|Bid||129.81 x 800|
|Ask||132.58 x 800|
|Day's Range||131.15 - 132.60|
|52 Week Range||99.63 - 134.61|
|PE Ratio (TTM)||41.13|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
The other day, EA and DICE announced Battlefield 5, the follow-up to the successful throwback to World War 1 that was Battlefield 1 and a chance for the Battlefield series, like the Call of Duty series before it, to explore its World War 2 roots. If you're excited and can't quit for October, however, you're in luck: there's a World War 2 Battlefield game that you can play on Xbox One right now. Battlefield 1943 just became available on Xbox One through Microsoft's backwards compatibility program, the company announced today.
Calling it like it is, video game publisher Electronic Arts Inc. (NASDAQ:EA) was seemingly slower to wade all the way into eSports waters than rivals like Activision Blizzard, Inc. (NASDAQ:ATVI), Take-Two Interactive Software, Inc (NASDAQ:TTWO) and Tencent Holdings Ltd (OTCMKTS:TCTZF). Whereas those other game makers offer fantasy and fictional game play that couldn’t be witnessed any other way, EA — perhaps best known for its sports games — was largely competing with actual sports for viewers. There’s been a subtle but not insignificant shift in that paradigm, though, that current and potential owners of EA stock may want to take note of.
Activision Blizzard (ATVI) stock has returned 25% in the last 12 months, 7.9% in the last month, and 1.8% in the last five days. ATVI stock fell 6% in 2016 and rose 76% in 2017. Since the start of 2018, ATVI stock has risen ~13%.
Activision Blizzard has attributed this revenue growth to a successful shift toward a games-as-a-service model. In the second quarter, Activision Blizzard expects revenue of $1.55 billion with a gross margin of 78% and an operating margin of 31%. It has estimated non-GAAP earnings per share of $0.46. Activision Blizzard has forecasted revenue of $7.36 billion in fiscal 2018 with a gross margin of 78% and an operating margin of 34%.
Moody's Investors Service, ("Moody's") placed Electronic Arts, Inc.'s ("EA") Baa2 senior unsecured debt ratings on review for upgrade. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating.
Well, that's because "Battle Royale" is Fortnite's incredibly popular game mode. Seems like Activision is saying "game on" to the insanely popular free-to-play game from Epic Games. Can't wait to see what other surprises Activision has up its sleeve at E3?
Note: This column appears in the March-April issue of Forbes China, the Chinese-language edition of Forbes. Robert Daugherty is the co-founder and executive director of Forbes Global Education. With nearly one billion users worldwide and over 460 million active users in China, online gaming is one of the largest and fastest growing business sectors in the world. China ranks first with $27.5 billion revenues. The U.S. and Japan are second and third with revenues of $25.1 billion and $12.5 billion, respectively.
Activision Blizzard’s (ATVI) digital revenue accounted for 74% of its total revenue in the first quarter. Electronic Arts (EA) and Take-Two Interactive (TTWO) have managed to increase their digital revenue, driven by the industry-wide transformation toward digital gaming. Digital revenue accounted for 74% of total revenue in fiscal 2016, and this figure rose to 79% in fiscal 2017.
In March, the stock prices of gaming companies Activision Blizzard (ATVI), Take-Two Interactive (TTWO), and Electronic Arts (EA) fell, driven by concerns over the tremendous success of Epic Games’ Fortnite. Epic Games is backed by China’s (FXI) Tencent Holdings, which is the global leader in the gaming space. Fortnite was released in late 2017 and, by March 2018, it became the most popular battle royale game.
Activision Blizzard (ATVI) launched Overwatch League in January 2018, and it continued to generate strong viewership globally. Overwatch League has driven player engagement for the Overwatch franchise as the number of hours spent playing and watching this game rose sequentially. This league continues to announce new engagement programs aimed at driving viewing experiences. When Overwatch League launched in January, it attracted 10 million viewers in the first four days of the event with an average viewership of 280,000 on a per-minute basis.
No one was expecting the Switch to be as wildly successful as it has. While NTDOY stock is already up a quick 16% so far in 2018, Nintendo stock has traded sideways since mid-January. Could that change going forward and is NTDOY stock actually a screaming-good buy right here?
When investors think of video-game-maker stocks, names like Activision Blizzard, Inc. (NASDAQ:ATVI) or Electronic Arts Inc. (NASDAQ:EA) come to mind. The former is the outfit behind the popular Call of Duty franchise, and the latter dominates the sports games market. Epic Games, backed (more or less) by China’s Tencent Holdings Ltd (OTCMKTS:TCTZF), rarely works its way into the discussion, though.
Leading video game developer Electronic Arts Inc. (NASDAQ:EA) is in the midst of one of my favorite chart set-ups — the breakout/pullback. It’s exactly what it sounds like it would be. EA underwent a heavy-volume rally to a new all-time high on the back of a strong earnings report but has since pulled back to test its old record (the black line) as support.
As of this writing, TTWO stock is up 3%! I have to say, it’s impressive to watch a stock undershoot analysts’ earnings, revenue and guidance expectations for the year fall one minute and rally the next. Its Grand Theft Auto Mobile title saw some big numbers, as did its NBA 2K18 and WWE 2K18. Another may be that in the fourth quarter of this year, its much-anticipated launch of Red Dead Redemption 2 — as well as new NBA and WWE games — hits the market.
The math on Walt Disney Co (NYSE:DIS) is pretty simple. Right now, ESPN gets $9.06 each month from every cable and satellite subscriber, whether those people watch ESPN or not. The new “ESPN+” streaming package is priced at $4.99 per month, and not everyone is a sports fan.
Earlier this week, Electronic Arts Inc. (NASDAQ:EA) reported its fiscal fourth-quarter earnings results. Analysts are applauding the quarter, raising price targets left and right since the report. The highest price target, from Wedbush Securities, sits all the way up at $158, implying almost 20% upside from current levels.
Bethesda is slated to release a new game. On Monday, Bethesda Softworks LLC officially dropped the trailer for Rage 2. Sorry, Bethesda fans, sounds like any news about Bethesda's more popular games will have to wait 'til E3.
The video gaming industry has been on a tear over the past few years. Activision Blizzard, Inc. (NASDAQ:ATVI) has fully enjoyed the run. Activision stock is up more than 200% over the past three years. Like Activision’s customers, its shareholders have also been playing to win.
In fiscal 2019, Electronic Arts (EA) expects GAAP (generally accepted accounting principles) net revenue of $5.6 billion, with costs of revenue of $1.6 billion and GAAP EPS (earnings per share) of $3.55. In 1Q19, EA expects GAAP net revenue of $1.1 billion, with costs of revenue of $226 million and GAAP EPS of $0.64.
Electronic Arts (EA) reported net bookings of $1.3 billion in fiscal 2018, above its guidance of $1.2 billion and almost 16% higher than the $1.1 billion seen in fiscal 4Q17. Digital net bookings rose to $1.1 billion in 4Q18, up from $885 million in 4Q17. This increase in digital revenue was attributed to the success of EA’s event-driven live service vertical.