Electronic Arts is ready for mobile

Article Excerpt

Pandemic lockdowns gave the video game industry a big boost. Its long-term outlook is also positive as publishers shift from selling computer games for a one-time upfront fee to making level-one games free. That hurts short-term sales, but at the same time boosts long-term revenue as players increasingly purchase in-game digital goods such as weapons, costumes, enhanced avatars and access to higher levels. Meanwhile, Electronic Arts is acquiring a mobile games leader to quickly gain a big share of the fastest-growing segment of the videogame market. That adds to its already bright future, and we recommend this stock as a Power Buy. ELECTRONIC ARTS, $130.60, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 287.6 million; Market cap: $37.9 billion; Dividend yield: 0.5%) makes video games for a variety of devices, including computers, consoles (such as the Sony PlayStation, Microsoft Xbox and Nintendo Switch) and mobile devices (including phones and tablets). Its games sell around the world. The company now…