Why Activision Blizzard Slumped 12.5% in July

Shares of Activision Blizzard (NASDAQ: ATVI) were already trending lower through most of July on expectations for weak financial results that would be going up against strong pandemic-driven gains a year ago. Because of COVID-19 locking everyone in their homes for the better part of the year last year, video game sales soared and Activision Blizzard's revenue jumped nearly 20% over the year before, which had been a down year for the game maker. With earnings due out Aug. 3, the stock began heading lower, and at the end of July, when the California Department of Fair Employment and Housing announced it was suing Activision for discrimination and sexual harassment, the bottom fell out on its shares.