Electronic Arts Inc. (NASDAQ:EA) has provided lucrative returns to its investors in the last couple of months with the stock rising by more than 120% in the same period. Even with this remarkable appreciation in the shares price over a 2-year period, the market experts expect further upside in the stock price.
The company has a highly competitive and strong business structure within the electronic gaming market. Also, it has a healthy track record in delivering positive cash flow and earnings. It boats range of popular gaming titles, along with a planned mobile strategy, which helps it to achieve a growing customer base.
Electronic Arts mobile sales jumped 16% to $165 million in the first quarter, and this growth can be attributed to its popular titles. In addition, console titles sales continue to remain robust. The present time shows a period of strong growth for the entire gaming industry, with the mid-gen latest upgrades of PlayStation 4 expected to come in September. Andrew Wilson, the CEO, cites the firm as having experience in rapidly modifying its titles to suit modified platforms.
Considering all the latest developments, a mid-gen upgrade will present a logistical challenge. The launch of new upgrade is significant because it does indicate a momentous shift in gaming tastes. However, the step has come under criticism as a profit-making exercise on the part of manufacturer.
From a financial view, Electronic Arts continues to excel. While the firm trades at a higher valuation, the company’s both EPS (diluted) and free cash flow has continued to grow and has considerably outperformed that of peer Activision Blizzard, Inc. (NASDAQ:ATVI).
Coming to another known name in the gaming industry, SPYR Inc (OTCMKTS:SPYR), it is evident that trading volume in company’s stock has increased of late. This increase in volume can largely be attributed to an email promotion that has been launched recently as well.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of journaltranscript.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: