Long Electronic Arts after amazing earnings and future
Updated
First of all I am so happy Electronic Arts is down Premarket.
I have several reason to be excited. Lets first look at the earnings :
First lets look at the numbers :
EA reported adjusted earnings per share of 97 cents on revenue of $1.277 million. That compares to analyst expectations of adjust EPS of 80 cents on revenue of $1.23 billion.
But this isnt even the exciting part at all. believe me. The exciting part is what they provide and where it is heading.
I read the transcript of their earnings and this is the highlight :
Madden NFL 20 is their game which growing year over year constantly and thus will bring constant revenue. Unique players were up 12% year-over-year in Q2, games played in franchise mode more than doubled to over $100 million in the same period, and Madden Ultimate Team players are up nearly 20% year-over-year.
FIFA 20 which was launched recently is also deeply engaging fans and bringing new players into the franchise. Total players in FIFA were up nearly 15% year-over-year in Q2 and with the addition of Volta Football street-soccer experience, new to franchise players have grown 7% year-over-year.
i dont need anyone to tell me how popular this game is both on consoles, Pc and mobile. Everywhere i see this game being played both in office and at home! There is lot more detail here about the growing numbers and you can read it here : fool.com/earnings/call-transcripts/2019/10/29/electronic-arts-ea-q2-2020-earnings-call-transcrip.aspx . Specially about FIFA online and how popular it is.
Apex legends This is one of my favourite and even though I play games not so often, this one is quite engaging and is quite famous as a battle royal (still PUBG leads here though). The season 3 in apex legend saw a bigger peak and more players engaging and its a sign that this game will only continue to grow with time. reached 70 million users for third quarter.
Sims 4 Monthly average players were up more than 40% year-over-year in The Sims 4, an engagement across the franchise has led The Sims to surpass $5 billion in lifetime sales. The Sims continues to be one of the great franchises in gaming and we have plans to bring new experiences to its amazing plays for a long time to come.
launch of EA Access on PlayStation 4
new Plants versus Zombies: Battle for Neighborville
Star Wars Jedi: Fallen Order arrives worldwide on november 15
Battlefield V players
Besides earnings. it is one of the leading game providers and gaming industry is only going to get bigger and bigger and more popular with esports getting recognition.
Their recent collaboration with valve
Overall, its a huge buy for me after this drop. Oh, by the way, the reason for this drop is that EA cancelled the NBA game but quite sure this is not a big enough news to make a drastic drop and thus i expect it to go positive today or even the next few days. one of the best companies to buy and hold for short/long term.
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Buy EA Open after market open today 30.10.2019 Around 93/94
TP1 100
Tp2 102
Tp3 105
I believe in compounding and always reinvest and thus i dont hold for long term but you can hold this for long term as well!
Trade closed: target reached
I close this trade with all the profits hit
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