Topic: How To Invest

Pat: What is your opinion on video game stock Electronic Arts? Thanks.

Article Excerpt

Electronic Arts Inc., $62.54, symbol EA on Nasdaq (Shares outstanding: 309.3 million; Market cap: $19.5 billion; www.ea.com), makes video games for a variety of devices, including computers, consoles (such as the Sony PlayStation, Microsoft Xbox and Nintendo Wii) and mobile devices (including the iPhone and iPad). The company sells a number of sports-based titles that get reissued every year. It has licensing deals with most major professional sports organizations, including the National Football League, National Basketball Association, National Hockey League, FIFA (soccer) and PGA Tour (golf). Electronic Arts also develops its own game franchises and constantly releases sequels and new versions that give it ongoing revenue. Top-selling examples include The Sims (a life-simulation game), Need for Speed (car racing), Battlefield (war), Plants vs. Zombies (strategy) and Dragon Age (a fantasy role-playing game). In addition, Electronic Arts makes games based on popular movies such as Star Wars. The company’s games sell around the world. It now gets over 50% of its revenue from outside…