Electronic Arts Stock Shows Once Again Why It Belongs in Your Portfolio
The video game industry is going through a downcycle in 2022. A combination of restricted supply for new gaming consoles and a reversion to long-term trends has industry spending slightly down in 2022. For example, the NPD Group estimated that in the third quarter, total video game spending in the U.S. was down 5% year over year.
But not all gaming companies are feeling the crunch equally. Enter Electronic Arts (NASDAQ: EA), a leading sports and live-services game publisher that continues to put up consistent financial results. Here's why Electronic Arts deserves a spot in your portfolio today.
EA reported its fiscal 2023 second-quarter earnings on Nov. 1. Due to the timing of game launches, its net bookings (the revenue equivalent metric for video game companies) were down 2% year over year in constant currency to $1.75 billion. Taking a longer view, bookings over the last 12 months were up 4% year over year to $7.38 billion and up 32% from two years ago. Clearly, EA is not feeling much of a hangover from the 2020 quarantine boost.
Source Fool.com
