Activision Blizzard (ATVI) should go up with help from GS

Shares of Activision Blizzard, Inc. (Public, NASDAQ:ATVI) have been trending upwards since March, even as June Video Game Sales posted the largest year-over-year decline in nine years.

How are shares staying afloat? According to Goldman Sachs latest 13F, they own a substantial position in Activision.  

With a $500M bet on Activision, it's one of Goldman Sachs top 25 holdings in terms of Value. It's in their best interests to keep the share price heading north.

Of course, ATVI isn't going up purely on manipulation. ATVI's growth potential is pretty huge. Currently pegged at a rate of 18%.

There is a giant shift going on in the gaming business right now. As people spend more time online on social networking sites like Facebook and MySpace, gaming giants and fledgling developers are rushing to shift their focus from single players to crowds.

For the best titles gamers typically buy a disc in stores for $40 and then pay a $15 monthly subscription fee. The genre's undisputed champion, Activision Blizzard's World of Warcraft, boasts 11.5 million subscribers worldwide and generates an estimated $440 million in annual operating income (Ebitda) on $1.1 billion in sales.

The Analyst community has been pimping a $13 - $16 range for ATVI all year - with shares trading just under $12 today, it's a good time to be long ATVI.