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Electronic Arts Inc. (ERTS) Message Board

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  • ertsinvestor ertsinvestor Mar 13, 2002 4:34 PM Flag

    Technicals

    > TTWO doesn't have to be #1 to maintain a market cap 1/10th the size of EA and a P/E valuation less than 1/3rd.

    Based on what opinion? Does TTWO really know what they are going to earn next year? They're too busy cooking the books in the back room, maybe you can visit them in jail next year and see what they think then.

    I know whatever ERTS is saying they are going to make next year, it's going to come in higher than that. Believe me. So, when EA makes $2.50 or even $3.00/share next year, how will the $60/share price look then?

    > The fact that they're competing and (currently) winning is a huge achievement which means they're exceeding expectations. ERTS is not currently #1 which means they're not meeting the expectations of a leader, and none of their own games have been #1 in the console charts since October.

    Rab, all that matters is how much they make quarter over quarter, year over year. Weekly, Monthly, semi-annually or even annually sales charts don't mean dick. Is the company making what they said they'd make? Yes. Are they well positioned to meet or exceed earnings expectations in the future? Hell yes. That's it, end of story. ERTS is the #1 third-party software publisher in the world. They have been for years, they will be for years. Sounds nice doesn't it? Fine, put it on your annual report if you want, but bottom line it's a side effect of their success, not the reason behind their success.

    > They also haven't had an internally developed fully owned IP console title since... how many years must we go back? Do we have to go all the way back to the Sega MasterSystem? Can a leader last forever without innovation?

    Didn't you just answer your own question? (Yes!)

    > Well that's never been the case in any other industry and that's why SEGA will take the #1 position.

    Because Sega has HOW MANY internally developed fully owned IP console titles in the pipeline?

    > Yes future year over year comparisons may be difficult for TTWO but also they may not be because GTA4 with online could be incredibly massive, and GTA3 PC has multiplayer features and should do very well.

    Damned right year over year comparisons are going to kill TTWO. How much blood can they squeeze out of that turnip called GTA? ONE GAME? C'mon, really. And why will GTA4 online (whenever that comes out....2003...2004?) do any better than Motor City Online? I thought online was dead Rab?

    > And a hit franchise helped another smaller company ATVI to a 600% rise in 2 years. How much has ERTS gone up in 2 years? Oh, they're flat, that's right. No gains.

    We'll see how long that lasts.

    Oh, and you can make as much fun as you want about EA.com (which is 99% of the reason why ERTS hasn't gone anywhere in the past 2 years), they deserve anything/everything you have to say about them! :)

 
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