EA - Electronic Arts Inc.
| Previous Close | 94.62 |
| Open | 94.59 |
| Bid | 92.75 x 800 |
| Ask | 93.38 x 800 |
| Day's Range | 92.61 - 95.73 |
| 52 Week Range | 73.91 - 130.57 |
| Volume | 2,869,772 |
| Avg. Volume | 3,683,481 |
| Market Cap | 27.381B |
| Beta (3Y Monthly) | 1.17 |
| PE Ratio (TTM) | 13.14 |
| EPS (TTM) | 7.07 |
| Earnings Date | Oct 29, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 111.48 |
- Simply Wall St.
Have Insiders Been Buying EA Education Group Inc. (CNSX:EA) Shares This Year?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be...
- InvestorPlace
Microsoft Scores Points as it Solidifies its Video Gaming Ecosystem
A little less than a year ago, yours truly underscored the idea that Microsoft (NASDAQ:MSFT) was getting very serious about video games. Though it had been in the business for decades to various degrees, it had never been a priority that made a meaningful impact on MSFT stock. Not even the launch of the first Xbox in late-2001 proved to be major piece of its revenue puzzle.Source: Shutterstock Every few months though, the company takes a solid leap forward down the gaming path. The latest leap? Microsoft says it's no longer going to release any "Xbox exclusive" games for rival consoles like the Switch, from Nintendo (OTCMKTS:NTDOY), and the Sony (NYSE:SNE) PlayStation.Tuesday's announcement superficially answered a lingering question about Microsoft's recent acquisition of game publishers like Double Fine and Obsidian. Both had been platform-agnostic, developing titles for any platform of their choice. From now on, they'll only be making video games for the Xbox.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Exclusive PlansThe announcement admittedly calls into question Microsoft's understanding of the word "exclusive." The message delivered goes beyond the words, though. The fact that the company made a point of saying anything at all on the matter makes it clear the software giant has a very specific plan for its video game business. It wants to cultivate its own gaming ecosystem, so to speak.That's part of a significant evolution, too, namely Microsoft's relatively nascent willingness to bring in outside coders, publishers, and ideas into their inner circle and then close the gate. It's not only a financial risk, but a reputational one as well.It's the shape of things to come for the video gaming industry though, now that websites like Steam have democratized the business, and now that sites like GOG.com (Good Old Games) have made a universe of older but still play-worthy titles available at a fraction the original game prices. Protectionism is the new norm because it has to be.Just ask game publishers like Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:EA), both of which have rethought their business models from the ground up. * 10 Stocks Under $5 to Buy for Fall EA is wading deeper into subscriptions and streaming, while snagging outfits like Industrial Toys, GameFly and Respawn Entertainment. Activision Blizzard has seemingly figured out where it went wrong with gamers last year as well. Even Nintendo, which is generally considered a console maker but also develops many of the games played on its console, has rolled out the red carpet for indie game developers, and has introduced subscription-based productsIn all cases, video game companies are slowly moving towards a model that excludes other hardware and software providers, and cultivates self-serving, one-stop shops. Potential Impact on Microsoft StockRefusing to offer its home-grown games on other platforms isn't an earth-shattering development. There were only a couple of games from Microsoft that crossed that line -- Ori and the Blind Forest, along with Cuphead, for example -- and Microsoft never suggested it would be otherwise.Still, the company has proverbially burned the boat. It won't be readily facilitating any sort of revenue growth for any sort of rival.It's not the first step the Redmond-based outfit has taken in this direction. Less than a year ago, it launched a subscription-based service called Xbox All Access, which included a lease-to-own Xbox console. By that time it was already offering Game Pass and Live Gold, both of which also made gaming affordable on a relatively expensive Xbox console.Then in June of this year, the company revealed that its next Xbox would be able to play games that were playable four versions of the Xbox ago. The generous retro-playable option makes a huge vault of older and largely inaccessible titles suddenly playable again, further drawing gamers back into the ecosystem where they can be monetized in multiple ways.It still won't make a meaningful dent, for better or worse, in the value of MSFT stock. The company is still mostly about cloud-based productivity software and Azure. Though the company doesn't disclose much in the way of details, it was willing to divulge $10 billion worth of annual gaming revenue had been generated as of the middle of last year. That's roughly one-tenth of its total business. * 10 Undervalued Stocks With Breakout Potential By doubling down again on becoming a self-contained soup-to-nuts gaming name, though, this piece of Microsoft's total revenue could readily ramp up to a fifth of its top line in the foreseeable future. Looking Ahead for MSFTGaming is not a reason to buy Microsoft stock … at least not yet. And, it's certainly not a reason to hold your breath waiting for the day video games become the breadwinner for the company.The clear decision to leverage the addition of indie developers Double Fine and Obsidian for its own (and only for its own) purposes, though, is another piece of evidence of Microsoft's gaming ambitions. If this works out as well as other efforts made by the company, like the penetration of the cloud computing arena on the back of Azure, there's much for current and would-be owners of MSFT stock to be excited about. At stake is a bigger piece of a video gaming market that's expected to be worthShareholders just need to be patient.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Microsoft Scores Points as it Solidifies its Video Gaming Ecosystem appeared first on InvestorPlace.
- GuruFocus.com
David Rolfe Adds 4 Stocks to Portfolio in 2nd Quarter
Guru’s largest new position is in telecom company Motorola Solutions Continue reading...
- Market Realist
Gamescom 2019: Upcoming Titles on PS4 and Stadia
Gamescom 2019 began this week with the announcement of some exciting cross-platform games. Developers certainly didn't disappoint.
- Bloomberg
Two Homegrown Companies Defy Argentina’s Gloom
(Bloomberg Opinion) -- Investors in Argentina would seem to have no peers among global losers.After voters resoundingly rejected President Mauricio Macri and his free-market policies in primary elections earlier this month, the stock market, as measured by the S&P Merval Index, lost almost half its value in the biggest crash in at least six decades. The country’s currency, the peso, suffered its biggest decline since December 2015. The government’s benchmark-equivalent bond plummeted a record 26% to trade at 56 cents on the dollar, according to data compiled by Bloomberg.Argentina, whose economy is the third largest in Latin America, was already reeling from recession and inflation as high as 57.3% in May. The fear among investors now is the return to power of the Peronist party that traditionally stiffed creditors, defaulted on the nation’s bonds and rigged economic data so much that lenders had no incentive for a rescue.Amid the financial carnage, however, are two companies based in Argentina that highlight the country’s potential and showcase possible building blocks for its recovery. They are MercadoLibre Inc., Latin America’s largest online marketplace and biggest provider of online payment and digital financial services, and Globant SA, a software developer and technology services provider. Both are listed in the U.S., but if they were listed in their home country they would be 1.5 times the value of the local stock market, according to data compiled by Bloomberg. MercadoLibre and Globant increased their worldwide workforces 30% and 31%, respectively, to 7,239 and 8,384 in 2018 when most of the nation’s employers were either letting people go or not hiring during the recession.MercadoLibre is the most valuable publicly traded company based in Argentina, with a market value of $30 billion and revenue last year of $1.4 billion. Chief Executive Officer Marcos Eduardo Galperin, who is 47, started the company in his Buenos Aires garage in 1999 after studying at Stanford University. When he was a student, he successfully pitched the idea for the company to an investor while he was driving him to the airport. The company he has built now has operations in 18 countries and is referred to frequently as the Amazon.com of Latin America, with a healthy dose of PayPal thrown in because of its successful payments system.MercadoLibre, which went public in 2007, has gained 442% during the past five years and is still delivering a 109% total return this year. Its revenue is expected to increase 53% this year and 39% in 2020, according to analysts surveyed by Bloomberg. And while its 48% gross margin is down from previous years, it has been investing heavily in its businesses.Even with that success, Galperin sees a lot more room for growth. “Latin America has 600 million people and we have roughly 50 million people using our platform, up from 4 million” when the company went public, he said during an interview earlier this month at his Buenos Aires headquarters. MercadoLibre “can grow another 10 times from 50 million to 500 million” because “the number of transactions that are done per user in Latin America is still a 10th of what is happening in China.” The company derives only 21% of its revenue inside Argentina, so there’s plenty of room for expansion there.Martin Migoya, the 51-year-old chairman, CEO and co-founder of Globant, shared Galperin’s views about growth opportunities, calling the digital space “the largest single opportunity in the planet today.” His company, which was started in 2003, develops software and services for an array of mobile, social media, cloud-computing, gaming and big-data purposes, including artificial intelligence and machine learning. Its clients, 90% of which are in the U.S., have included such prominent companies as Google, Electronic Arts and Walt Disney.During an interview earlier this month at his Buenos Aires headquarters, Migoya said Globant, which generates only 5% of its sales in Argentina, is especially prepared to benefit from “a $5 trillion market in the next five years” made up of “digital transformation and cognitive transformation, which means applying artificial intelligence to pretty much everything.”Globant, which has a market value of $3.3 billion and generated $522 million in revenue last year, has gained 621% over the past five years and is returning 60% this year. Its sales are expected to increase 24% in 2019 and 21% next year, according to analysts surveyed by Bloomberg.The performances of MercadoLibre and Globant haven’t gone unnoticed. Toronto-based Dynamic Power Global Growth Fund, managed by Noah Blackstein, produced the largest total returns during the past 10, five and one years among more than 1,000 global mutual funds, according to data compiled by Bloomberg. MercadoLibre is the largest holding, accounting for more than 7% of the fund, according to the most recent filing. Globant makes up 5%.Blackstein looks for companies, not countries, when he invests. “My focus is finding the biggest opportunities for growth wherever they lie in the world, be they in technology, health care and retail,” he said in a July interview.By his measure, Argentina has some of the brightest prospects. As the country descends once again into political and economic instability, MercadoLibre and Globant can remind citizens and investors alike that a downward spiral doesn’t have to be the status quo.\--With assistance from Shin Pei.To contact the author of this story: Matthew A. Winkler at mwinkler@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Matthew A. Winkler is a Bloomberg Opinion columnist. He is the editor-in-chief emeritus of Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- GuruFocus.com
Biglari Capital Corp. Buys Electronic Arts Inc, Semgroup Corp, Sells Delek Logistics Partners ...
San Antonio, TX, based Investment company Biglari Capital Corp. (Current Portfolio) buys Electronic Arts Inc, Semgroup Corp, sells Delek Logistics Partners LP, Investors Title Co during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Biglari Capital Corp.. Continue reading...
- Investopedia
How Does Fortnite Make Money: Online Gaming, eSports
Fortnite is the most popular battle royale game worldwide, and generates huge revenues even though it is offered for free by developer, Epic Games.
- Simply Wall St.
Electronic Arts Inc. (NASDAQ:EA): Commentary On Fundamentals
I've been keeping an eye on Electronic Arts Inc. (NASDAQ:EA) because I'm attracted to its fundamentals. Looking at the...
- Zacks
Electronic Arts Boosts Gaming Lineup With Need for Speed Heat
Electronic Arts (EA) is expected to benefit from portfolio strength, with the upcoming launch of Need for Speed Heat, despite intensifying competition.
- InvestorPlace
Analysts Are Bullish on Electronic Arts Stock for Very Good Reasons
It's hard to believe that Electronic Arts (NASDAQ:EA) was trading for less than a dollar when I was in high school (yes, I'm an old man) and as low as $12 and change in 2012. Today, the company is synonymous with cutting-edge gaming and analyst consensus on Electronic Arts is optimistic, but should investors follow the analyst community's lead?Source: Shutterstock I don't make a habit of blindly following analyst recommendations, but in the case of Electronic Arts stock I would tend to concur with their bullish sentiment. Sometimes, it seems, the analysts actually get it right. This, I believe, is one of those occasions. EA Stock Is a "Market Darling"I'm not suggesting that you should allow positive market sentiment to sway your investing decisions, but it can't be denied that Electronic Arts stock is feeling the love (among analysts, at least) in 2019. Perhaps the most prominent seal of approval was recently bestowed by Piper Jaffray, which published a healthy $122 price objective in EA stock and maintained their buy rating.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA number of other high-profile analysts have expressed their optimism for the company, including:UBS Group, which initiated a buy rating on Electronic Arts stock and increased their price target to $120 from $115; BMO Capital Markets, which raised its price target on EA shares from $116 to $130 while reiterating their outperform rating; Credit Suisse, which raised its price objective to $115 from $110 and set an outperform rating for the company; and Oppenheimer, which also published an outperform rating for EA stock while increasing its price objective substantially to $110 from just $88. * 10 Cheap Dividend Stocks to Load Up On Meanwhile, a number of institutional investors have raised their stakes in Electronic Arts stock; Icon Wealth Partners, Valeo Financial Advisors, North Star Investment Management Corp., Ropes Wealth Advisors, and Berman Capital Advisors are just a handful of the corporate holders of EA shares who have increased their positions.Indeed, hedge funds and other institutional investors currently account for 94.13% of EA stock ownership. Plenty of Accolades, but Are They Justified?Hedge-fund ownership is indubitably a good sign. To be frank, I'd rather swim with the whales than with the retail minnows any day. Praise from analysts is also a nice benefit, but smart investors don't just want to know what they're buying; they want to know why analysts are so optimistic about EA stock and the gaming sector in general.Michael Olson, an analyst from research firm Piper Jaffray, has a succinct answer to this query:We see a less crowded holiday video game title slate vs. 2018. There are actually more titles launching in holiday 2019, but fewer large titles, suggesting gamer wallet share will be more concentrated.Olsen then specified Electronic Arts as a likely beneficiary of this market concentration. He also pointed out that the company plans to release the latest installment of a highly establish franchise, Star Wars Jedi: Fallen Order, on the 15th of November.This impact of this upcoming video-game release must not be underestimated. Piper Jaffray conducted a poll of more than 500 video-gamers and asked them which games are "top-of-mind" as the 2019 holiday season approaches, and Star Wars Jedi: Fallen Order came in second place. (Call of Duty: Modern Warfare came in first place, in case you're wondering.)I'm old enough to remember when Star Wars was played for the first time in movie theaters. If I know one thing for certain, it's that anything bearing the Star Wars logo is bound to be a bestseller. Just for that reason alone, whether you're personally into Star Wars or not, I firmly believe that a bet against Electronic Arts stock is a form of self-destruction. The Takeaway on Electronic Arts StockI'm not interested in watching you harm yourself, so I'm going to take sides with with Piper Jaffray, Credit Suisse, and Luke Skywalker: let The Force be with you, and power up your portfolio with Electronic Arts shares.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Analysts Are Bullish on Electronic Arts Stock for Very Good Reasons appeared first on InvestorPlace.
- Barrons.com
2 Gaming Stocks to Buy Ahead of the Holiday Season, According to an Analyst
Piper Jaffray is telling investors that Take-Two Interactive and Electronic Arts shares may benefit the most the rest of this year, with fewer big videogame releases expected this holiday season.
- American City Business Journals
Silicon Valley stocks flash red as Dow posts worst day of 2019
Shares of Silicon Valley's biggest companies fell sharply on Wednesday as the Dow Jones Industrial Average closed out its worst day yet of 2019.
- Business Wire
Need for Speed Heat Arrives on November 8th, Burning All Limits
Deep Customization, Authentic Urban Car Culture, an Open World, and an Immersive Narrative All Fuel the New Need for Speed Game
- American City Business Journals
Creative Village developer would 'love' to attract this HQ
Executives involved with downtown Orlando’s $1.5 billion Creative Village project —home to the new shared campus for the University of Central Florida and Valencia College — continue to search for companies to move into the soon-to-open development. “We’d love to have them as a tenant in Creative Village — and they know that,” said Craig Ustler, president of Orlando-based Ustler Development Inc., whose related entity Creative Village Development LLC is the master developer of Creative Village.
- InvestorPlace
Esports and Lucrative Licenses Might Save Electronic Arts Stock
Judging from the stats, video-gaming giant Electronic Arts (NASDAQ:EA) is enjoying a solid year. So far in 2019, EA stock is up nearly 18%. However, that figure hides the fact that for the most part, shares have traded in a frustratingly horizontal pattern.Source: Shutterstock Even more problematic, Electronic Arts stock recently experienced some worrying turbulence. Part of that is related to weakness in the gaming industry. Last week, rival Activision Blizzard (NASDAQ:ATVI) released its results for the second quarter. Unfortunately, the downbeat report has poor implications for competitors in the field.Specifically, Wall Street took a dim view of Activision ringing up only $1.1 billion in revenue. In the year-ago quarter, the company produced $1.7 billion in top-line sales thanks to hits from its leading franchises like Destiny and World of Warcraft. With the deflated environment, analysts had measured expectations. Still, a 35% year-over-year loss was not on anyone's radar.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks Under $7 to Invest in Now That bode very poorly for EA stock. Prior to the recent escalation of the U.S.-China trade war, EA was targeting expansion into China. They already had a lucrative partnership with Chinese internet firm Tencent (OTCMKTS:TCEHY) on their free-to-play hit Apex Legends. With experts forecasting China's gaming market to grow to over 700 million people, the country represents a must-hit target for Electronic Arts stock.Back then, the geopolitical environment was a massive headwind. Now, the situation almost appears impossible to break through. Rising rhetoric from both sides makes a trade deal unlikely in the nearer term, which stymies EA stock.Further, the weakening international currencies that negatively impacted ATVI will also hurt Electronic Arts stock. EA Stock Levers Two Big Trump CardsDespite my bullishness toward Electronic Arts stock, I must concede that recent developments make this an ugly play. Reasonably, most investors should downgrade EA as a speculative trade.However, if you're tolerant to risk, EA stock enjoys two trump cards that work synergistically with each other: the esports movement and professional-sports licenses.First, let's talk about esports. This term really represents gaming's evolution. Initially, video games started out as solitary activities. But with advancing technologies, gamers were able to create an ecosystem for their shared passion. Eventually, this ecosystem transitioned into a bona fide economy.For the first time this year, the global esports market will exceed revenues of $1 billion. In 2022, that figure will likely rise to nearly $1.8 billion. Invariably, EA stock will benefit because the underlying company owns some of the most popular gaming brands and franchises.This segues into my second point about pro-sports licenses. In many ways, Electronic Arts has a legal monopoly because it owns the exclusive and lucrative NFL license. Put another way, if you want to run a pro-football based esports tournament, guess what? You must play Madden, and that means ringing the cash register for Electronic Arts stock.As an aside, this is one of the reasons why many folks hate EA. Every year, they can forward modest improvements in game play, but demand a premium for an essentially rehashed product. But the important point here is, who's going to stop them?Additionally, Electronic Arts owns the license for FIFA, which is soccer's governing body. Since soccer is the world's most popular sport, an authentic esports soccer tournament will have to go through the gaming giant. Naturally, this is a huge boost for EA stock. Don't Forget Other Players!In analyzing the global video game market, it's easy to get tunnel vision on China. Of course, they have a population that's four times that of the U.S. Furthermore, their love for digital technologies is patently obvious.However, the Chinese are also unreliable business partners when it involves the broader entertainment industry. For instance, China is ground zero for content piracy. Thus, attaining revenue from them is always a tough challenge for content creators.When considering EA stock, I also wouldn't ignore other viable markets. For instance, western European markets combined offer robust revenue potential. Furthermore, India is transitioning into a billion-dollar gaming industry in its own right. Though the sector is incredibly challenged right now, there are still opportunities.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post Esports and Lucrative Licenses Might Save Electronic Arts Stock appeared first on InvestorPlace.
- Business Wire
EA SPORTS Madden NFL 20 Scores Early With Biggest Ever Digital Launch in Its First Week on Sale
EA SPORTS Madden NFL 20 is taking the sports world by storm, turning players into stars with some long-awaited football action. The new mode shows 80% growth over last year’s Longshot 2, demonstrating just how eager Madden NFL 20 players are to put themselves in the game and become stars. Fans couldn’t wait to get their hands on the game, as Madden NFL 20 had the highest final week of pre-orders in franchise history.
- InvestorPlace
3 Video Game Stocks to Buy
Does this week's exaggerated fearful and cheerful trading conditions make you wonder if the market is simply one big game to be played? That may be up for debate. But video game stocks Electronic Arts (NASDAQ:EA), Zynga (NASDAQ:ZNGA) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) are offering solid evidence for bulls to play the game in today's unhinged market environment. Let me explain.Amid fearful headlines of trade tariffs, currency manipulation accusations, and quick fixes, the net score for bulls and bears in the S&P 500 this week is shaping up as a draw. But that's not the case for video game stocks EA, ZNGA, and GOOGL. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Following recent earnings reports, Electronic Arts, Zynga, and Alphabet are clear winners for investors to buy. The good news is due to all the day-to-day twists and turns within the broader market. These video game stocks look ready for investors to play today.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Video Game Stocks to Buy: Electronic Arts (EA) Electronic Arts is the first of our three video game stocks to buy. EA stock is a straight-up industry giant with hugely popular franchises such as The Sims and Star Wars, has lucrative sport licensing deals with FIFA and the NFL, and is a powerhouse within the growing world of e-sports.Technically, right now is a great spot for bullish investors to begin playing a long position in EA stock. Following the company's recent earnings beat and bullish reaction, an out-of-favor, but far from out EA stock is looking destined for a big comeback on the price chart.After holding a key band of longer-term support last December, shares rebounded quickly only to fall back into a downtrend. But with EA stock successfully testing the 62% retracement level this past month and shares now sporting a bullish oversold stochastics crossover, conditions are ripe to play Electronic Arts long today.Buy EA stock today on sympathy weakness from peer Activision Blizzard (NASDAQ:ATVI). ATVI stock announced an earnings beat last night, but a modestly disappointing outlook got the better of investors.For targets on the price chart, I'd suggest using EA stock's 2019 high near $110 for partial profit-taking opportunities. To protect the position from any bearish repeats, a blended stop-loss below $88.50 to minimize casualties off and on the price chart makes sense. Zynga (ZNGA)Zynga is the next of our video gaming stocks to buy. The company has successfully pivoted from offering browser and PC-focused games into a much more defensible mobile-first platform. The transition has boosted sales growth, earnings, and the company's operating cash flow.Last week's better-than-expected Q2 confessional is the most recent evidence of ZNGA's friendly business and price trends that are building favorably for bullish investors.Regarding ZNGA stock's price chart, the report was ultimately met with some profit-taking after narrowly making new relative highs. More importantly, with a test and hold of Zynga's former five-year high and prior trend resistance in place, it's time to play this video gaming stock long. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The strategy here is simple. With ZNGA stock forming a bullish hammer pattern on the weekly price chart, wait for price confirmation next week to go long shares. Respect the candlestick low to limit exposure and look to take partial profits in-between $7.00 - $7.50 in the weeks ahead. Google (GOOGL) I'll give InvestorPlace's Josh Enomoto credit for turning my attention to GOOGL stock as the last of our video game stocks to buy. Alphabet is an unusual choice when one thinks about the gaming arena. But there's no denying the company's YouTube business is a hugely popular platform for watching top gamers exploits and tutorials on how to better your own play. It's a winning combination for profits.Following a recent earnings beat and out-of-this world reaction from Wall Street, it's game-on in GOOGL stock.Technically, the earnings reaction toppled a very bearish-looking environment. The gain of nearly 10% put to rest the possibility of a flag pattern and reinstates a more bullish outlook for this video game stock. Currently, with shares pulling back in a weekly hammer pattern that's testing the 50% retracement level from GOOGL's June low to July's earnings reaction high, Alphabet is setting up nicely for a purchase.My recommendation in GOOGL stock is to buy shares on a move through $1207. This entry confirms the bullish hammer pattern, as well as puts shares back above the early 2018 high of $1198 and the psychological $1200 barrier. I'd advise taking partial profits on a challenge of $1300 and if required, abort the long if the hammer fails to hold.Investment accounts under Christopher Tyler's management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post 3 Video Game Stocks to Buy appeared first on InvestorPlace.
- American City Business Journals
Dyer: Here's when 'most important' part of $1.5B Creative Village may be announced
There's already hundreds of millions of dollars in development underway in the 68-acre campus, but this critical component of the mixed-use project hasn't been disclosed just yet.
- InvestorPlace
10 Stocks to Buy on the Trade War Dip
Welcome back, volatility. From the beginning of June to the end of July, the S&P 500 climbed to all-time highs. It did so without ever retreating more than 2%. Now stocks have dropped more than 5% in just a few trading days. Why? The market received bad news in back-to-back days with regards to the only two things investors care about.Source: Shutterstock First, the Fed "only" cut rates by 25 basis points. They also signaled a more hawkish-than-expected tone regarding future rate cuts. Second, U.S. President Donald Trump upped the trade war ante the very next day. He implemented a 10% tariff on $300 billion worth of Chinese goods that, up until early August, had simply been talk.I get why markets are plunging in response to these two downward catalysts. I also think that stocks will bounce back soon. Trump wants lower rates. The easiest way for him to force the Fed to cut rates is to up the trade war. So he did just that. Now, the Fed is going to cut rates. That will normalize the yield curve by dragging down the short end.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, the 10-Year Treasury yield will remain below 2% because of muted inflation. That's ideal for the stock market since it supports higher equity valuations. Further, once rates get cut, it's very likely that we get some good news on the trade war front (both because Trump will have what he wanted in lower rates and because this trade war follows a rather predictable cycle). * 10 Generation Z Stocks to Buy Long Thus, today we have a sharply inverted yield curve with the threat of sizable tariffs on the horizon. By the end of 2019, though, we will most likely have a normalized yield curve with tariff threats reduced. The 10-Year Treasury yield will also likely be below 2%. That's a recipe for materially higher stock prices.Consequently, I think this late summer dip in stocks is a buying opportunity into the end of the year. Which stocks am I buying in particular? Here's a list of 10 stocks I think look good amid recent trade war weakness. Stocks to Buy on the Trade War Dip: Adobe (ADBE)% off 2019 Highs: 9%Trade Exposure: Visual cloud giant Adobe (NASDAQ:ADBE) doesn't have much trade war exposure. There is the risk that escalating trade tensions continue to drag on global economic growth, which may weigh on enterprise IT spend and could eat into Adobe's growth trajectory. But, that is about as limited trade war exposure as you will find in the market.Secular Growth Drivers: Adobe is supported by multiple secular growth drivers which should withstand trade war tensions. The first of these secular drivers is the enterprise pivot from on-premise to cloud solutions, which remains only about 20% complete. Due to the cost-saving advantages of cloud over on-premise, this should withstand the rising cost aspect of tariffs. The second secular driver is the global consumer pivot towards visual consumption. The world is becoming increasingly visual every day, and as it does, more enterprises are adopting Adobe's visual cloud solutions to create visually compelling content that resonates with consumers. This pivot will not be disrupted significantly by trade war tensions.Near Term Catalysts: Adobe just reported yet another double-beat earnings report which comprised robust revenue and profit growth. Thus, the growth trajectory here remains favorable. As it does, strong earnings reports will converge on a depressed stock, and spark a nice recovery rally in ADBE stock. Adobe is a stock to buy. Facebook (FB)% off 2019 Highs: 11%Trade Exposure: Digital advertising giant Facebook (NASDAQ:FB) has some trade war exposure as higher costs could pressure U.S. companies. Tariffs mean higher input costs for a lot of small- to medium-sized U.S. retailers and merchants. Many of those companies will not be able to pass on those higher costs to consumers. As such, they will have to absorb higher input costs. That will pressure margins. In response, some of those companies may reduce their ad budgets. If so, that would mean less ad revenue from these companies into Facebook.Secular Growth Drivers: It's unlikely Facebook gets hit much by this reduced ad spend. Instead, if U.S. companies do reduce their ad spend in response to higher input costs, they will likely reduce spend on smaller ad platforms, like Yelp (NYSE:YELP). They almost certainly won't cut Facebook or Instagram ad spend. And that speaks to this company's secular advantage -- it's unparalleled size and reach among the global consumer. So long as this advantage remains in play, and so long as ad dollars continue to shift into the digital channel -- which they should given increases in digital content consumption -- Facebook's secular growth trajectory will remain robust, regardless of trade war noise. * 10 Stocks to Buy From This Superstar Fund Near Term Catalysts: Facebook just started pushing forward on the e-commerce front. As relatively nascent e-commerce businesses like Instagram Shopping gain traction over the next several quarters, investors will start to salivate over the long-term potential of the commerce growth vertical. This will lead to strong investor demand for shares of FB, which should ultimately push Facebook stock higher for the foreseeable future. Electronic Arts (EA)Source: Shutterstock % off 2019 Highs: 17%Trade Exposure: Video game publisher Electronic Arts (NASDAQ:EA) has very limited exposure to the trade war since the video game industry has been largely exempt from tariffs, and projects to remain so for the foreseeable future.Secular Growth Drivers: There are three big secular growth drivers supporting EA stock, all three of which will withstand and outlast trade war noise. First, the sleepy video game industry is on the verge of a huge leap forward with the 2020 release of next-gen consoles -- the first in eight years -- and the 2019/2020 release of cloud gaming platforms. Second, EA has successfully jumped into the "free-to-play" arena with Apex Legends and is set to win big as free-to-play games gain traction over the next few years. Third, EA's portfolio line-up, including Madden and NBA Live, is optimally positioned for eSports. As eSports continue to grow over the next few years, EA should be at the center of all that growth.Near Term Catalysts: Over the next few quarters, it's all about cloud gaming, new consoles, and Apex Legends for EA stock. The release of cloud gaming platforms in late 2019 should breath life back into the stale video game industry. New console releases in 2020 should build on that momentum, and supercharge growth across the whole industry. Meanwhile, EA's second iteration of Apex Legends has been a big success so far. As such, this company's numbers will significantly improve over the next few quarters, and as they do, EA stock will bounce back, making this a stock to buy. Square (SQ)Source: Shutterstock % off 2019 Highs: 22%Trade Exposure: Payments processor Square (NYSE:SQ) has some exposure to the trade war, but it is largely limited to increased input costs for its hardware devices, which represent an increasingly small and unimportant part of Square's overall revenue and profit pie.Secular Growth Drivers: The secular growth driver supporting SQ stock is the global pivot from cash to cash-less payments, which has been happening rapidly and will continue to over the next several years, regardless of how the trade war plays out. The bigger the trade war gets, the less consumers spend, and the slower Square grows. But, the cash-less movement will remain robust, so regardless of how broader consumption trends play out, Square's secular growth driver will remain strong. * 8 of the Most Shorted Stocks in the Markets Right Now Near Term Catalysts: SQ stock is down recently because the company gave a weak guide shortly before the market started to tank. The two compounded on each other, and Square stock now finds itself in bear market territory. But, management is notorious for "sandbagging" guidance. Thus, Q3 numbers will likely come in much better than expected. If that happens, you will have a double-beat report converging on a depressed stock, which should result in a big rally for SQ stock the next time earnings roll around. Lululemon (LULU)% off 2019 Highs: 10%Trade Exposure: Of all the stocks to buy on this list, Lululemon (NASDAQ:LULU) arguably has the most trade war exposure, since nearly 60% of the company's products are manufactured in South East Asia, with 12% manufactured in China. Thus, bigger tariffs mean higher costs, and presumably lower margins.Secular Growth Drivers: There are two secular drivers supporting LULU stock. One, athletic apparel adoption rates are soaring across the world, since consumers are increasingly obsessed with looking good, being healthy, and leading active lifestyles. Two, Lululemon dominates the high-quality niche of this secular growth athletic apparel market, and as such, has exceptionally high consumer demand and brand equity. This will enable the company to weather the trade war by passing higher costs onto consumers without adversely impacting demand. Revenues and margins should remain on a steady uptrend for the next several years, regardless of trade war noise.Near Term Catalysts: The market is presently underestimating the secular strength of the athletic apparel market, and Lululemon's ability to pass higher costs onto consumers without adversely impacting demand. As such, while investors are expecting next quarter's profit numbers to come in lighter than expected, they won't. Instead, it will be yet another double beat quarter, the likes of which will converge on a relatively depressed LULU stock to spark a big rally. Qualcomm (QCOM)% off 2019 Highs: 23%Trade Exposure: Chip giant Qualcomm (NASDAQ:QCOM) has plenty of trade war exposure, since at its core, this is a smartphone company, and the core of the smartphone growth narrative is the rapid urbanization of developing economies, the biggest of whom is China. Thus, rising trade tensions could impact global smartphone demand, which could have an adverse impact on Qualcomm's numbers.Secular Growth Drivers: The bigger story -- and more important growth driver -- at Qualcomm is the mainstream and widespread roll-out of 5G smartphones in 2020. Much like next-gen console releases in 2020 will breathe life back into what has become a stale video game industry, 5G smartphone releases in 2020 will similarly breathe life back into what has become a stale and tired global smartphone industry. This reinvigorated growth will power strong results for Qualcomm over the next several years, which should keep QCOM stock on a long term winning trajectory. * 7 Stocks to Buy With Over 20% Upside From Current Levels Near Term Catalysts: See above. It's all about 5G, and 5G smartphones will start to roll out in 2020. Ahead of that big catalyst, you will likely see investors buy into QCOM stock, especially if trade tensions cool off. Alphabet (GOOG)% off 2019 Highs: 11%Trade Exposure: Digital ad giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), much like Facebook, has exposure to the trade war through reduced ad spend as tariffs force U.S. companies to potentially re-think ad budgets.Secular Growth Drivers: The secular growth drivers here are two-fold, and are the same as Facebook's secular growth drivers. One, consumers are only spending more time in the digital channel, so ad dollars will continue to pivot in bulk into that space. Two, Alphabet is the biggest player in the digital ad space with the most reach, so even if U.S. companies do start to re-think their ad budgets, they likely won't reduce spend on Alphabet's platforms. On top of all that, Alphabet's cloud business is supported by secular cloud adoption tailwinds which won't be impacted in any big way by trade issues.Near Term Catalysts: Alphabet just reported a really strong second quarter earnings report wherein revenue and profit growth accelerated sequentially, powered by increasing cloud momentum and improving margin performance. GOOG stock popped big in response to that report. It has since given up all of those gains because of macro headwinds. These macro headwinds won't stick around. Once they disappear, investors will look back at the Q2 earnings report and say, "hey, that was a pretty good print." They will consequently buy back in, and GOOG stock will turn back higher. Twilio (TWLO)Source: Shutterstock % off 2019 Highs: 18%Trade Exposure: Cloud communications company Twilio (NASDAQ:TWLO) has essentially zero direct trade war exposure, although it could be negatively impacted by a global economic slowdown as a result of escalating trade tensions.Secular Growth Drivers: The secular growth narrative at Twilio is all about cloud communications. Real-time communication is becoming an increasingly important part of the consumer experience. That is, in order to enhance their experiences, enterprises are increasingly employing real time communication. Twilio enables this real time communication. As real time communication becomes the norm in consumer experiences over the next several years, every company will adopt these services. Many of them will adopt Twilio, since they are the leader in the market. Nothing about this secular growth narrative is adversely impacted in the long run by trade tensions. * 7 Stocks to Sell This Summer Earnings Season Near Term Catalysts: Twilio just reported a double beat-and-raise earnings report which topped expectations everywhere. Q2 revenues and profits beat estimates. The Q3 revenue and profit guides were above-consensus, too. The FY19 revenue and profit guides were lifted to above-consensus marks. Despite this strength, TWLO stock is down big since that report. Why? Macro noise. This macro noise will fade. When it does, the company's strong internals will move back into spotlight. That transition should propel a nice rebound in TWLO stock over the next few months, especially if rates remain depressed (and if the Fed cuts rates further). Canopy Growth (CGC)Source: Shutterstock % off 2019 Highs: 40%Trade Exposure: Cannabis giant Canopy Growth (NYSE:CGC) has limited exposure to the U.S.-China trade war. However, the worry here is that tariffs are the new norm everywhere. If so, Canadian-based Canopy Growth could have a tough time expanding globally.Secular Growth Drivers: The secular growth narrative is that Canopy is the unchallenged leader in a cannabis market that while small today, projects to be huge at scale, given underlying consumption trends which show marijuana's popularity is huge and growing. Trade disputes impact this narrative to the extent that they might stifle Canopy's international growth prospects. But, it seems like a leap to assume that tariffs are the new global norm. Anything short of that, it's tough to see Canopy's secular growth narrative being derailed by trade.Near Term Catalysts: Canopy's numbers last quarter weren't good. In fact, they were bad enough that the CEO got fired. Next quarter's numbers should be a lot better. Canadian cannabis volume trends have improved significantly over the past few months. Peer Aphria (NYSE:APHA) also reported strong numbers which underscore that things are getting better. Further, cannabis 2.0 products like vapes and edibles are set to launch in Canada later this year. The launch of these products should provide meaningful revenue and margin tailwinds for Canopy. Net net, the numbers over the next few quarters should improve dramatically, and spark a big rebound in CGC stock. Alibaba (BABA)% off 2019 Highs: 22%Trade Exposure: Chinese commerce giant Alibaba (NYSE:BABA) has a ton of trade war risk. Most importantly, Alibaba goes as the China consumer economy goes. That consumer economy has weakened as trade tensions have risen. If trade tensions keep going up, China's consumer economy could keep slowing. If so, Alibaba's once super robust growth trajectory will continue to flatten out.Secular Growth Drivers: The long term fundamentals underlying BABA stock are highly favorable. What you have in China is a consumer economy with well over 1 billion consumers, less than 60% of whom are connected to the internet. In developed economies like the U.S. and Canada, the internet penetration rate is essentially north of about 90%. Thus, China has ample runway to add hundreds of millions new internet-connected consumers over the next several years. All those consumers will flow into the Alibaba ecosystem, since Alibaba is the de facto e-commerce platform in China. Against the backdrop of this secular growth narrative, current trade war noise is just a bump in the road.Near Term Catalysts: It's tough to point to a catalyst on the horizon for BABA stock. The reality is that, so long as trade tensions remain hot between the U.S. and China, BABA stock will remain weak. Thus, buying the dip here require patience. Long term, such patience will be rewarded. This stock has tremendous growth potential in a multi-year window. Alibaba just has to move past near term trade issues in order to realize that long term potential.As of this writing, Luke Lango was long ADBE, FB, EA, SQ, LULU, QCOM, GOOG, TWLO, CGC, and BABA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post 10 Stocks to Buy on the Trade War Dip appeared first on InvestorPlace.
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EA Stock Is Fairly Valued, but That Doesn’t Mean It Can’t Still Pop
Electronic Arts (NASDAQ:EA) has been holding steady. EA Stock has traded between ~$87 and ~$100/share since the spring of 2019. But with the release of earnings on July 30, shares saw a nice short-term pop. The strong performance during the last quarter pushed the price from $87.93 up to as high as $97.07/share.Source: Shutterstock Is this short-term performance indicative of a long-term rally? The company is fairly valued, but with catalysts in the pipeline that could materially improve earnings, there could be some upside. Strong Earnings Boost EA StockResults for the quarter ending June 30 beat expectations. Thanks to the performance of FIFA Ultimate Team, The Sims 4, and Star Wars: Galaxy of Heroes, total revenue moved to $1.2 billion, up from $1.137 billion in the prior year's quarter.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLooking forward to the full year, EA expects FY2020 (year ending June 30, 2020) to show revenues of ~$5.375 billion, a single-digit percentage increase from FY2019 (revenues of $5.022 billion). But these small gains in revenue understate earnings growth potential. There are several catalysts in the pipeline that could boost earnings over the next few years.The transition from physical to digital sales of video games continues to improve operating margins. Operating income for the quarter ended June 30 zoomed to $415 million, up 38% year-over-year.There also are new potential revenue streams. The launch of the EA Access service gives the company exposure to the subscription business model. By monetizing the company's existing library of titles, the company can generate new streams of revenue without increasing development costs.With $3.5 billion in cash on the balance sheet, EA has plenty of options to improve shareholder value. They could accelerate their current share buyback plan. They could also shore up their mobile business via bolt-on acquisitions of smaller video game publishers. Electronic Arts Stock Trades Similar to PeersEA trades a fair valuation relative to its publicly-traded peers. Electronic Arts stock trades at a forward GAAP Price-to-Earnings (P/E) ratio of 10.9, but this figure is skewed by a recent income tax benefit. With this in mind, it may be more appropriate to use the company's Non-GAAP forward P/E ratio of 20.2. Enterprise Value/EBITDA (EV/EBITDA) for the trailing twelve months (TTM) is 18.4.Compare this with Activision Blizzard (NASDAQ:ATVI) and Take-Two Interactive (NASDAQ:TTWO). ATVI trades at a forward P/E of 37, and an EV/EBITDA ratio of 14.4. TTWO trades at 33.7 times forward earnings, and at an EV/EBITDA ratio of 44.74.This makes the current valuation of Electronic Arts reasonable. Compared to the market, EA stock trades at an EV/EBITDA ratio in line with the valuations of S&P components in the Consumer Discretionary sector (EV/EBITDA of 15.3).EA probably deserves a higher valuation, as the company has a tremendous economic moat. Their portfolio of video game franchises allows for high operating margins. The durability of the franchises protects the company. Compare EA to the likes of media giants such as Disney (NYSE:DIS), which have been able to trade at high valuations on the merits of their intellectual property. The Bottom Line on EA StockAt the current price, Electronic Arts trades at a reasonable valuation, but the company has many core strengths.Their portfolio of sports games (FIFA, Madden) are durable franchises. They produce consistent sales thanks to annual game releases. The launch of free-to-play games such as Apex Legends helps them gain market share in the growing "battle royale" (think Fortnite) video game genre.The transition from physical to digital delivery has and will continue to improve operating margins. Add in the potential growth from the EA Access subscription service, and the company has a clear path to earnings growth and stock price appreciation.In today's market, Electronic Arts stock is fairly valued. A market-wide correction would impact the stock's performance, but at the current trading price, investors can enter the stock at a fair valuation. Electronic Arts stock may be more of a buy if the stock dips again, but with the current growth catalysts in play, the company could see a nice boost in the near-term.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Generation Z Stocks to Buy Long * 5 Growth Stocks to Buy After the Rate Cut * 5 Dependable Dividend ETFs to Invest In The post EA Stock Is Fairly Valued, but That Doesn't Mean It Can't Still Pop appeared first on InvestorPlace.
- Thomson Reuters StreetEvents
Edited Transcript of EA earnings conference call or presentation 30-Jul-19 9:00pm GMT
Q1 2020 Electronic Arts Inc Earnings Call
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