E3 Is Here. Game On!

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Includes: ATVI, EA, GLUU, GME, ZNGA
by: Kapitall

By Mary-Lynn Cesar

It's the event gamers look forward to each year. E3, the showcase for new video games and tech, has arrived.

Los Angeles may be the epicenter for television and film, but from June 14-16, the City of Angels is all about video games. E3, short for Electronic Entertainment Expo, is the video game industry's biggest event of the year, and it's currently underway in L.A.

Although E3 didn't officially kick off until Tuesday, some companies decided to hold some press conferences prior to the event. The most exciting prE3 news came from Microsoft (NASDAQ:MSFT) on Monday, when the company revealed its newest piece of hardware: codename Project Scorpio. The newest member of the Xbox family, Scorpio boasts a CPU so powerful that it's capable of supporting 4K, 60-frames-per-second gaming as well as virtual reality. Microsoft plans to ship the console during the 2017 holiday season.

Even before Microsoft got tongues wagging at its upcoming hardware, Elon Musk excited the gamer community last week when he recommended Activision Blizzard (NASDAQ:ATVI) subsidiary Blizzard Entertainment's Overwatch to the Twittersphere. As The Verge points out, it's not entirely surprising that Musk enjoys the first-person shooter game; after all, the game pits humans against artificial intelligence (namely in the form of sentient robots) in the war for dominance - a serious concern of Musk's.

All of this gaming talk inspired the following list of video game stocks (including a retailer), which features each stock's revenue growth over the past two years and its estimated full-year revenue for the current fiscal year. For some of these stocks, the estimated revenue is non-GAAP (generally accepted accounting principles) - an alternative set of standards used to produce a company's financial statements.

Click on the interactive chart to view data over time.

  1. Activision Blizzard Inc.: Publishes online, personal computer (PC), console, handheld, and mobile games of interactive entertainment worldwide. Its market cap is at $27.90 billion, and the most recent closing price is at $37.63.

    For the year ending December 2014, Activision Blizzard's revenue totaled $4.41 billion, a 3.72% decrease from the $4.58 billion reported a year earlier.

    For the year ending December 2015, revenue totaled $4.67 billion, a 5.90% increase from the prior year.

    Analysts estimate non-GAAP revenue for the year ending December 2016 to total $6.32 billion, a 36.70% increase from 2015's non-GAAP revenue of $4.62 billion.
  2. Electronic Arts Inc. (NASDAQ:EA): Develops, markets, publishes, and distributes game software and content for video game consoles, personal computers, mobile phones, tablets and electronic readers, hand held game players, and the Internet. Its market cap is at $22.42 billion, and its most recent closing price is at $74.24.

    For the year ending March 2015, EA's revenue totaled $4.52 billion, a 26.26% increase from the $3.58 billion reported a year earlier.

    For the year ending March 2016, revenue totaled $4.4 billion, a 2.65% decrease from the prior year.

    Analysts estimate non-GAAP revenue for the year ending March 2017 to total $4.92 billion, a 7.8% increase from fiscal year 2016's non-GAAP revenue of $4.57 billion.
  3. GameStop Corp. (NYSE:GME): Operates as a retailer of video game products and personal computer (PC) entertainment software. The company's market cap is at $2.65 billion, and the most recent closing price is at $26.03.

    For the year ending January 2015, GameStop's revenue totaled $9.3 billion, a 2.88% increase from the $9.04 billion reported a year earlier.

    For the year ending January 2016, revenue totaled $9.36 billion, a 0.65% increase from the prior year.

    Analysts estimate revenue for the year ending January 2017 to total $9.42 billion, a 0.60% increase from fiscal year 2015's revenue of $9.36 billion.
  4. Glu Mobile Inc. (NASDAQ:GLUU): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Its market cap is at $293.53 million, and its most recent closing price is at $2.22.

    For the year ending December 2014, Glu Mobile's revenue totaled $223.15 million, a 111.30% increase from the $105.61 million reported a year earlier.

    For the year ending December 2015, revenue totaled $249.90 million, an 11.99% increase from the prior year.

    Analysts estimate non-GAAP revenue for the year ending December 2016 to total $219.90 million, a 12.0% decrease from 2015's revenue non-GAAP revenue of $242.24 million.
  5. Zynga, Inc. (NASDAQ:ZNGA): Develops, markets, and operates social games as live services played on the Internet, social networking sites, and mobile platforms around the world. Its market cap is at $2.25 billion, and its most recent closing price is at $2.54.

    For the year ending December 2014, Zynga's revenue totaled $690.41 million, a 20.94% decrease from the $873.27 million reported a year earlier.

    For the year ending December 2015, revenue totaled $764.72, a 10.76% increase from the prior year.

    Analysts estimate non-GAAP revenue for the year ending December 2016 to total $745.86 million, a 6.60% increase from 2015's non-GAAP revenue of $699.96 million.

(Monthly return data sourced from MOD. Revenue data sourced from Yahoo Finance. All other data sourced from FINVIZ.)