Opinions
The Weekly Buzzing Stocks by Billy Kawasaki
Electronic Arts Inc
EA-Q
TOP PICK
Mar 28, 2024
$132.890
Stock price when the opinion was issued
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TOP PICK
Growth in video games growing as more people use tools to communicate and socialize.
Added revenue streams with in-game purchases and upgrades to tools/guns etc.
Transition into metaverse with users playing video games.
Does not believe company is a legacy player within sector.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly This top video game developer has seen recent quarter sales be up 22% with recent releases of key game updates like FIFA 23 (the largest launch in EA FIFA franchise history). The company is shifting more to a subscription revenue style that will add longevity. It has been using some cash reserves to buy back shares. We recommend placing a stop-loss at $100, looking to achieve $151 -- upside over 26%. Yield 0.6% (Analysts’ price target is $150.64)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate this top video game developer as a TOP PICK. With the 2022 World Cup starting, the release of FIFA 23 has been the largest launch in EA FIFA franchise history. The company is shifting more to a subscription revenue style that will add longevity. It has prudently been using some cash reserves to buy back shares. We recommend trailing up the stop-loss (from $100) to $114, looking to achieve $149 -- upside over 15%. Yield 0.5% (Analysts’ price target is $148.76)
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TOP PICK
TOP PICK
This pick results from his looking at the application layer 12 months down the road. Model training algorithms are already being monetized in healthcare, education, and now sports/entertainment. Investor day last week saw a lot of AI tools. Yield is 0.5%.
12-month price target of $167.50. Buy 1/3 here around $141, $134, and $125.
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TOP PICK
Likes the portfolio, though a bit weak in mobile. Discretionary spend on some titles has been a bit lower. Over the long term, can grow 5-6%. 30% free cashflow margins, enough to buy back 5-6% of shares every year. In-game transactions are 99% gross margins. Yield is 0.6%.
(Analysts’ price target is $146.38)
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Electronic arts inc. is a leading global interactive entertainment software company. ea delivers games, content and online services for internet-connected consoles, personal computers, mobile phones and tablets. Social media mentions are up 450% in the past 24h.