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.
The highlights
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.
