The stock prices of Electronic Arts Inc (EA) has risen by over 2% till the end of the morning trading session on Thursday. Since the starting of this week, this stock has seen a rise in its price; having gone up over 3.40% since Monday. The stock still continues to rise. Since yesterday’s close at $80.83, the stock has gone up by over 2% to cross $82.5.
The California based company is also known as EA Games, is an American developer, marketer, publisher, and distributor of video games. Founded and incorporated on May 28, 1982 by Trip Hawkins, the company was a pioneer of the early home computer games industry and was notable for promoting the designers and programmers responsible for its games. As of 2014, Electronic Arts was the world’s fourth-largest gaming company by revenue after Tencent, Sony and Microsoft.
Electronic Arts’ CEO, Andrew Wilson said, “Mobile is the fastest-growing part of our business, and mobile devices are the biggest gaming platforms on the planet. What we’ve been doing is taking a portfolio approach to it, really trying to figure out what sports means on mobile, what driving means on mobile, what first-person shooters or action/adventure means on mobile.”
Believing the inclination of the gaming community across the board will be for amazing entertainment, Wilson says players will align themselves with brands they know will deliver on their expectations for content, and he feels EA is poised to capitalize.
“Every time you get a new device, platform, or technology that enhances the game play experience, we see a pretty rapid uptake in that. But, you need innovative technology, profound user proposition, and a low barrier to entry. Right now, as it relates to VR, mobile is the lowest barrier to entry. The user proposition probably isn’t as profound as its going to be, but we believe that’s going to be an important part,” Wilson explained.
Currently, EA develops and publishes games under several labels including EA Sports titles FIFA, Madden NFL, NHL, NCAA Football, NBA Live, and SSX. Other EA labels produce established franchises such as Battlefield, Need for Speed, The Sims, Medal of Honor, Command & Conquer, as well as newer franchises such as Crysis, Dead Space, Mass Effect, Dragon Age, Army of Two, Titanfall and Star Wars: Knights of the Old Republic, produced in partnership with LucasArts.
Our analysts believe that the stock price of Electronic Arts would further increase as it shows great potential and the market response has been positive towards it. They have given a “HOLD” rating to the stock and have advised the current holders of this stock to not sell it at this moment. They have also advised traders who are looking to buy this stock to wait and buying it in its rising stage might not be profitable.