|Bid||86.42 x 800|
|Ask||87.30 x 1400|
|Day's Range||85.96 - 88.28|
|52 Week Range||85.96 - 139.91|
|Beta (3Y Monthly)||1.18|
|PE Ratio (TTM)||27.31|
|Earnings Date||May 14, 2019 - May 20, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||122.96|
Take-Two Interactive Software CEO Strauss Zelnick on the state of the video game industry.
Electronic Arts (NASDAQ:EA) stock plunged from $90 to below $80 in early February after the video-game publisher reported third-quarter numbers which fell well short of expectations and included a big reduction of the company's full-year guidance. I quickly responded to that selloff, calling it a gross overreaction to temporarily bad numbers, and said that it was a golden opportunity to buy EA stock, which would be a winner over the long-term.Source: Shutterstock Since then, EA stock has staged a huge comeback. EA stock quickly retook the $80 level. Then, it took back the $90 level just two trading days later. One trading day after that, Electronic Arts stock took out the $100 level and hit $105. In other words, in the three trading days following its big post-earnings selloff, EA stock rallied more than 30%.Why the surge? A game called Apex Legends. Long story short, battle-royale game Fortnite went viral in 2018, denting the traditional video-game oligarchy of Electronic Arts, Take-Two (NASDAQ:TTWO), and Activision (NASDAQ:ATVI). But EA just launched its battle royale answer to Fornite - Apex Legends - and this new game has gone parabolic.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Healthy Dividend Stocks to Buy for Extra Stability The adoption of the game has been absurd and unprecedented. Analysts are ringing the bull horn. EA stock has rallied.This rally of EA stock has legs. Not only does Apex Legends have the potential to enable the company's 2019 and 2020 results to beat consensus expectations, but the rest of the games that EA is set to launch in 2019 and 2020 aren't too bad, either. In fact, they're quite good, and there's reason to believe that the next twelve months could be very positive for EA.The price of EA stock doesn't reflect that type of outlook. Therefore, the rally of EA stock should persist. EA Should Do Well Over the Long-TermEA is coming off a really bad quarter.The most important game the company released in the holiday quarter, Battlefield V, was delayed by a month and didn't perform well against stiff competition from Call of Duty: Black Ops 4 and Red Dead Redemption 2. The company's most important new mobile game, Command & Conquer: Rivals, didn't perform up to par, either, as it was unable to really become one of the best-performing mobile titles. FIFA, EA's new soccer game, also didn't live up to investors' expectations., and EA didn't too well in Asia, either.Overall, it was a bad quarter for EA. Investors were fearful that those bad numbers were a sign of the times. The video-game industry has been red-hot for a long time. Now it's normalizing lower, and will remain weaker for longer. This belief, along with bad holiday numbers, caused investors to sell Electronic Arts stock.But their outlook is flawed.In the big picture, EA's trends are still attractive. It has a tailwind from micro-transactions, which is still alive and well. eSports, which is just starting to come into its own, remains a positive catalyst. Plus, digital engagement continues to rise. And augmented reality and virtual reality are becoming mainstream in the video-game sector. Those technologies will inevitably spark a demand surge throughout this whole industry.EA is at the epicenter of all of those positive trends. That's why I said the company's bad holiday numbers were largely forgettable in the big picture, and why I recommended buying EA stock on its post-earnings dip. The Next 12 Months Could Be Really Good for EA StockOver the past week, it has become increasingly clear that EA's bad holiday-quarter numbers were an outlier that won't last long. Indeed, they might not even last past this month.Largely thanks to Apex Legends, EA's near-term outlook is dramatically improving. Adoption rates for EA's new battle-royale game have been nothing short of absurd. The game eclipsed 25 million players in a week. It took Fortnite nearly six weeks to hit 20 million players, even though it was the hottest video game in all of 2018. Thus, Apex Legends is taking the hottest video-game trend of 2018 and making it hotter.The strength of Apex Legends more than overrides the weakness of Battlefield V last quarter. Indeed, considering what Fornite did in 2018, this Apex Legends tailwind could last for all of 2019, providing a persistent, strong lift to EA's numbers for the whole year.Beyond Apex, it appears that the games which EA is slated to launch during the rest of the year are also very promising. Anthem, set to debut this month, is generating a fair amount of buzz, and is the exact type of shooter/action game that should do well in today's environment. Firestorm, the battle royale mode of Battlefield V, is set to launch next month. Considering the robust success of Apex Legends, Firestorm should make some serious noise.On a recent conference call, EA said that FIFA 20 will have some "significant new features", and those new features could be the exact catalyst that are needed to reinvigorate the franchise's growth. Perhaps most exciting, EA is slated to launch a new Star Wars game at the same time that Disney (NYSE:DIS) unveils a new Star Wars movie, and the movie could drum up a great deal of interest in the game.Overall, the next twelve months could actually be pretty good for EA. That is quite contrary to what Electronic Arts stock is saying. EA stock trades at just $98 today, versus a high of $150 not too long ago. So, as long as this company's 2019-2020 lineup continues to impress investors, EA stock should stay in rally mode. The Bottom Line on EA StockThe recent weakness of Electronic Arts stock is a gross overreaction to temporarily bad numbers. Those numbers will get better in 2019 and 2020, thanks to the stunning success of Apex Legends, the rollout of the battle royale mode of Battlefield V, and a new Star Wars game. As those numbers get better, EA stock will continue to rebound.As of this writing, Luke Lango was long EA, ATVI, and DIS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Why 2019 Could Be a Good Year for Electronic Arts Stock appeared first on InvestorPlace.
Electronic Arts' (EA) recent release Apex Legends smashes records of Fortnite and bolsters its position in the battle royale genre.
Wall Street Reacts to Gaming Stocks after Disappointing Earnings(Continued from Prior Part)Analysts’ takeActivision Blizzard (ATVI) released its Q4 2018 earnings on February 12. The company reported GAAP revenues of $2.38 billion, compared to
Wall Street Reacts to Gaming Stocks after Disappointing Earnings(Continued from Prior Part)TTWOTake-Two Interactive Software (TTWO) released its fiscal 2019 third-quarter earnings results on February 6. It reported net revenues of $1.25 billion,
Wall Street Reacts to Gaming Stocks after Disappointing Earnings(Continued from Prior Part)Weak results Electronic Arts (EA) released its fiscal 2019 third-quarter earnings results on February 5 after the markets closed. The company missed revenue
Wall Street Reacts to Gaming Stocks after Disappointing EarningsGaming stocksEarnings season is nearly over, and most of the leading video gaming companies have released their quarterly earnings. Electronic Arts (EA) reported its earnings results on
A pair of major American video game makers took major stock hits Wednesday as Chinese regulators put the brakes on new game approvals. both plunged on news that China's top regulator of content won't approve any new video games while it works on clearing a backlog of applications. Redwood City, Calif.-based Electronic Arts has been in talks with Chinese video game giant Tencent Holdings to bring its newest big hit, "Apex Legends," to China's large and growing video game market.
The phenomenal success of "Fortnite" and its biggest competitor, Electronic Arts Inc. (NASDAQ: EA)’s "Apex Legends," points to a new model for how video game companies are increasingly making their money. The companies “have almost adopted a subscription service-type model — you get the initial adoption, and what you have to do is turn that into a stream of cash flow,” Shawn Cruz, senior trading specialist at TD Ameritrade, recently told Benzinga in a phone interview.
Netflix (NFLX) is leasing two studios, Cinespace and Pinewood, in Toronto, which will provide space of almost 250,000 square feet, including eight stages.
Analysts who spoke to CNBC mostly said the issues faced by the gaming heavyweights go beyond competition from the hugely popular Fortnite.
Activision''s (ATVI) 2019 Overwatch League sees participation from eight new teams that brings the total number of teams to 20.
2K and Firaxis Games today announced that Sid Meier’s Civilization® VI: Gathering Storm, the second expansion pack for the critically acclaimed and award-winning Sid Meier’s Civilization® VI, is now available for Windows PC. Civilization VI: Gathering Storm presents players with an active planet that generates new and dynamic challenges for the Civilization series, with new features and systems including Environmental Effects, new Engineering Projects and Consumable Resources for players to experience a living world full of danger and opportunity.
Activision Blizzard Surges Even as Analysts Lower Target PriceActivision Blizzard Activision Blizzard (ATVI) released its fourth-quarter earnings yesterday after the markets closed. The company’s earnings were largely in line with estimates.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Small-caps and large-caps are wildly popular amongRead More...
Amid the vast technology sphere, the video game segment is usually a no-brainer. Worldwide growth and mainstream acceptance have fueled gaming developers and publishers like Activision Blizzard (NASDAQ:ATVI). Unfortunately, Activision stock received a hammering due to competitive threats, disappointing revenues and broader market weaknesses.Things got even worse for the gaming giant earlier this month. Fears that management had no real answer for the free-to-play (FTP) Fortnite rattled ATVI stock. Moreover, competitors like Take-Two (NASDAQ:TTWO) suffered sharp volatility during this time despite posting relatively strong results.Additionally, the latest DLC (downloadable content) expansion from Activision's prized franchise, Destiny, failed to live up to expectations. This, from Activision chief operating officer, Coddy Johnson:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"We have not yet seen the full core re-engage in Destiny, which has kind of led to the underpeformance against our expectations to date. Some players we think are still in wait-and-see mode. So when you're in, you're deeply engaged. If you're not, we're hoping now's the time to bring players back in and win them back."While this latest disappointment played a role in Bungie's split with Activision, the two companies have had bad blood for years. It was reported that Bungie employees "cheered and popped champagne." Now game developer Bungie gets to keep Destiny. While the fallout wasn't surprising considering the years of tension, it leaves Activision stock with a critical content gap.Besides these headwinds, we haven't yet discussed the category five hurricane. In a rumor that was later confirmed, ATVI will cut 775 jobs, or 8% of its workforce. Typically, companies don't announce massive layoffs following a record revenue-generating year. However, disappointments have sadly become the norm for ATVI stock.That said, embattled shareholders and speculators saw some reason for optimism. Despite reporting mixed results for its fourth-quarter fiscal 2018 earnings report beating on earnings per share but missing on revenue -- Activision stock gained 3% on Tuesday's after-hours session, and is still trading 3% higher going into the open.Still, discount-diving ATVI has substantial risks. While the earnings print was okay, the company's guidance was decidedly awful. For both the upcoming Q1 and full-year 2019, management badly undercut analysts' expectations. * 9 U.S. Stocks That Are Coming to Life Again Can ATVI stock break out of its rut, or is the gaming giant merely setting up a bull trap? Here are my three main takeaways: Layoffs Potentially Streamline Activision StockIn business, we have two types of layoffs: productive and unproductive. The former is typically a response to a new, challenging environment. The latter usually stems from desperation as management attempts to demonstrate positive metrics on paper.Regarding the recent ATVI layoffs, we have confidence that we're dealing with the productive variety. For one thing, you can just look at the charts. Leading to the Q4 2018 disclosure and after it, Activision stock bumped up significantly.Furthermore, let's consider the details. Activision's restructuring plans won't impact development for new games. Instead, the job cuts will only impact "non-development teams and support staff."Given the wake-up call that the industry received over the past several months, it's unnecessary to keep the drag. In lieu of having a well-stocked administrative department, management promised to focus on live services, esports and advertising.As our own Laura Hoy points out, esports represents a "bright spot" for Activision stock, especially the company's Overwatch league. She writes:Not only has Overwatch been wildly popular, but the esports sector looks poised to continue growing exponentially. Some even believe that the genre will eventually grow to become a part of America's collegiate sports. So far, the growth runway for esports games looks impressive and as long as Overwatch is able to continue drawing in new users and holding on to players, it could be a growth engine for ATVI stock.No one likes layoffs. However, gaming companies have become complacent in addressing their consumer base. This is a painful but much-needed move. Easy Answer to FortniteWhenever you have a discussion about video game stocks, you can't avoid talking about Fortnite. Admittedly, I underestimated both the popularity and longevity of this family-friendly shooter game. Nevertheless, every product, even a juggernaut like Fortnite, has vulnerabilities.Primarily, the gaming phenomenon isn't that unique. Yes, it features a "battle royale" mode that everyone went nuts over. But even if that concept originated from Fortnite (it didn't), it isn't enough to construct a competitive firewall.We're not talking about compelling storylines and characters, attributes that game developers have considerable difficulty perfecting. Nor are we discussing lucrative licensing rights that are virtually impossible to overcome. Instead, we're squabbling over a gameplay mode.I concede that up until recently, the major gaming companies failed to dent Fortnite's armor. However, Electronic Arts (NASDAQ:EA) may have fired the first meaningful shot. Just recently, EA released its own FTP game called Apex Legends. Early indications suggest exceptionally positive feedback. Impressively, Apex convinced a few high-profile Fortnite advocates to jump ship towards the possibly new phenomenon. * 10 Stocks That Every 20-Year-Old Should Buy Of course, if that's all it takes - copying the FTP and battle royale mode - then don't give up on Activision stock! Arguably, the underlying firm has the greatest library and expertise in immersive first-person shooter games. Technical Risks for ATVI StockFundamentally, I'm confident that Activision stock will eventually find favor with Wall Street. Once the restructuring dust settles, ATVI will enjoy a leaner, meaner framework, one that focuses on productive endeavors. And recent developments show Fortnite isn't impenetrable.But should you jump on ATVI stock now? It seems tempting. On the one hand, a mismatch exists between the company's fundamental strengths and its technical discount. This may be the setup that contrarians dream about.On the other hand, I worry about the steep decline shares have suffered over a short timeframe. Click to EnlargeMoreover, the "bullish" response to the onslaught is completely substandard. Following last October's selloff, ATVI largely went rangebound before collapsing.Currently, we're witnessing a significant bump up after the Q4 results. But compared to the bearish attacks, a 3% move here or there doesn't do jack. It also leaves Activision stock dangling dangerously in a no-support zone.Like I said earlier, I'm optimistic about the long run. I think it's wise to creep into ATVI at this level -- and I do mean creep. The possibility that Activision shares could dip to $35 or below is a real one.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post 3 Takeaways for Activision Stock Following Q4 Earnings appeared first on InvestorPlace.
Take-Two, Las Vegas Sands, Unilever, Rio Tinto and Celgene highlighted as Zacks Bull and Bear of the Day
Take-Two Interactive Software, Inc. (TTWO) has been struggling lately, but the selling pressure may be coming to an end soon.
fell 4.5% to close at $89.25 on Tuesday after BMO Capital downgraded shares of the gaming company to underperform from market perform. Analyst Gerrick Johnson also cut his price target to $80 from $119.
Wall Street analysts had good things to say about video game publisher Electronic Arts on Tuesday, but soured on Activision Blizzard and Take-Two Interactive Software. EA stock climbed.