I remain upbeat about the shares of video game giant Activision Blizzard (ATVI). The company’s financials for the fourth quarter of 2016 were solid. Adjusted revenues increased 15.8% y-o-y to $2.452 bn, with revenue from digital channels, as opposed to packaged software, more than doubling to $1.45 bn. The focus on digital sales instead of physical games that are shipped or sold in stores also helped to increase margins, with operating margin reaching a fourth-quarter record 34%. The improvement was driven by continued strength in names like Overwatch and World of Warcraft, while the performance of the new Call of Duty game, Infinite Warfare, was somewhat disappointing. By the end of 2016, Activision Blizzard had around 450 mn monthly active users across its various platforms, and users played or watched an astonishing 43 bn hours during the year. Adjusted earnings per share surged to 65 cents from 25 cent in the year-ago quarter.In 2016, Activision Blizzard generated a record $2.16 bn in operating cash flow, an increase of 71% y-o-y. This allowed it to announce a two-year $1 bn stock buyback program and increase annual cash dividend to 30 cents per share from 26 cents.The company also initiated 2017 guidance and forecast full-year adjusted profit of $1.85 per share and adjusted revenue of $6.30 bn. Activision Blizzard has a light slate of game releases planned for 2017. However, there will be a Destiny sequel, which management expects to broaden the player base. The company also has a great opportunity in 2017 to drive higher in-game content revenues with three Call of Duty titles that each have enough of a player community for the company to benefit. Besides, the next Call of Duty game planned for the fall is expected to deliver what fans hope and should have much better appeal than Infinite Warfare.I expect shares of Activision Blizzard to continue growth. Medium-term target is $52. $ATVI, Activision Blizzard, Inc / D