I was surprised to learn that the HK debacle with Activision Blizzard barely had any effect on its stock.
In fact, a lot of the time, bad press seems to barely affect the stock market at all.
Why does nothing happen a lot of the time?
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Was the whole debacle actually bad press from the view of an investor?
It showed that Activision Blizzard is willing to take a PR hit among their customers in liberal countries in order to maintain their permission to operate on the Chinese market.
The Chinese gaming market is a market which is currently growing very fast. There is a lot of money to be made there, and it is expected to grow even more over the next decades. But that market is not very accessible for foreign companies. The Chinese government hand-picks companies which get access to it, both for censorship reasons and for market protectionism reasons.
And while gamers are a demographic which consists of a couple very loud activists with a short attention span and a silent majority who couldn't care less about drama, autoritarian governments do not forget and forgive that easily.
So choosing the Chinese government over the Western fans could be seen as a smart move for many investors which will rather increase the value of the company in the long-term.
The real question is whether or not investors think that a specific kind of bad press will or will not cause a permanent reduction in sales.
If investors think this is a tempest in a teapot, and that most people won't stop playing Call Of Duty just to show solidarity with protesters half way around the world, then there's no reason for them to sell Activision Blizzard shares.