|Bid||132.31 x 800|
|Ask||132.29 x 1000|
|Day's Range||131.04 - 134.61|
|52 Week Range||99.63 - 134.61|
|PE Ratio (TTM)||41.24|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
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.
The Sell-in-May (SIM) period is a well-known time interval of seasonal weakness. This SIM period has tended to be a bit weaker at this point in the election cycle, year 2 years after the election, as 2018 is. Seasonal patterns can be quite strong in some stocks.
Over the years, Walt Disney Co (NYSE:DIS) has established a solid track record when it comes to acquisitions. With that deal now in potential jeopardy, the question becomes, “What will Disney buy next?” And there are a number of candidates for Disney’s next acquisition. A rumored bid from Comcast in the $60 billion range would require Disney to offer over 40% of its current market capitalization — and make it very reliant on the deal succeeding.
Electronic Arts (EA) reported record revenue of $5.2 billion in fiscal 2018, with costs of revenue of $1.3 billion and operating income of $1.4 billion. Driven by its record revenue, EA also reported record operating cash flow of $1.7 billion.
Mathew Hughes, an 18-year-old high school student in Marion, Ohio, has spent between $150 to $200 on the hugely popular video game Fortnite. Hughes pays for his expenses through money he’s made through inheritance from his late father, cryptocurrency investments and jobs including working at Panera and Arby’s. One of his friends has spent between $400 and $500, he said, and other players spend even more. Fortnite, meanwhile, has been raking in cash.
As we’ve discussed, Electronic Arts (EA) has called fiscal 2018 its strongest year ever with regards to mobile gaming. Although EA’s mobile gaming revenue rose only 1% YoY (year-over-year) to $176 million in fiscal 4Q18, it rose 5% YoY to $659 million in fiscal 2018. Electronic Arts has introduced several engaging games to penetrate this market and compete with Zynga (ZNGA) and Activision Blizzard (ATVI).
Electronic Arts (EA), which is an American video game company and a leading console, PC, and mobile game publisher, was the S&P 500’s second-best performer on May 9. After regaining strength last week, Electronic Arts started this week on a mixed note and traded with mixed sentiment in the first two trading days of the week. Electronic Arts opened higher on Wednesday and rallied to record high price levels amid the improved market sentiment.
The S&P 500’s top gainers on May 9 were: TripAdvisor (TRIP) gained 22.8%. Electronic Arts (EA) gained 5.8%. Occidental Petroleum (OXY) gained 5.4%. LyondellBasell Industries Nv (LYB) gained 5.1%. Micron Technology (MU) gained 5.0%. TripAdvisor
Electronic Arts (EA) believes it is in a competitive position to lead the gaming market, with intellectual property and technology investments aimed at enhancing players’ experience. The FIFA World Cup, to be held later this year, is arguably the biggest sporting event in the world. EA, seeking to leverage this event, plans to launch World Cup content in FIFA 18.
On April 26, I published an article entitled “5 Stocks I am Watching in a Turbulent Market.” Let’s take a look at how each pick has performed compared with the S&P 500:StockClosing Price on 4/26Closing Price on 5/9Gain/(Loss)Gain/(Loss) of S&P 500Alibaba Group Holding Ltd. (BABA) [Paired with JD.com in post] $173.90$195.43 12.38% 1.16% JD.Com Inc. (JD) [Paired with BABA in post]$36.50$37.141.75% 1.16%AutoZone, Inc. (AZO) $619.29$658.336.30% 1.16%Scotts Miracle-Gro Co. (SMG) $83.45$ 80.54(3.49)% 1.16%AT&T Inc. (T)$33.10$31.40(5.14)% 1.16%Take-Two Interactive Software, Inc. ...
Electronic Arts (EA) aims to grow its audience reach across gaming platforms. Its Battlefield franchise has over 54 million players to date across Xbox (MSFT) PlayStation (SNE) platforms as well as PCs (personal computers). This franchise continues to attract players and is expected to drive engagement in fiscal 2019 as well.