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EA's stock hits its highest ever value, company worth $45.5 billion

Nirolak

Nirolak

Member
Oct 25, 2017
5,660
I noticed a lot of stock threads lately, so I thought there would be interest in this one.

It's driven by generally strong financial results of late, along with an analyst upgrade on their unsecured debt rating, though they did also buy a new mobile studio recently.

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Source: https://finance.yahoo.com/quote/EA/

For the curious, in terms of market cap:

Activision Blizzard: $61.8 billion
Electronic Arts: $45.5 billion
Nintendo: $38.5 billion
Take-Two: $14.5 billion
Ubisoft: $13 billion
Bandai Namco: $8.8 billion
Konami: $6.5 billion
Square Enix: $5.5 billion
Sega Sammy: $3.8 billion
Capcom: $2.5 billion
Koei Tecmo: $1.95 billion

I excluded Sony ($66.2 billion) and Microsoft ($800.1 billion) since they're conglomerates with very large portions of their income from non-gaming. ZeniMax/Bethesda is a private company.
 
Solobbos

Solobbos

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Oct 27, 2017
1,838
Yet my excitement for EA IPs is at an all time low. More power to them, though. They are making mad cash and that's what they are in the business for.
 
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Nirolak

Nirolak

Member
Oct 25, 2017
5,660
TheAvatar said:
What made their stock rise so rapidly?
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That's a chart from 1989 until now, but the recent rise has been due to the success of their live services.

EA doesn't even need their frontline non-annual games to sell well anymore. Battlefield V + Anthem are expected to be less than 25% of their revenue for the next fiscal year, with the rest coming from sports and ongoing revenue from service games.
 
Daitokuji

Daitokuji

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Oct 27, 2017
2,602
I remember some guy made a long video on youtube about how so much of EA's value was tied up in loot boxes for Madden and FIFA and that when the lootbox craze crashed then so would EA's stock (this was when it was trading in the ~$120s range). I guess he was wrong.
 
Derrick01

Derrick01

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Oct 25, 2017
7,289
People really love the generic slop they churn out but I guess it only makes sense since their market research and focus groups told them what influences people the easiest.
 
darkside

darkside

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Oct 26, 2017
11,397
Serious question, if a large percentage of their revenue is from their annualized sports games why don't these license holders charge -way- more for their licenses? Feel like other companies would want to jump at the chance to get exclusive licensing (or even non-exclusive) of sports leagues given the opportunity considering how much money EA makes on it
 
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Nirolak

Nirolak

Member
Oct 25, 2017
5,660
darkside said:
Serious question, if a large percentage of their revenue is from their annualized sports games why don't these license holders charge -way- more for their licenses? Feel like other companies would want to jump at the chance to get exclusive licensing (or even non-exclusive) of sports leagues given the opportunity considering how much money EA makes on it
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They do charge a lot! It's also likely they have some amount of revenue sharing.

They also don't want to shake up a good thing. NCAA died over their licensing changes, and MLB games are tiny compared to other sports after Take-Two's bad licensing deal caused Take-Two's MLB business to implode.
 
SprachBrooks

SprachBrooks

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Oct 28, 2017
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Man, Microsoft's market cap dwarfs Sony's when you consider the companies as a whole.

Take-Two always surprisingly low when you keep looking at how well GTA sells. Then again, all else they publish tends to be very very average in comparison.
 
Kittens McMittens

Kittens McMittens

Member
Nov 14, 2017
4,928
Daitokuji said:
I remember some guy made a long video on youtube about how so much of EA's value was tied up in loot boxes for Madden and FIFA and that when the lootbox craze crashed then so would EA's stock (this was when it was trading in the ~$120s range). I guess he was wrong.
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Loot box craze hasn't really crashed though. It's looking like we're (hopefully) at a high water mark, at least when it comes to AAA PC/console titles, but Madden and FIFA loot boxes still do gangbusters.
 
Mona

Mona

Banned
Oct 30, 2017
26,151
Daitokuji said:
I remember some guy made a long video on youtube about how so much of EA's value was tied up in loot boxes for Madden and FIFA and that when the lootbox craze crashed then so would EA's stock (this was when it was trading in the ~$120s range). I guess he was wrong.
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the lootbox craze isn't even remotely close to crashing yet

most people who play video games are perfectly fine with them
 
Rocco

Rocco

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Oct 27, 2017
1,330
Texas
But but but, Era hates EA because they make GaaS? Dont investors know? Dont they take this into account?
 
Loan Wolf

Loan Wolf

Member
Nov 9, 2017
5,109
EA Sports is helping their value go up, guessing the success of the FIFA World Cup promotion and reintroduction to Madden on PC helped with that too.
Curious to see how hard their stock will fall though once the recession hits.
 
Ray Barata

Ray Barata

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Jan 4, 2018
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SprachBrooks said:
Man, Microsoft's market cap dwarfs Sony's when you consider the companies as a whole.

Take-Two always surprisingly low when you keep looking at how well GTA sells. Then again, all else they publish tends to be very very average in comparison.
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No doubt on the MS number. They're in the running to hit $1 Trillion in market cap, with gaming revenue continually rising. They'll surpass Amazon and AWS in total revenue in the Cloud business this quarter. And it seems MS is now really focused, at least more than before as a company, in a complete gaming ecosystem.
 
TCi

TCi

The Fallen
Oct 25, 2017
661
Looks like they are struggling, so I guess more MTX is needed in those $60 games. /s

Isn't Fifa at $8 billion annually or so?
 
TelluricTokoro

TelluricTokoro

Banned
Apr 16, 2018
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SprachBrooks said:
Man, Microsoft's market cap dwarfs Sony's when you consider the companies as a whole.

Take-Two always surprisingly low when you keep looking at how well GTA sells. Then again, all else they publish tends to be very very average in comparison.
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When you stop to think about it, it's crazy how there's really only a handful of companies around with comparable market cap to MS lol
 
Tetra-Grammaton-Cleric

Tetra-Grammaton-Cleric

user requested ban
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Oct 28, 2017
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Derrick01 said:
People really love the generic slop they churn out but I guess it only makes sense since their market research and focus groups told them what influences people the easiest.
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This is the most recent EA game I purchased:

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I certainly wouldn't call it 'generic slop.'

Also, UFC 3 is fantastic, assuming you're a fan of the sport.

That said, they can definitely afford to take more chances, all things considered.
 
Qwark

Qwark

Member
Oct 27, 2017
8,092
I really don't understand stock changes. EA off of a terrible E3 goes up, while Capcom off of a super successful Monster Hunter goes down.

I guess what I value isn't all that valuable in the big picture.

Edit: I was mostly being rhetorical, but thanks for the replies everybody. I know I'll never be an investor, lol.
 
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Nirolak

Nirolak

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Oct 25, 2017
5,660
Evolution of Metal said:
Does that include mobile?

I cannot think of the games other than Fifa/Madden which are actually selling microtransactions for EA.

TF2, BF2, BF1, NFS either have undesirable lootbox content, or no playerbase.
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$700 million is mobile.

Ultimate Team is a lot of the $2 billion, though to be clear it's "live service revenue", so it includes DLC (which is where Battlefield contributes a lot).
 
Quinton

Quinton

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Oct 25, 2017
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Midgar, With Love
Good thread. I appreciate the insight.

As for the subject at hand, well... I, uh... I'll just keep praying DA4 mostly plays like its predecessors. :)
 
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