|Bid||97.00 x 1400|
|Ask||99.20 x 800|
|Day's range||97.37 - 99.35|
|52-week range||73.91 - 108.80|
|Beta (3Y monthly)||0.92|
|PE ratio (TTM)||10.65|
|Earnings date||28 Jan 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||109.86|
ATVI stock has risen around 2%, while EA stock has fallen 1% at the time of this writing. The shares are moving in opposite directions.
Investing.com – Wall Street was flat on Wednesday as investors waited for a hotly-anticipated monetary policy decision from the Federal Reserve, with expectations of a rate cut undimmed by figures showing stronger-than-expected economic growth in the third quarter.
(Bloomberg Opinion) -- Video games usually give you infinite attempts to fail and respawn when trying to pass a level. Ultimately, though, you’d rather succeed at the first attempt. And the more time you spend playing just a handful of different games, the better you’ll get at them.That’s much like the gaming industry itself. If Ubisoft Entertainment SA’s latest flagship title proves to be a flop, the French company can try to fix any problems with downloadable software updates over the subsequent months. But it’s still better to get everything right the first time around.That’s why the decision last Thursday from the maker of games such as Assassin’s Creed and Far Cry to cut its profit outlook and push back three of its major game releases is sensible. But if the brothers who founded and control the firm are astute, it should also herald a long overdue strategy pivot. The shares fell 16% on Friday, and have yet to fully recover.Ubisoft’s approach has long differed from its major rivals, Activision Blizzard Inc., Electronic Arts Inc. and Take-Two Interactive Software Inc. While those U.S. firms have reduced the number of blockbuster releases (known as AAA games) to two or three a year, Ubisoft still launches five or six.Not only does that inevitably spread resources more thinly, it also ignores the new realities of gaming habits, per Bloomberg Intelligence analyst Matthew Kanterman. Gamers are increasingly spending their time (and therefore money) on just a handful of games. The world of a title such as Red Dead Redemption — made by Take-Two — is so rich, it offers as much as 80 hours of gameplay before the gamer even has to think about going online to compete against other players. That means its fans have little incentive to splash out on other games.The upshot is that, by May, Take-Two had sold 24 million copies of Red Dead Redemption, just seven months after its release. That’s five million units more than all of Ubisoft’s titles combined in the entire last fiscal year.Were Ubisoft to focus its resources, then it might expect to improve the quality of its games. The most recent release — the first-person shoot-em-up “Tom Clancy’s Ghost Recon: Breakpoint” — has a score of 58 out of 100 on Metascore, a website that aggregates user and critic reviews to rate games. For a game to sell well, it usually needs a rating of 80 or more, Mirabaud Securities analyst Neil Campling reckons.Disappointing sales of Ghost Recon have prompted the Ubisoft rethink. By pushing back the release dates for “Gods & Monsters,” “Tom Clancy’s Rainbow Six Quarantine” and “Watch_Dogs Legion,” Ubisoft Chief Executive Officer Yves Guillemot will be able to dedicate engineers to improving Ghost Recon with patches. But he’s also buying time to avoid a repeat of that misstep with the other titles. After all, the company insisted the game tested well. Clearly there was something wrong with its data.The lackluster response to Ghost Recon and The Division 2, plus the delays, prompted Ubisoft to say that net bookings for the 12 months through March would be 1.5 billion euros ($1.7 billion), below its earlier forecast for 2.2 billion euros. It now expects adjusted operating income for between 20 million and 50 million euros, down from 480 million euros.Concentrating on a few blockbusters that could sell close to 20 million copies apiece in their first year might also make it easier to create an ecosystem around titles like Ghost Recon or Assassin’s Creed — a thriving community of regular players, willing to spend more money on upgrades. That bolsters higher-margin recurring revenue.The concern remains that, while it’s delaying some games for now, Ubisoft will persist with the strategy of releasing half a dozen major titles a year. It might not quite be game over, but it would be a mistake.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Investing.com - Electronic Arts (NASDAQ:EA) reported second quarter earnings that beat analysts' expectations on Tuesday and revenue that topped forecasts.
The NCAA board voted to allow college athletes to get paid for the use of their names, images, and likenesses; the move would usher in a sea change in college athletics, but will also be complicated to regulate.
It is gearing up to be a busy week with plenty of events with market-moving potential including the October jobs report, Q3 GDP, Federal Open Market Committee (FOMC) meeting and a deluge of earnings reports.
Electronic Arts (EA) second-quarter fiscal 2020 results are expected to benefit from growth in live services aided by strength in gaming portfolio amid stiff competition.
(Bloomberg) -- Riot Games, which spent the past decade relying on one product, is finally looking to expand.The Los Angeles-based creator of League of Legends said Tuesday it’s working on six new games. They include Wild Rift, a version of its flagship title for mobile and console devices that will debut next year, and Legends of Runeterra, an online card game featuring the company’s universe of characters.The bigger portfolio, which will include shooter, fighting and adventure titles, means more competition for giants such as Activision Blizzard Inc. and Electronic Arts Inc. It’s also a growth opportunity for Riot Games’ parent, Chinese internet giant Tencent Holdings Ltd., which has seen its game revenue and online ad businesses in China soften.League of Legends generated $1.4 billion in revenue last year, according to Nielsen’s SuperData Research. Over 100 million people play the game, which takes place in a fantasy world of battling demigods and dragons. At one point in August, more than 8 million were playing at once, the company said, setting a worldwide record for computer games.That makes this a good time to expand, according to company co-founder Marc Merrill.“League of Legends started as this tiny, kind of janky game, and has evolved into this global phenomenon,” Merrill said in an interview. “‘We view the next 10 years, all these games coming, as sort of the proof point. Is this crazy idealism that led to this company? Is that what people really want?”Several of the new games will be based in the League of Legends universe. A second, new mobile game is a spinoff of a current League of Legends mode called Teamfight Tactics, where players battle seven opponents on a rotating basis. The company is also creating an animated video series featuring its characters, for an outlet that has yet to be determined.Riot has taken its time developing new products to create games that differ from its lone product and those of competitors, Merrill said.Unlike League of Legends, which can take more than an hour to play, the mobile versions are designed to run 20 minutes. The shooting game is being engineered to thwart aimbots -- outside software that gives an unfair advantage to players who use them.The new-product announcements, made during an hourlong webcast, are part of a 10-year anniversary celebration for League of Legends. The bash includes matches featuring some of the game’s original players, special gifts for online fans and the introduction of a new warrior, Senna, whom fans know since she’s been trapped in a lantern in the game for years.Riot Games was founded in 2006 by Merrill and Brandon Beck, two former University of Southern California classmates. They were dissatisfied with the industry model of releasing new versions of games once a year.They developed a title that’s free to play and updated regularly with new characters and experiences. Riot makes money when players purchase gear in the game, such as costumes for characters. Prices range from $4 to $25.In League of Legends, two teams of five players compete to destroy the other side’s crystal-shaped nexus. The characters, which have their own powers, battle each other and waves of foot soldiers, called minions.In Legends of Runeterra, which enters beta testing this month, players won’t be required to purchase packs of random cards, as they do in other games, such as Activision’s Hearthstone. Instead, Runeterra will be free to play, with contestants choosing what to purchase.“Unless we’re going to do something that we think is really going to elevate the experience, let’s not bother to do it,” Merrill said of Riot’s philosophy.Merrill and Beck sold the company to Tencent in a pair of transactions that began in 2011 because their original investors wanted out and the two didn’t want to pursue a public offering. Merrill and Beck share management decisions, along with Chief Executive Officer Nicolo Laurent, who’s been there for 10 years. Merrill describes himself as more of the product developer, while Beck is the corporate strategist.“We would have made a terrible public company,” Merrill said. “We are pretty idealistic. We’re also very long-term or have attempted to be very long-term.”All has not always been sunny with Tencent. After unsuccessfully prodding Riot to launch a mobile game, Tencent in 2017 introduced its own, Arena of Valor, with characters that look like those in League of Legends.Merrill describes that as a “trying time in the relationship,” but adds that the parties have since reconciled.Today, Riot has more than 2,500 employees and two dozen offices around the world. Its headquarters are a triumph of nerd whimsy, with giant statues of League of Legends characters and a piratey coffee shop named after one of the cities in the game, Bilgewater Brews.Riot is a pioneer in esports, where fans watch pros play online and in arenas. Two years ago, the company sold 10 North American League of Legends franchises for $10 million each. Its annual World Championship, held in November, is considered the Super Bowl of esports, with fans selling out stadiums.Merrill said it’s too soon to say if any of the new games will turn into professional competitions. “We don’t decide if something is an esport, the community does,” he said. On Friday, the company weighed into the controversy over Hong Kong protests, saying its esports broadcasters and players must refrain from discussing politics and other sensitive topics.In recent months, the company has also wrestled with discontent among some Rioters, as employees call themselves. Over the past year, a number of former female employees sued the company, alleging gender discrimination in pay and promotion, and sexual harassment. In May, dozens of employees demonstrated in the company quad over the “bro-like” culture and clauses in their contracts that require them to settle workplace complaints through arbitration.The company settled the suits in August for undisclosed terms. It has also added a chief diversity officer and said it would focus on greater workplace inclusion.Merrill said the past year was a “challenging period” for him and the company, but also a moment of reflection and change.“There’s a lot of defining moments as companies evolve and grow,” he said. “The optimist in me says that this will be one for Riot.”(Corrects spelling of Fortnite in chart of story that ran on Oct. 15)To contact the reporter on this story: Christopher Palmeri in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Rob Golum, Sam HallFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Electronic Arts (NASDAQ:EA) led a wave of red across video game stocks Friday on data showing gamers held back on spending in September as they await the next generation of consoles slated for next year.
Today we will run through one way of estimating the intrinsic value of Electronic Arts Inc. (NASDAQ:EA) by projecting...
Seton Hall Sports Poll finds that 60% of people say student athletes should be allowed to profit from the use of their name, likeness, or image.
Activision Blizzard (ATVI) is expected to benefit from Call of Duty franchise strength following the launch of Black Ops 4's new content season.