offers competitive dealing fees, and supports your preferred UK payment method.
To help clear the mist – we have selected two leading FCA regulated trading platforms that allow you to buy Activision shares online in the UK.
1. eToro – Buy Activision Shares With Zero Commission
If you’re looking for a low-cost, user-friendly UK stock broker that is ideal for newbies – look no further than eToro. Home to over 13 million traders – this platform allows you to buy shares in Activision with ease. In fact, the platform is 100% commission-free, meaning than no share dealing or maintenance fees apply. This makes eToro unbeatable in the pricing department.
What we also like about eToro is its low account minimums. For example, you can invest from just $50 per stock – and the minimum deposit is just $200. If you’re looking to buy Activision shares as part of a much broader diversification strategy – eToro is home to over 1,700+ shares. This includes 17 UK and international markets, including but not limited to the London Stock Exchange, NYSE, and of course – the Activision-listed NASDAQ.
In terms of key features, eToro is great for educational tools. This includes regular webinars and a full host of handy guides. But, for us, the standout offering at the platform is its social and copy trading features. The former operates as a social media platform but for investing. You can add and reply to comments, ‘like’ posts, and even follow specific traders. In fact, the copy trading aspect of eToro even allows you to ‘copy’ your favourite traders by mirroring their portfolio at the click of a button.
If you’re concerned about safety – you shouldn’t be. This brokerage house is licensed by the FCA. Your funds are also protected by the FSCS – meaning that even if eToro went bust, the first £85,000 held at the platform would be covered. The end-to-end process of opening an account, depositing funds, and buying Activision shares should take you no more than 10 minutes. Supported payment methods include UK debit/credit cards, e-wallets, and a bank transfer.
- User-friendly online stock broker
- Buy shares without paying any commission or share dealing charges
- 1,700+ shares listed on UK and international markets
- Buy shares or trade CFDs
- Social and copy trading tools
- Accepts PayPal
- Mobile trading app
- Holds an FCA licence
- Not suitable for advanced traders that like to perform technical analysis
75% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Trade Activision Share CFDs With Zero Commission
Most of you will be looking to buy Activision shares as part of a long-term investment strategy. That is to say, you plan to hold on to the shares for several years – subsequently riding out the ups and downs of the markets along the way. However, some UK investors prefer to engage in short-term trading – where they might keep a position open for no longer than a few days or weeks.
If this sounds like you, then it might be worth considering leading CFD broker Capital.com. This popular trading platform allows you to trade Activision share CFDs in a 100% commission-free manner. It also offers tight spreads on this market – which currently stands at just $0.17. In addition to this, you also have the option of going ‘short’ if you think that the value of Activision shares is like to go down.
Once again, this can be achieved without paying any trading fees. We should also note that Capital.com allows you to apply leverage on all of its markets. In the case of Activision shares – this stands at up to 5x. As such, a £500 deposit would effectively allow you to trade with £2,500. Although CFD trading is more aligned to those of you with a bit of prior trading experience, Capital.com does offer several safeguards for newbies. For example, you can get started with a demo account facility.
This allows you to trade at Capital.com without risking any of your hard-earned capital. When you feel you are ready to transition to a real money account – the minimum deposit stands at just £20. This is an inconsequential amount of money to risk – especially if you are trading for the first time. Supported payment methods at this platform include heaps of e-wallets, debit/credit cards, or a local bank transfer. Capital.com is authorised and regulated by the FCA.
- Trading on hundreds of US and UK shares
- Educational app for new traders
- AI assistant identifies your weak points
- Trade ideas generated daily
- Excellent charting and analysis interface
- 100% commission free trading
- Cannot build custom trading strategies
72.6% of retail investor accounts lose money when trading CFDs with this provider.
Whether you’re looking to buy Activision shares or invest in similar companies such as GameStop, you always need to do your research.
By this, we mean that it is important to first perform some research so you can assess whether or not Activision represents a viable investment. There are many things to look at in this respect – such as how the company is performing in terms of revenue and operating profit, and where the shares are likely to go in both the short and long run.
With this in mind, below we have outlined some important information to consider before you trade or buy Activision shares.
What is Activision?
Activision Blizzard Inc. – or simply Activision, is a US-based holding company that has a plethora of video game companies under its belt. The firm as it is known today was first founded in 2008 and has since produced and distributed some of the biggest gaming brands in the space. This was a result of Activision and Vivendi Games merging.
To name a few of its most well-regarded titles, this includes the Tony Hawk’s series, Call of Duty, Guitar Hero, Crash Bandicoot, World of Warcraft, Candy Crush, and Heroes of the Storm. All in all, much of the success of Activision as a parent company is fully aligned with the sales performance of its key titles.
As noted above, Activision Blizzard was founded as a merger between Activision and Vivendi Games in 2008. As such, although the former was publicly-listed way back in 1993 – it’s best to focus on the parent company has formed since the merger. So, back in 2008, you would have paid in the region of $16 per stock.
It wasn’t the best of starts for newly formed partnership – with the shares plummeting to lows of $9. However, this was more to do with the downfall of the wider markets – as per the 2008 financial crisis. Nevertheless, it didn’t take long for the shares to rebound – with an upward trend that was to last until September 2018. This saw Activision shares reach highs of $83.
However, the shares then capitulated – losing more than half of their value in less than 6 months. Fortunately, the shares have since resurfaced to the $82-mark as of October 2020. It is important to note that unlike much of the stock markets – Activision shares have actually enjoyed a very fruitful 2020. Starting the year about just under $59 – this represents YTD gains of 38%.
If you’re the type of investor that likes to blend capital gains with regular income payments – you’ll be pleased to know that Activision is a dividend-paying company.
This has been the case since 2010 – with no cuts or suspensions along the way. In fact, it is important to note that Activision has increased the size of its dividend payment each and every year since it started to make distributions.
This stood at $0.15 in 2010 and as per its most recent announcement – $0.41 for 2020. Interestingly, Activision pays a dividend once per year, as opposed to the standard process of making a distribution on a quarterly basis.
So now that you know how Activision shares have performed since 2008 – and the fact that it has increased the size of its dividend payment each and every year since 2010 – we now need to focus on what the future holds for the company. As such, be sure to review the following factors to help you determine which way the shares are likely to go.
Strong Q2 Earnings
Your first port of call when assessing the viability of a share investment is to look at the firm’s most recent earnings report. This gives you a snapshot overview of how the company in question has performed over in the prior three months. Crucially, Activision was behind some very strong results in its most recent earnings report of Q2 2020.
Firstly, sales saw an increase of 38% in comparison to 12 months prior – totalling $1.9 billion. Even more impressively, net income increased by a whopping 77% from the prior year – totalling $580 million. Taking a closer look at these figures – certain sub-divisions performed particularly well. At the forefront of this was hugely popular gaming series Call of Duty. This contributed over 50% of the firm’s total revenue for the quarter.
A Drop-Off in Q3 is Possible
While Q2 figures were nothing short of exceptional – there are two reasons to believe that Activision’s performance in Q3 might not be as impressive.
Firstly, it goes without saying that the demand for video games went through the roof during the pandemic. After all, many countries were forced into lockdown for months on end. This was further amplified by a lack of live sporting events and newly released movie content.
Secondly – and perhaps more concerning is that the fact that a single gaming series – Call of Duty, continued over 50% of total revenues. Unless Activision has similar success with its latest release of the aforementioned series in Q3 – revenues are all-but-certain to decline.
Step 3: Open an Account and Deposit Funds
Ready to trade or buy Activision online right now? If so, we are now going to guide you through the investment process with eToro. This is because the platform allows you to buy Activision shares instantly with a debit/credit card or e-wallet – all on a commission-free basis. But first, you’ll need to quickly open a share dealing account.
Here’s what you need to do.
Head over to the eToro homepage on your desktop or mobile device and open an account. All you need to do is supply the broker with some personal information and contact details.
- Full name
- Date of birth
- Home address
- National insurance number
- Contact details
- Username and password
You will now be asked to upload a copy of your passport or driver’s license. As per anti-money laundering regulations, this is to ensure that eToro is able to verify your identity.
You’ll also need to have your home address verified too. As such, upload a copy of a recently issued utility bill or bank account statement. Upon submitting the above documents, eToro should be able to verify them within a couple of minutes.
Note: You can upload the above documents at a later date if you do not plan on depositing more than $2,250 right now.
Next, it’s time to make a deposit. If you want to benefit from an instantly credited deposit – opt for a debit/credit card or e-wallet. Bank transfers are also supported by processing times can take several days. All deposit methods come with a $200 minimum and 0.5% FX charge,
As soon as your deposit has been processed – you can buy Activision shares at eToro. This part of the process should take you less than a minute. Firstly, enter ‘Activision’ into the search box and click on the result that appears (like the below).
Then, click on the ‘Trade’ button.
Now you need to enter the amount that you wish to invest in Activision. This should be in US dollars and not the number of individual shares you want to buy. The minimum investment is $50 and you don’t need to purchase a full Activision share.
Finally, click on the ‘Open Trade’ button to complete the investment commission-free process.
The general market consensus is that Activision shares are a firm buy. Much like is based on the strong performance of the company to date – especially its Q2 earnings which smashed through market expectations. However, certain risks are present, too. At the forefront of this is a potential drop-off in Q3 now that global economies are slowly but surely beginning to open up. Additionally, more than 50% of the firms Q2 revenues were contributed by the Call of Duty series.
Activision is one of the hottest stocks of this pandemic-stricken financial year – with YTD gains of 38%. If you are planning to jump on the bandwagon by making an investment today – you can buy Activision shares online in the UK at eToro without paying any commission. There are no registration or monthly maintenance fees either – and the end-to-end investment process can be completed in less than 10 minutes when using a UK debit/credit card or e-wallet.
Simply click the link below to get started with this top-rated FCA broker!
75% of retail investor accounts lose money when trading CFDs with this provider.
Looking to invest in other tech shares? Check out the companies below.
- Micron Technology
What does Activision do?
Activision Blizzard is the parent company of several leading video gaming developers. Some of its most popular titles include Call of Duty, Tony Hawk's, and World of Warcraft.
What stock exchange are Activision shares listed on?
Activision shares are listed on the NASDAQ exchange in the US.
Do Activision shares pay dividends?
Yes - Activision has an excellent track record when it comes to dividends. In fact, it has never missed a dividend payment since it started making distributions in 2010. Even more impressively, each and every dividend has increased in value. Activision dividends are distributed annually.
How much is Activision worth?
At the time of writing in October 2020 - Activision has a market capitalization of just over $63 billion.
How do you buy shares in Activision in the UK?
Activision shares are listed on the NASDAQ exchange in the US - meaning that you need to open a share dealing account with an FCA broker that gives you access to American stocks. eToro is a great option in this respect - as you can buy Activision shares commission-free.