EA - Electronic Arts Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
106.89
-0.14 (-0.13%)
As of 11:47AM EST. Market open.
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Previous Close107.03
Open107.72
Bid106.56 x 900
Ask106.58 x 1000
Day's Range106.34 - 109.22
52 Week Range86.24 - 114.13
Volume1,097,242
Avg. Volume2,282,549
Market Cap30.965B
Beta (5Y Monthly)1.05
PE Ratio (TTM)11.25
EPS (TTM)9.50
Earnings DateMay 04, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est119.55
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  • Electronic Arts Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
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  • Analysts: These 3 Video Game Stocks Represent Exciting Plays
    TipRanks

    Analysts: These 3 Video Game Stocks Represent Exciting Plays

    Video gaming is an enormous business. According to VentureBeat, profits from the industry are expected to reach $180.1 billion in 2021. Not only are the companies behind the popular titles capable of seeing huge profits, but the players, too. While the idea might have seemed far fetched a few years ago, at the top end of professional esports, there are players taking home significant paychecks, both from competitions and from streaming-derived revenue on popular platforms such as Amazon’s Twitch. In addition, advances in technology provide VR and mobile gaming room for significant growth in the new decade.So, with our gaming consoles in hand, we decided to look further down the rabbit hole. Investment firms have been keeping a tab on players in the game, adding companies in the sector to their Millennial Exposure lists. Using TipRanks’ Stock Comparison tool, we decided to see how three gaming companies’ growth stories might play out in the year ahead. Let’s get this game started, then. Activision Blizzard (ATVI)Let’s start off with a gaming giant. American video game holding company Activision Blizzard is the most successful standalone interactive entertainment company in the world. Among its portfolio are some of the most successful franchises in the gaming industry. These include Call of Duty, Overwatch, Candy Crush Saga, World of Warcraft and Guitar Hero, amongst others. ATVI is one of only two gaming related companies to be listed on the S&P 500.Following all-time highs achieved in the fall of 2018, ATVI stock came back down to Earth later that year as the rest of the gaming industry declined. The company recovered and performed well in 2019. Roughly in line with the broader market’s fortunes, the share price exited the year with a 28% gain. As major Activision Blizzard news hogged the headlines last month, the upward trajectory should continue in 2020.So, what happened? In January, the company reported a major transition that involved signing a multi-year partnership with Google. ATVI will use Google Cloud for its hosting infrastructure, and, excluding China, YouTube will become the exclusive streaming outlet for broadcasts of ATVI’s esports competitions.The new deal with YouTube will see ATVI leave Amazon’s Twitch after two years, and while the move appeared to be a curious one at first, once investigated, it makes more sense. Despite Twitch being the dominant player in the video game streaming universe, its growth is slowing down. With 1 billion users and an increase of over 45% in total hours spent watching gaming between the first and fourth quarter last year, YouTube becomes the logical choice. Google’s marketing nous, analytics and infrastructure technology are also reasons for the move.Nomura’s Andrew Marok believes ATVI is “set up well over the medium term.” The analyst said, “The announcement of YouTube as ATVI’s exclusive esports streaming partner registers as perhaps the most significant partnership in an increasingly competitive environment for gaming-focused streaming providers… We think the arrangement provides an interesting opportunity for ATVI; while YouTube is not primarily a gaming service, its broad-based nature and wide audience creates the opportunity for ATVI’s esports leagues to expand their reach into more casual fans that might not otherwise seek out esports content on gaming-specific sites.”Marok, accordingly, reiterated a Buy rating on ATVI along with a price target of $70. The figure implies upward movement of a further 18%. (To watch Marok’s track record, click here)The gaming king gets a thumbs up from the rest of the Street, too. 17 Buys and 1 Hold coalesce into a Strong Buy consensus rating. At the $64.61 average price target, the analysts see room for further growth of 9% in the year ahead. (See Activision Blizzard stock analysis on TipRanks) Electronic Arts (EA)If you were wondering what other gaming company is listed on the S&P 500, then wonder no more. Electronic Arts is the maker of the Battlefield series, EA Sports titles FIFA, Madden NFL and NBA Live, as well as Medal of Honor and Apex Legends, amongst a plethora of others. With a market cap of more than $31 billion, EA is the second largest gaming company in the US and Europe.EA’s performance bested the market in 2019, with the company adding 36% to the share price along. Reporting FQ3 2020 earnings only last week, revenue came in at $1.59 billion, a 23% increase over the same period last year and beating the guidance of $1.51 billion. GAAP EPS of $1.18 easily beat last year’s $0.86 and guidance’s $0.92. Additionally, the all-important figure of net bookings jumped 23% to $1.98 billion.Despite beating estimates across the board, the company’s stock fell by over 3% following the release. The reason? Soft guidance. Investors were disappointed with the Q4 bookings estimate of $1.152 billion, which was below the expected $1.2 billion. For the full year, the company forecasts bookings of $5.15 billion, lower than the consensus estimate’s $5.2 billion.So, should the light guidance figures be a cause for concern? Not at all, argues Oppenheimer’s Andrew Uerkwitz. According to the 5-star analyst, EA’s plan to deliver long-term, stable growth along with games that appeal to a broader range of players with different preferences is a sound strategy.EA’s Q3 beats on EPS and net bookings are reason enough for Uerkwitz to reiterate an Outperform rating on the gaming giant. Moreover, the positive print means the price target gets a bump, too, from $110 to $125. The implication? Possible upside of 17%. (To watch Uerkwitz’s track record, click here)What does the rest of the Street make of EA’s prospects in 2020, then? A Strong Buy consensus rating breaks down into 15 Buys and 5 Holds. Should the average price target of $120.90 be met over the coming months, expect a 13% hike to the share price. (See Electronic Arts stock analysis on TipRanks) Glu Mobile (GLUU)Compared to the two other gaming giants on our list, Glu Mobile has a ways to go. The small-cap, though, is positioning itself in the fastest growing segment of the industry - mobile gaming.A Research and Markets report expects the mobile gaming market (valued at $48.65 billion in 2017) to grow at a CAGR (compound annual growth rate) of 19.6% between 2018 to 2026. As the technology evolves and 5G networks become more widespread, Glu’s sole focus on developing games for smartphones and tablets positions it well for the years ahead.Games currently driving the majority of bookings for the company include Design Home, Covet Fashion and Tap Sports Baseball. Its newly released title, Diner Dash Adventures, is performing well so far, while the company’s ever-expanding portfolio should see three new additions this year: Disney Sorcerer’s Arena, Deer Hunter Next and Originals, a choose-your-own adventure game.KeyBanc's Tyler Parker recently initiated coverage of Glu Mobile with an Overweight rating and $8 price target. The figure conveys his belief Glu can add 28% to its share price over the coming year. (To watch Parker’s track record, click here)Parker believes the game developer is among the companies most poised to benefit from the growing mobile gaming sector. The analyst sees improving profitability for Glu starting in the second half of 2020, with “significant margin expansion” to follow."We believe the mobile gaming market is attractive given the strong growth expected over the next few years, which should benefit scale mobile-first publishers,” he said.The Street agrees. Of the 4 analysts tracked over the last three months, all press the Buy button on Glu. The company’s Strong Buy consensus rating is accompanied by a $7.38 average price target, and indicates 18% upside potential. (See GLUU price targets and analyst ratings on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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  • MarketWatch

    Electronic Arts stock dips after BMO downgrade

    BMO analyst Gerrick Johnson downgraded shares of Electronic Arts Inc. to market perform from outperform on Monday, citing concerns about whether the company can keep up its recent momentum. The stock is off 0.7% in premarket trading. "'Apex Legends' guidance for FY20 was maintained and has not been increased since first introduced last May," Johnson wrote. "And management has yet to communicate a 'Star Wars Jedi' monetization plan - we see good upside potential, but also a lot of risk, as one misstep could quickly turn fickle fans against the game." He said that EA has done a good job of bringing players back to its sports games after the "Fortnite" hype but he worries that the company's slate of titles for fiscal 2021 "lacks pizzazz." EA shares have added 13% over the past three months, as the S&P 500 has gained 5.2%.

  • Video Games Learn How to Take More of Your Cash
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    (Bloomberg Opinion) -- EA micro-transactions: They’re in the game. If you’re like me, you grew up hearing a similar catchphrase, likely while playing the FIFA soccer video game on an earlier iteration of the PlayStation system. EA refers, of course, to Electronic Arts Inc., the game publisher’s parent company, which nowadays is valued north of $30 billion. FIFA is still its most popular franchise, but selling a disc at a local GameStop is no longer the primary way companies like EA make money. Increasingly, the industry model is centered on digital downloads, subscriptions, mobile play, live online events and — for the big moneymaker — tiny in-game purchases, also known as micro-transactions. That notable shift makes a year like 2020 an interesting one. Expected later this year are the launches of Sony Corp.’s PlayStation 5 and Microsoft Corp.’s Xbox Series X, the next generation of video-game consoles (and potentially the last, as gaming shifts to the cloud). Traditionally, that would mark a pretty important stage in the business cycle for EA and its publishing rivals, such as Activision Blizzard Inc. and Take-Two Interactive Software Inc.; new consoles need new games, which means a big sales boost is on the way. But this time, it comes without the lull that usually occurs leading up to it. And that’s thanks to — gamers, you love to hear it — micro-transactions. “Because of all that ancillary revenue, primarily from micro-transactions, games aren’t as tied to console cycles as they used to be,” Michael Pachter, an analyst for Wedbush Securities, said in a phone interview. EA’s quarterly results released last week showed that the category it calls live services, which include in-game purchases, was the biggest driver of net revenue, bringing in $677 million. That compares with $469 million from packaged goods (e.g., physical discs) and $286 million from full-game downloads. Activision Blizzard and Take-Two are both scheduled to report their earnings Feb. 6.Live services can extend the useful life of a game, giving EA more opportunities to make money from users long after the initial purchase. A popular version of this is FIFA Ultimate Team, which is a bit like fantasy soccer in that users try to assemble the best team possible by paying for points that can then buy packs of players, hopefully some star names. According to one fan site, a “silver players pack” costs the equivalent of 83 cents, while a “jumbo rare players pack” is about $17. For a different kind of example of a micro-transaction: Activision Blizzard’s World of Warcraft players can buy Argi, a digital pet, for $10. There’s also a Call of Duty: Modern Warfare “battle pass bundle” for the equivalent of $24, according to the Washington Post.EA got off to a rough start with micro-transactions. In 2017, the company’s Star Wars Battlefront II was originally developed with virtual loot boxes that could enhance a character’s abilities. It turned into a major controversy, the concern being that when in online-multiplayer mode, users who shelled out more money were more likely to win. Amid the backlash, EA got rid of the loot boxes and instead left micro-transactions for benign cosmetic upgrades.Then in November, EA released Star Wars Jedi: Fallen Order to a much warmer reception. The company originally predicted it would sell 6 million to 8 million units by the end of March, but it has already surpassed that number and now sees 10 million in sales. And this time, it’s treading carefully in bringing live services to the game. “We’re very conscious about not trying to get people to spend beyond what their spend levels are,” Blake Jorgensen, EA’s chief operating officer and chief financial offer, said on the earnings call.On top of the success of live services, EA — along with its competitors — is preparing to introduce new hit games for the next-gen consoles, such as a new version of Battlefield and another Star Wars. Walt Disney Co.’s Lucasfilm makes the movies, but for now, the force is with EA.To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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    EA Quarter Boosted By Strong Live Services Growth

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  • Electronic Arts (EA) Q3 Earnings & Revenues Increase Y/Y
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