92.46 -0.52 (-0.56%)
After hours: 5:46PM EDT
|Bid||92.20 x 3200|
|Ask||92.48 x 1400|
|Day's Range||92.68 - 94.20|
|52 Week Range||73.91 - 151.26|
|Beta (3Y Monthly)||1.48|
|PE Ratio (TTM)||20.24|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Electronic Arts: What Can Investors Expect in Q4?(Continued from Prior Part)Forward PE ratioElectronic Arts (EA) has a forward PE ratio of 28.2x for 2019. The ratio might seem high given the company’s negative revenue and earnings growth this
Meeker spun the new San Francisco-based firm out of Kleiner Perkins last year as new partners Mamoon Hamid and Ilya Fushman pushed to re-orient the storied firm towards early stage investments.
Electronic Arts: What Can Investors Expect in Q4?(Continued from Prior Part)Cash and debt Electronic Arts (EA) ended the third quarter with a cash balance of $5.16 billion. The company has a debt of $994 million. Electronic Arts’ debt-to-net
Shares of Sony (NYSE:SNE) have been showing signs of life this month, after a long downtrend kept SNE under serious pressure. Is it a safe buy now and how much upside could exist?Source: Dalvenjah via FlickrNo stock is necessarily a "safe" pick, but if investors enter into a favorable risk/reward, they can enhance the odds of the latter and reduce the odds of the former.With Sony stock, the charts point to a potentially favorable entry near current levels. As for upside, the average price target from analysts sits at $66.55, more than 36% above current levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell Before They Give Back 2019 Gains SNE stock received an upgrade from Macquarie analysts on Tuesday morning. They went from neutral to outperform, although did not assign a price target. That follows Jefferies, who last week upgraded the stock to buy from hold. These analysts did include a price target, which went from $50.70 to $58. Even if Sony stock "only" rallied to this mark, it would represent more than 24% upside from current levels. Trading Sony Stock Click to EnlargeAbove is a two-year weekly chart of Sony stock. April was a big month for Sony, as the stock hammered out a bottom near $42. It took about three weeks to solidify, but once it did, the share price took off.It pushed right through $45, a key mark. More important, it broke out of its downward channel. This channel, highlighted in blue on the chart, has been pressuring Sony stock lower for six months. For SNE to break out of this channel is a critical development for bulls and could suggest more upside.With shares getting hit down toward $46.50, this could give interested bulls an entry on the long side. As long as SNE stock stays north of prior downtrend resistance, it's okay on the long side. For now, Sony stock is holding up over the 10-week moving average as well. If this moving average acts as support, that's very promising for potential upside.That said, investors have to contend with news of lower video game sales last month. That news isn't just bad for Sony, but Activision Blizzard (NASDAQ:ATVI), Electronic Arts (NASDAQ:EA) and others. The exception may be Nintendo (OTCMKTS:NTDOY), which suddenly found itself in demand when China became open to allowing the Switch in the country.More notably, Sony earnings are on April 26. Many will want to wait until after the report before entering Sony stock, and I do not blame them. Bottom Line on Sony StockWhen Sony reports its fiscal fourth-quarter results later this week, analysts will be looking for earnings of 19 cents per share on revenue of $18.79 billion. Those earnings estimates are down almost 30% from 90 days ago, when analysts were looking for 27 cents per share in earnings. In-line revenue results would result in 4.3% year-over-year growth.Overall, analysts are looking for full-year earnings of $5.86 per share on revenue of $77.58 billion. Should SNE achieve these numbers, it will represent 67% growth and 0.60% growth, respectively. However, in fiscal 2020, estimates call for earnings of "just" $3.85 per share. That puts Sony stock at about 12 times next year's earnings (the fiscal year of which will start this quarter).For short-term traders, SNE is likely too much of a mixed bag. However, for investors that like its long-term prospects, Sony stock has some attractive qualities. Consider current levels a decent entry for a partial position. Those who choose to wait can see whether nearby support is legit or if it will fail.Should Sony stock rally, I want to see how it handles $50.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post Sony Stock Easily Could Have a 36% Upside After Earnings appeared first on InvestorPlace.
Electronic Arts: What Can Investors Expect in Q4?(Continued from Prior Part)FIFA gaming franchise Electronic Arts’ (EA) stock price, like any other, depends on earnings and revenue growth. Gaming companies need to have a compelling list of
Electronic Arts: What Can Investors Expect in Q4?(Continued from Prior Part)Gross profit margin The shift to digital gaming has driven the profit margins higher for Electronic Arts (EA) and its peers over the last few years. Electronic Arts’ gross
Electronic Arts: What Can Investors Expect in Q4?(Continued from Prior Part)Electronic ArtsLast year, Electronic Arts (EA) announced that it would delay the launch of its highly anticipated Battlefield V game to improve users’ experience. The
Electronic Arts: What Can Investors Expect in Q4?Electronic Arts’ revenues Electronic Arts (EA) is scheduled to announce its fourth-quarter results on May 7—fiscal 2019 ended in March. Analysts expect the company to post revenues of $1.19
What's interesting about Zynga (NASDAQ:ZNGA) over the past few years is that everyone got the stock wrong. That's true from a broad standpoint: ZNGA stock has nearly tripled from early 2016 levels.Source: Shutterstock But it's also true looking more closely at both Zynga bulls and bears. When Zynga stock sat near $2, bulls pointed to the company's huge cash balance, which at times cleared one billion dollars; its wholly-owned headquarters in San Francisco, which ostensibly could be sold; the Empires & Allies game; and its 2014 acquisition of NaturalMotion.Bears (myself included, in the interest of full disclosure) saw Zynga Poker as doomed to follow the declines of older franchises like FarmVille and Mafia Wars, as the company adapted to declining game usage on the Facebook (NASDAQ:FB) platform.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBears obviously have been wrong on the games in particular: Zynga Poker remains the company's top game, according to the 10-K. But the bull case hasn't really played out, either. * 10 Stocks to Sell Before They Give Back 2019 Gains While ZNGA backers were looking at the asset base, the company under former Electronic Arts (NASDAQ:EA) executive Frank Gibeau has ground out an impressive, old-fashioned turnaround. Empires & Allies has been discontinued, and NaturalMotion's CSR2 has been decent but not spectacular. Cost controls, better execution, and smart capital allocation have driven earnings higher - and the Zynga stock price along with it.Now, however, the turnaround is over, as even Zynga management wrote in the company's Q4 shareholder letter. And the question becomes: what now? ZNGA Stock ValuationThe case for ZNGA stock is that valuation is reasonable and growth is on the way. Valuation is a little tricky given that Zynga generates enormous amounts of deferred revenue that wind up being excluded from its profits. The company is guiding for an increase of some $200 million in deferred revenue in 2019: cash that will be brought in from player fees, but won't be recognized as revenue until 2020 and beyond.Still, it appears that ZNGA stock is reasonably valued. Guidance suggests bookings (reported revenue plus the change in deferred revenue) should rise some 39% in 2019. Margins are going to see some pressure, owing in part to upfront investments in research and development. But excluding the deferred revenue shift, adjusted EBITDA seems like it should come in around $250 million or so in 2019.That's a roughly 15-16x EV/EBITDA multiple which is high, but not terribly so in the context of the gaming space. Next year's consensus EPS estimates of $0.26 suggest a roughly 20x multiple, backing out the company's net cash.Valuation obviously is quite different than it was a few years ago. In 2015-2016, the case for ZNGA stock was that value of the assets created a 'floor' under the stock. Now, investors are valuing the business at several billion dollars, which makes some sense. The Case for Zynga StockAfter all, Zynga now has a base on diversified, stable franchises and growth opportunities arriving in the second half. The company claims five "forever" franchises: Words with Friends, Zynga Poker, CSR2, Merge Dragons!, and Empires & Puzzles. All five have held up well for years now and guidance suggests overall bookings for the group should grow in the first half.With the turnaround complete, Zynga now is looking toward new efforts. Per the shareholder letter, new games are coming based on Game of Thrones, Harry Potter, and Star Wars. CityVille and FarmVille are getting new offerings as well.The argument from bears for some time was that eventually, the "forever" franchises would crack. Zynga still generates around 20% of revenue from casino-type games and 15% from Zynga Poker. It seemed likely that at some point users would tire of those games but that hasn't been the case. Overall slots bookings were up modestly in Q4 2018, and represented 21% of the total.That performance has been echoed elsewhere: Caesars Entertainment (NASDAQ:CZR) sold its slot business at an attractive valuation. International Game Technology (NYSE:IGT) made a nice profit on Double Down Entertainment. Scientific Games (NASDAQ:SGMS) is spinning off a piece of its social gaming business to pay down debt.Those social gaming assets (again, about 20% of bookings) clearly have value. The "forever" franchises have proven their worth. Advertising revenue is growing. And the new offerings should drive growth in the second half of 2019 into 2020. What's not to like? The Risks to Zynga StockThere is good news here. But there are worries as well. Zynga Poker is slowing down, per commentary on the Q4 call and the 10-K. Words with Friends appears to be losing users. Zynga's growth looks impressive - but a decent chunk of it has come from acquisitions, including the deal last year to buy the developer of Merge Dragons!.Overall users are relatively flat even with help from acquisitions. Zynga is doing a better job of monetizing those players, including through higher advertising sales, but getting more money from the same amount of users is a difficult long-term goal.As for the new games, the branded games will be less profitable, as Zynga will have to pay licensing fees. And the struggles of other developers like EA in doing justice to Star Wars are well-documented.The bear take here is that Zynga really hasn't been that good at developing games. It launched Zynga Poker a decade ago; the other four "forever franchises" all were acquired. Empires & Allies was a flop. (Empires & Puzzles was picked up through the acquisition of another developer, Small Giant Games.) In between, other than jumping on the social slots trend, Zynga hasn't done much in-house. Now, it has to. Will it do it well? The Bottom Line on ZNGA StockThe other concern is on the valuation front. ZNGA stock is reasonably cheap if an investor excludes share-based compensation. That figure remains huge: some $68 million in 2018. That's over 20% of profits. Exclude that dilution and Zynga stock is pricing in consistent growth for years to come.Can Zynga drive that growth? Certainly. It's done a nice job of late doing exactly that, but the improvement in recent years has come from acquisitions and improving already-developed games. Now, Zynga will have to take a different tack, and it will have to see a lot more success this time around for ZNGA stock to keep climbing.As of this writing, Vince Martin is long shares of IGT. He has no positions in any other securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post The Remarkable Turnaround in ZNGA Stock Is Winding Up appeared first on InvestorPlace.
Hasbro's (HAS) first-quarter 2019 results were driven by robust performance of the U.S. and Canada segment as well as Entertainment, Licensing and Digital segment.
PCM's (PCMI) first-quarter 2019 earnings are likely to benefit from focus on areas like cloud and security solutions despite headwinds related to the U.S. government shutdown and Brexit.
Comcast (CMCSA) first-quarter earnings are likely to benefit from the expanding high-speed Internet subscriber base amid ongoing cord-cutting and stiff competition in the cable TV market.
Apex Legends once dominated gaming livestreams, but its declining viewership points to some key trends in the gaming industry.
Electronic Arts (EA) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
These Tech Stocks Could Be Overvalued at Their Current Prices(Continued from Prior Part)ZNGA’s returns The stock of gaming company Zynga (ZNGA) has generated a return of 51% in the last 12 months. Since the start of 2019, the stock is up 36%.
Why Take-Two Interactive Might Be a Good Buy Right Now(Continued from Prior Part)Price to earnings Take-Two Interactive (TTWO) has a forward PE ratio of 28.9x for 2019. This valuation seems reasonable given the company’s significant revenue and
Why Take-Two Interactive Might Be a Good Buy Right Now(Continued from Prior Part)Primary revenue driver in the last quarter Gaming companies such as Take-Two Interactive (TTWO), Electronic Arts (EA), and Activision Blizzard (ATVI) are highly
Will Activision Blizzard Bounce Back after Its $29 Billion Loss?(Continued from Prior Part)PE ratio Activision Blizzard (ATVI) has a forward PE ratio of 35.9x for 2019. This ratio might seem high given the company’s negative revenue and earnings
Google's upcoming cloud gaming service is a bold step for the industry, but here's why most gamers are likely to stick with their consoles and PCs.
Why Take-Two Interactive Might Be a Good Buy Right NowStock has lost 8.6% this yearTake-Two Interactive (TTWO) stock had been on a roll for the last few years. The stock is up 370% in the last five years and 156% in the last three years. The stock
Activision (ATVI) announces that Sekiro: Shadows Die Twice game sales exceeded 2 million copies globally in less than 10 days of its release.