The stock of video game titan Activision Blizzard (Nasdaq: ATVI) has soared about 73% since “Call of Duty: Mobile” launched in October 2019. But over the four years through the end of 2020, Activision Blizzard’s revenue increased at a compound annual rate of only 5.2%. It may not look like a growth stock right now, but change is afoot.

The company is benefiting from a shift to digital distribution (such as subscriptions and in-game sales): Digital content doesn’t require manufacturing, packaging or distribution, and therefore boosts profit margins. New content releases will be another growth driver for Activision Blizzard, along with growing user engagement and increasing revenue per user.

Two of Activision Blizzard’s top franchises – “Call of Duty: Warzone” and “World of Warcraft” – are among the most-watched games on Amazon’s game-streaming platform, Twitch; average monthly concurrent viewers nearly doubled…

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