EA

Electronic Arts

TMT


Presented:02/19/2014
Price:$28.40
Cap:$8.79B
Current Price:$146.42
Cap:$38.68B

Presented

Date02/19/2014
Price$28.40
Market Cap$8.79B
Ent Value$7.30B
P/E Ratio21.22x
Book Value$8.67
Div YieldN/A
Shares O/S695.43M
Ave Daily Vol5,940,000
Short Int2.80%

Current

Price$146.42
Market Cap$38.68B
Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services for video game consoles, personal computers, mobile phones, tablets and electronic readers, and the Internet. It provides games, and related content and services under the EA brand in various categories, including action-adventure, role playing, racing, and first-person shooter games. The company also offers a collection of sports-based video games, and related content and services comprising simulated sports based on real-world sports leagues, players, events, and venues, as well as casual games with arcade-style gameplay and graphics under the EA SPORTS brand. In addition, it provides compelling games, and related content and services for mass audience under Maxis Label, as well as develops easy-to-learn games. Further, the company offers casual games, such as cards, puzzles, and word games through its pogo.com, as well as on other platforms; and digital content and Internet-based advertising services. Additionally, it develops digital games, such as MONOPOLY, SCRABBLE, YAHTZEE, NERF, and LITTLEST PET SHOP for mobile and other platforms. The company was founded in 1982 and is headquartered in Redwood City, California.

Highlights

The presenter acknowledged the risk that he may be a little early in building his short position in video game publishers like Electronic Arts (EA) and Activision (ATVI), but he is convinced that this most recent console cycle (PS4 sales were decent but demand for the new Xbox was “disappointing”) did not create the larger installed base bulls were hoping for. If his thesis is correct, it is likely that the secular growth story in the industry has run its course; “the tablet and smartphone have killed the tail of the video game story.”

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Idea Discussion

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