93.88 0.00 (0.00%)
After hours: 5:01PM EDT
|Bid||93.81 x 900|
|Ask||93.81 x 2200|
|Day's Range||92.71 - 94.66|
|52 Week Range||73.91 - 109.36|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||13.27|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
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...
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.
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.
Activision Blizzard (ATVI) is expected to benefit from Call of Duty franchise strength following the launch of Black Ops 4's new content season.
Shares of video game publisher Activision (NASDAQ:ATVI) plunged in late 2018 alongside the rest of the market on slowing growth concerns. But, unlike the rest of the market, Activision stock didn't bounce back in early 2019.Source: Lauren Elisabeth / Shutterstock.com Instead, ATVI kept falling. Through the end of May 2019, the S&P 500 was up 10% year-to-date. The stock, meanwhile, was down 7% year-to-date.That's all changed recently. From the end of May 2019 to today, the S&P 500 has climbed 9%. ATVI stock is up a whopping 24% over that stretch.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhy the change of trend in ATVI stock? And, more importantly, will it last?In short, the change of trend in ATVI stock has to do with investors realizing that, while video-game trends are depressed today, both Activision and the video game market are set for big growth in 2020 and 2021. * 7 Worst Stocks in the S&P 500 in 2019 Investors are buying ahead of all that growth. But, all that growth still isn't fully priced into the stock, and the fundamentals say that this stock should trade north of $60 within the next 12 months.As such, while I like ATVI stock less at $53 than I did at $43, I still like Activision stock here, and think that there's healthy upside potential in the foreseeable future. The Fundamentals Are Rock SolidThe core fundamentals underlying Activision stock are rock solid and pave the way for this company to have an outstanding 2020 and 2021.Big picture, the video game market is a secular growth market, with consistent double-digit sales growth driven by secular trends such as increasing digital channel consumption, global urbanization, and next-gen tech innovation.This secular growth market has huge catalysts on the horizon, with the launch of a new generation of video game consoles in 2020 - the first new-gen console refresh cycle since 2013. New-gen console refresh cycles always provide huge upward catalysts for the whole market. This one should do that even more because these new consoles will have cloud gaming capability.In this secular growth market with huge catalysts on the horizon, Activision is a very important player with broad exposure. Everywhere the gamer is, Activision is there, too. In the console world, Activision owns arguably the video game world's most successful franchise ever, Call of Duty.In the desktop world, Activision owns fan favorite titles such as World of Warcraft and Diablo. On the mobile front, Activision is behind arguably the mobile world's most successful franchise ever, Candy Crush. On the eSports front, Activision owns the world's most fleshed-out and popular eSports league in Overwatch League.Because of this broad exposure, as goes the video game market, so goes Activision. In 2020 and 2021, then, as the video game market surges higher on the back on new console releases, Activision's revenues and profits should surge higher, too, which should lead to a sizable rally in ATVI stock. Activision Stock Has UpsideThe numbers here for ATVI to be a $60 stock in 12 months aren't too hard to follow.The global video game projects to grow sales at an 8% clip in both 2020 and 2021. Activision, given its broad and healthy exposure to the new console refresh cycle in late 2020, projects as a bigger grower during this stretch. At present, the Street is modeling for 8-11% revenue growth in 2020 and 2021 for Activision. That seems about right me.During this stretch of high single-digit to low double-digit revenue growth, profit margins should trend higher thanks to three things.First, favorable demand drivers will give Activision strong pricing power on its new releases, leading to higher gross margins. Second, favorable engagement drivers will increase the volume of micro-transactions in 2020/21, which should also boost margins. Third, high single-digit to low double-digit revenue growth is enough to drive positive operating leverage throughout the whole business.Big picture, then, Activision projects as a high single-digit to low double-digit revenue grower over the next two years, with favorable upside margin drivers. That should produce low to mid-teens EPS growth. Indeed, Wall Street expects Activision to grow EPS by 15% in 2020 and 13% in 2021, to a 2021 EPS base of about $2.85.The video game stocks - Activision, Electronic Arts (NASDAQ:EA), and Take-Two Interactive (NASDAQ:TTWO) - historically trade around 22- to 23-times forward earnings. Based on the midpoint of that historically average valuation, $2.85 in 2021 EPS should correlate to a 2020 price target for ATVI stock of about $64.Thus, over the next 12 months, ATVI stock has visible and fundamentally supported upside to levels above $60. Bottom Line on Activision StockActivision stock is a long term winner that got ahead of itself in 2018 and has since taken a tumble, but with shares now more appropriately valued, the secular growth narrative in-tact, and significant upside catalysts on the horizon, ATVI stock looks ready to get back to winning mode over the next few quarters and years.As of this writing, Luke Lango was long ATVI and EA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Worst Stocks in the S&P 500 in 2019 * 7 Reasons to Own Intuit Stock -- The Unsung Hero of Fintech * Apple and 4 Other Tech Stocks on the Move The post Activision Stock Has Upside to $60 over the Next 12 Months appeared first on InvestorPlace.
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
The Zacks Analyst Blog Highlights: Activision Blizzard, Electronic Arts, Take-Two Interactive and Zynga