Stock Market Sell-Off: Is Electronic Arts a Buy?
Video game producer Electronic Arts (NASDAQ: EA) makes some of the best-selling titles in the industry, particular its popular soccer title FIFA, which continues to deliver strong growth for the company. But not all of the company's games are delivering the growth investors expect. Over the last five years, the stock has been stuck in a trading range, underperforming the S&P 500 index return of 56%.
But investors have to look at the longer-term trends in EA's business and the broader gaming industry. Video game companies don't usually deliver smooth growth year to year, since higher revenue often depends on the timing of game releases and other initiatives a company might be working on. That said, there are a few reasons I believe EA stock could outperform the market from here.
EA's strategy is to make it as easy as possible for people to play its games. The company wants to make games for all platforms, but the console market is EA's largest revenue source, comprising 60% of the business.
Source Fool.com
