Stock Investment — Electronic Art
This is article is to help myself to determine whether to invest Electronic Arts (EA)’s stock
Yes, I should invest
EA have several largest and well-known games titles including Battlefield, Start Wars, FIFA, NFL Madden, Need for Speed. All of them have huge fan bases.
In the past several years, we see entertainment industry has been growing rapidly. This is because all the platforms (Cellphone, YouTube, Twitch) are widely-adopted by billions of users. And the products (movies, games) of the entertainment industry are very scalable by its nature.
Ready for the trend
EA is in a perfect position and ready to jump on several hot industry trend: Virtual Reality (i.e. VR in Battlefield and Need for Speed), Mobile ( i.e. NBA live)
No, I should not invest
Financials are not impressive at all. 2016’s revenue, operating income, margin are all less than 2015’s
Unless the VR technology becomes BIG, EA’s growth trajectory will only be steady. So I do not think it will provide a huge return, but it is definitely a “Buy the Dip” stock.