Chandler Lutz

Electronic Arts: This Stock Isn't Playing Games

Nice Article! I think the sports franchise is quite important to EA, but I honestly don't know anyone who buys an update of the game every year. The number of features on those just aren't drastic enough to warrant purchases by recession conscious consumers. Also, I still don't think that EA has Blockbuster game in the pipeline to really drive sales. Maybe the new video game Spore can save them, but that game has seen numerous delays and since EA is trading at such a high multiple to forward earnings it seems as if a lot of growth is priced into the stock. If the stock becomes super cheap over the summer (definitely less than 25 forward earnings) and the geeks think spore will be as cool as everyone hopes it will be then I will give the company a look...