Electronic Arts Inc. (NASDAQ:EA) has never performed better. True, Electronic Arts stock has lost a bit—0.35%—in the past week, but EA stock is trading at $76.00 per share and that’s still within a few dollars of its all-time record. The slight loss last week is but a minor pothole in the path to unprecedented success. Electronic Arts stock will keep on trucking in 2016 and well into 2017, as Dave Dudley might sing.
The Next Big Thing for EA Stock Is Almost Here
The next big potential bullish shaker for Electronic Arts stock might come in the form of “Gamescom.” For 2016, EA is organizing its own event on the sidelines of the convention center in Cologne, Germany.
Gamescom is perhaps the world’s biggest event in the world for computer and video games. At the event, EA will launch its newest products. Players and reporters alike will have the chance to test EA’s games a day before Gamescom opens on August 17.
The conditions for EA stock’s success at Gamescom 2016 could not be better. The organizers are expecting new records both in terms of exhibitor numbers and sheer international presence. Indeed, thanks to exhibitors from about 50 countries, Gamescom 2016 will be the most international edition ever. Electronic Arts could not ask for a better platform to promote its products.
EA will launch Gamescom with an aptly named “Grand Opening.” Gamers will have access to the show via YouTube.
But Gamescom isn’t the only event affecting EA stock this year…
Intense Year Ahead for EA
Electronic Arts will have many highly anticipated games coming out in the next few months of 2016, including Titanfall, Battlefield 1, and FIFA 17, as well as several titles in the Star Wars series that may not have been formally announced yet. One of the most anticipated EA games of all, though, is FIFA 17. This is one of EA’s potential blockbusters for this year.
EA said that FIFA 17 will make its formal debut at “Insomnia 58” in Birmingham, U.K. (Source: “Play FIFA 17 early at Insomnia58,” Thumbsticks, July 30, 2016.) That event runs from August 26–28 and EA has decided to add some fanfare, giving gamers the chance to play FIFA 17 during the fair.
According to what EA has anticipated, FIFA 17 will mark a veritable revolution in the FIFA series. EA has adopted a new graphics engine, known as the “Frostbite” engine, which will relaunch the franchise with a completely different look. FIFA 17 is the first move to the Frostbite game engine. (Source: “FIFA 17 moves to Frostbite game engine,” Eurogamer.net, June 30, 2016.)
Electronic Arts has some other much-awaited games coming out and some recently released games gaining a lot of traction. One of these games is Battlefront, a game related to the Star Wars franchise. Battlefront has sold briskly and recently, thanks to a legal decision, its dominance is assured. Galaxy in Turmoil, a remake of Battlefront III developed by Frontwire Studios, has been blocked from sale and production. Lucasfilm, which owns the rights to the Star Wars franchise, demanded that Frontwire cease producing the game, as Electronic Arts holds the exclusive rights to produce Star Wars-themed video games. (Source: “Fan-made Star Wars Battlefront successor blocked by EA, Lucasfilm,” PC Gamer, August 1, 2016.)
EA Stock Is a Good Bet
Now, it is not necessary to know an EA game like your average tech geek to profit from EA stock. The point is simple enough: gaming is a big industry these days.
Just look at the success of the Pokémon Go. Heck, millions of people had no idea what these “creatures” were until Nintendo launched the “Pokémon Go” app, which millions of people downloaded to their smartphones in a matter of days. EA may have lost a little steam because it wasn’t the one to develop Pokémon Go, but nobody can compete with EA in sports-themed games.
Sports games get millions of downloads, too, just not in the same concentrated way as Pokémon Go. But, on the subject of numbers, here’s one that EA shareholders like: for the year ending in March 2016, EA boasted 26% higher earnings. Its strength is sports, but the boost has come from Star Wars. Given that another huge Star Wars blockbuster will be released before the end of 2016, EA can expect more reflected glory—and revenue. (Source: “The force is with EA: Stock spikes thanks to Star Wars,” CNBC, May 10, 2016.)
The Bottom Line on EA Stock
The bottom line on EA stock is simply bullish. No other gaming company can secure licenses with sports teams and popular movie franchises like Electronic Arts. This is the company’s main strength and with new products coming out over the next few months, there are plenty of reasons to remain bullish on EA stock.