|Bid||0.00 x 900|
|Ask||0.00 x 900|
|Day's Range||93.23 - 95.28|
|52 Week Range||73.91 - 109.36|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||13.45|
|Earnings Date||Oct 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||111.48|
The case for video gaming plays like Electronic Arts (NASDAQ:EA) seems reasonably simple. Gaming demand continues to rise. The transition to digital downloads has bypassed retailers like GameStop (NYSE:GME) and Walmart (NYSE:WMT), presumably boosting margins in the process. For Electronic Arts stock, in particular, dominant sports franchises provide a stable profit baseline - and perhaps a floor to valuation.Source: Konstantin Savusia / Shutterstock.com The problem at the moment is that the case has held for a few years now. And EA stock has done nothing. In fact, it's traded down 14% over the last 29 months.In other words, that bull case doesn't look like quite enough. Electronic Arts needs to show more. The problem, less than three weeks out from fiscal second-quarter earnings, is that it's not at all clear what the company can do to surprise investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips EA Stock Falls FlatThe problem with EA isn't just a matter of the market's reaction. Operationally, EA hasn't performed well. Net bookings actually are down 4%+ over the past twelve months, according to figures from the company's fiscal Q1 release. That includes just a 5% increase in digital net bookings, the supposed growth driver. * 10 Super Boring Stocks to Buy With Super Safe Returns EA doesn't disclose non-GAAP figures, but it does seem like earnings growth is relatively minimal. Analyst consensus for EPS this year (and the Street usually uses adjusted figures) suggests a roughly 8% increase year-over-year. There's some help from share buybacks in there as well.Even at an admittedly reasonable multiple, that doesn't look quite enough. And it's with the help from Apex Legends that spiked the stock above $100 earlier this year. I thought those gains were overdone, and that appears to have been the case. Indeed, Electronic Arts stock fell almost 10% in two sessions when Season 2 of Apex began - and hasn't recovered since. Electronic Arts Stock Lacks a DriverSo what's the bull case now? The case for just buying video game stocks seems to have run its course. Indeed, rival Activision Blizzard (NASDAQ:ATVI) similarly has fallen sharply from 2018 highs, though ATVI has rallied in recent weeks.Take-Two Interactive (NASDAQ:TTWO) did almost get back to last year's levels before a recent fade, but that's kind of the point. Unlike EA and Activision Blizzard, Take-Two isn't just reliant on older franchises. Those franchises - whether it's Call of Duty or Madden - aren't driving enough growth. It's Fortnite, and even social gaming, that look more attractive at the moment.And so the key question for Electronic Arts is: where is its new franchise? Where is its new growth driver? The company doesn't have an answer right now, which is why EA stock has traded sideways for most of this year. The Case for EA StockTo be fair, what EA can deliver might be enough to drive some upside in Electronic Arts stock. EA is cheap, at a little over 20x fiscal 2020 consensus EPS estimates. Back out the company's cash hoard (about $14 per share)and the multiple drops to a reasonable 17x.That's a multiple that likely only prices in single-digit growth - and that's what Electronic Arts can deliver. So an investor can perhaps afford to be patient here, hoping for an earnings beat later this month, an acceleration in Apex Legends, or new momentum behind one of the legacy sports franchises.At the same time, however, that's not a very compelling bull case. And it leaves the same problem: something here needs to change. The old bull case isn't working. Electronic Arts needs a new one - but it's not yet clear what it can be.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post There Doesn't Appear to Be a Clear Path Forward for EA Stock appeared first on InvestorPlace.
The local head of EA talked about what the move may mean for the largest video game studio in Florida.
Here's what's at the top of Electronic Arts' top local exec's wish list ahead of its move to downtown Orlando.
Does Electronic Arts Inc. (NASDAQ:EA) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend […]
Today we will run through one way of estimating the intrinsic value of Electronic Arts Inc. (NASDAQ:EA) by projecting...
Electronic Arts Inc. will release its financial results for the second fiscal quarter, which ended September 30, 2019, after the close of market on Tuesday, October 29, 2019.
Seton Hall Sports Poll finds that 60% of people say student athletes should be allowed to profit from the use of their name, likeness, or image.
The Orlando City Council has approved incentives for Electronic Arts' move to downtown Orlando from Maitland. During its Oct. 7 meeting, the council approved $9 million in economic incentives to bring Electronic Arts (Nasdaq:EA) — whose Maitland-based EA Tiburon Inc. is the largest video game studio in Florida — into the $1.5 billion Creative Village mixed-use development, which includes UCF Downtown, the shared campus between the University of Central Florida and Valencia College. As part of the deal, EA would bring roughly 700 high-wage jobs to Creative Village, with a potential for 1,000 total jobs or more in the area by 2025.
Millions of Players from More than 60 Nations Expected to Compete; More than a Projected 20 Official League Partners to Host Tournaments; Watch Today’s EA SPORTS FIFA 20 Global Ser
Electronic Arts (NASDAQ:EA) is having a decent year on the markets with EA stock up 19.44% year-to-date, including dividends, through Oct. 3. That's 257 basis points higher than the SPDR S&P 500 ETF (NYSEARCA:SPY) and 645 basis points higher than rival Activision Blizzard (NASDAQ:ATVI).Source: Konstantin Savusia / Shutterstock.com While EA stock is up YTD on ATVI, the question is whether it can maintain this momentum all the way to $175 -- 87% higher than the current price of Electronic Arts. Or, will ATVI jump 87% before EA does and hit $100?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why I'm asking These Questions?Over the past couple of years, I've followed the stock performance of Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA).For fun, I suggested in 2017, that Nvidia would hit $200 before AMD hit $25. It did, so I upped the ante, suggesting it would hit $350 before AMD hit $25. It didn't. AMD hit $25 in August 2018, while Nvidia struggled to get to $300. "[I'm] confident that Nvidia's profitability would win the day," I stated in September 2018. "I upped the ante predicting NVDA stock would hit $500 by the end of 2020, before AMD would hit $45."How am I doing? * 8 Stocks to Buy Offering Both Dividends and Growth Advanced Micro Devices stock is up 11% since September 4, 2018, the date of my price prediction, while Nvidia is down 37% over the same 13 months. Lisa Su has done an excellent job at AMD over the past five years. It's a big reason why AMD has been the better performer and could remain so in the future. So, now that you know the "why" behind the headline of this article, let's dig into the heart of the matter: Which stock will rise 87% first? EA Stock Will Hit $175 By What Date?Interestingly, both stocks have similar performance over the past five -- and 10-year periods -- EA's average total return over five and ten years is 19.7%, 80 basis points higher than ATVI -- which means it isn't going to be easy picking a winner. One of the things that EA has going for it, as my InvestorPlace colleague Josh Enomoto recently alluded to, is that it has finally figured out how to extract real value from the Star Wars franchise, which should generate significant cash flow for the company for years to come. How so?In response to poor showings with "Star Wars: Battlefront" and "Star Wars: Battlefront II," which failed to wow gamers, it released "Star Wars: Fallen Order," which appears to be a product that both gamers and sci-fi lovers appreciate and can enjoy playing. Factor in the fact that the next installment of Star Wars hits theaters Dec. 20, which should ramp up excitement for the game itself, generating significant revenues for Electronic Arts, and further gains for shareholders. When does EA stock get to $175?Well, it has never been higher than $151.26 (July 2018), so it's likely going to take at least 18-24 months in my estimation; possibly longer if a recession hits. ATVI Will Hit $100 Sooner or Later?ATVI stock hit an all-time high of $84.68 in October 2018. Since then it has lost 36% of its value.That's the bad news.The good news is that it's making big inroads in the esports market with its Overwatch League, whose sponsors include Intel (NASDAQ:INTC) and Coca-Cola (NYSE:KO). And team-based esports have become so big that the Philadelphia Fusion Overwatch team is building an esports arena -- it will cost $50 million to build, will seat 3,500 people and will even have a practice facility -- in between the stadiums where the NHL's Flyers and NFL's Eagles play.God help us if the practice facility includes a weight room. But I digress. Audiences are getting bigger by the day with growth happening in many markets, not just in the U.S."According to Esports Strategy and Analytics Lead at Activision Blizzard Kasra Jafroodi, the average minute audience (estimated audience divided by total time broadcast) for Overwatch League matches was 218,000 internationally as opposed to 95,000 in the U.S.," the Washington Post's Hawken Miller reported in late September. Some very rich people are backing the Overwatch League's 20 teams, including Kraft's, Kroenke's, Wilpons and Roberts'. Big money doesn't jump into something like this without a potential pot of gold at the end of the rainbow. Recently, I suggested that the company was doing enough to be a $60 stock in the near term, say by the end of the year. To get another $40 to $100, it's going to need a few wins beyond the Overwatch League and its mobile version of Call of Duty. * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now The VerdictI didn't expect AMD to put such a beatdown on Nvidia. Yet, it happened. And then some. From where I sit, EA and ATVI both have strengths and weaknesses, with neither standing out from the other. I expect both of them to continue to deliver similar returns over the long haul. As a result, it's possible both could hit their price targets at the same time in 18-24 months. If you're unsure about which stock to buy, you might consider The Communication Services Select Sector SPDR Fund (NYSEARCA:XLC), which has EA and ATVI at weightings of 3.7% and 4.5%, respectively. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Can Electronic Arts Stock Hit $175 Before Activision Blizzard Hits $100? appeared first on InvestorPlace.
The event is a chance for some Central Florida tech firms to recruit needed talent, while also serving as a bump for Orlando’s hospitality and tourism sectors.
Orlando Mayor Buddy Dyer's State of Downtown Address on Oct. 2 focused on a big proposed corporate relocation, as well as helping the city become a hub in the state. Among those areas, Dyer highlighted the proposed move of Redwood City, California-based video game giant Electronic Arts Inc. from Maitland to the $1.5 billion Creative Village mixed use development, which includes UCF Downtown, the shared campus between the University of Central Florida and Valencia College. The Orlando City Council on Oct. 7 will consider roughly $9 million in economic incentives to draw Electronic Arts (Nasdaq: EA) — whose Orlando-based EA Tiburon Inc. is the largest video game studio in Florida.
Millions of dollars in city of Orlando tax incentives are currently being floated to attract EA to relocate its offices to Creative Village from Maitland, according to city documents. The Orlando City Council on Oct. 7 will consider roughly $9 million in incentives to lure Redwood City, California-based video game giant Electronic Arts Inc. — whose Orlando-based EA Tiburon Inc. is the largest video game studio in Florida — to the $1.5 billion Creative Village mixed-use project, which includes UCF Downtown, the shared campus between the University of Central Florida and Valencia College. The incentives — through the city of Orlando's community redevelopment agency, which promotes development in the urban core — essentially would reimburse EA for the funds it would pay in property taxes.
Today, Electronic Arts Inc. (EA) launched EA SPORTS™ FIFA 20 across PlayStation®4, Xbox One, and PC. Fans can experience the brand-new VOLTA FOOTBALL* mode, inspired by the small-sided form of football played in the streets, cages and futsal courts across the world. Players can also jump into FIFA Ultimate Team™ to play new social experiences such as FUT Friendlies or check out Season Objectives where they can unlock new club customization content.
Today at Oculus Connect 6, Respawn™ Entertainment, a studio of Electronic Arts Inc. (EA) and Oculus from Facebook revealed Medal of Honor™: Above and Beyond, coming next year exclusively to VR, on the Oculus Rift platform. The game, which is being built for Oculus Rift from the ground up by a team comprised of veteran developers of the series, will put players in the role of an agent in the Office of Strategic Services (OSS).