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If You Invested $1000 in Electronic Arts 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Electronic Arts (EA - Free Report) ten years ago? It may not have been easy to hold on to EA for all that time, but if you did, how much would your investment be worth today?
Electronic Arts' Business In-Depth
With that in mind, let's take a look at Electronic Arts' main business drivers.
Headquartered in Redwood City, CA, Electronic Arts is a leading developer, marketer, publisher and distributor of interactive games (video game software and content).
Electronic Arts, popularly known as EA, distributes its gaming content and services through multiple distribution channels as well as directly to consumers (online and wirelessly) through its online portals — Origin and Play4Free.
EA games can be played on video consoles, personal computers, mobile devices, tablets and electronic readers. The company generates revenues from the sale of disk-based video game products (known as packaged goods), downloadable contents (DLCs), subscription, micro-transactions and advertising.
EA generated revenues of $5.62 billion in fiscal 2021, of which live services and other revenues contributed 74% and the remaining were generated from packaged goods and full game downloads.
Net bookings for fiscal 2021 was $6.19 billion, up 15% year over year, and over $600 million above original expectations.
EA delivered 13 new games in fiscal year 2021, and welcomed more than 42 million new players to its network of more than 500 million unique accounts.
The company operates in three divisions — EA Studios, Maxis and EA Mobile. EA Studios includes DICE (Sweden), EA Canada (Canada), Tiburon (the United States), BioWare (Canada and the United States) and Visceral (the United States).
EA faces substantial competition from console and personal computer game publishers and diversified media companies that include Sony, Microsoft, Nintendo, Activision Blizzard, Take-Two Interactive and Ubisoft. In the mobile and social gaming market, the company competes with Zynga.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Electronic Arts, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in September 2011 would be worth $6,613.60, or a gain of 561.36%, as of September 3, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 286.46% and gold's return of -4.85% over the same time frame.
Analysts are anticipating more upside for EA.
EA’s first-quarter fiscal 2022 results benefited from continued strength in live services, primarily driven by Mass Effect Legendary Edition and It Takes Two. This was offset by decline in full-game revenues. EA witnessed rise in usage and engagement levels for its games including Apex Legends Season 9, FIFA 21, FIFA Ultimate Team, Madden NFL 21 and The Sims 4 while new games like Medal of Honor: Above and Beyond and Need for Speed Hot Pursuit Remastered continue to gain momentum. EA has a strong slate of game releases for the rest of fiscal 2022, which are expected drive its top line further. Notably, shares of EA have outperformed the industry in the year to date period. However, stiff competition from the likes of Activision and Take-Two Interactive is a significant headwind.
The stock is up 6.23% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2021. The consensus estimate has moved up as well.
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If You Invested $1000 in Electronic Arts 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Electronic Arts (EA - Free Report) ten years ago? It may not have been easy to hold on to EA for all that time, but if you did, how much would your investment be worth today?
Electronic Arts' Business In-Depth
With that in mind, let's take a look at Electronic Arts' main business drivers.
Headquartered in Redwood City, CA, Electronic Arts is a leading developer, marketer, publisher and distributor of interactive games (video game software and content).
Electronic Arts, popularly known as EA, distributes its gaming content and services through multiple distribution channels as well as directly to consumers (online and wirelessly) through its online portals — Origin and Play4Free.
EA games can be played on video consoles, personal computers, mobile devices, tablets and electronic readers. The company generates revenues from the sale of disk-based video game products (known as packaged goods), downloadable contents (DLCs), subscription, micro-transactions and advertising.
EA generated revenues of $5.62 billion in fiscal 2021, of which live services and other revenues contributed 74% and the remaining were generated from packaged goods and full game downloads.
Net bookings for fiscal 2021 was $6.19 billion, up 15% year over year, and over $600 million above original expectations.
EA delivered 13 new games in fiscal year 2021, and welcomed more than 42 million new players to its network of more than 500 million unique accounts.
The company operates in three divisions — EA Studios, Maxis and EA Mobile. EA Studios includes DICE (Sweden), EA Canada (Canada), Tiburon (the United States), BioWare (Canada and the United States) and Visceral (the United States).
EA faces substantial competition from console and personal computer game publishers and diversified media companies that include Sony, Microsoft, Nintendo, Activision Blizzard, Take-Two Interactive and Ubisoft. In the mobile and social gaming market, the company competes with Zynga.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Electronic Arts, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in September 2011 would be worth $6,613.60, or a gain of 561.36%, as of September 3, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 286.46% and gold's return of -4.85% over the same time frame.
Analysts are anticipating more upside for EA.
EA’s first-quarter fiscal 2022 results benefited from continued strength in live services, primarily driven by Mass Effect Legendary Edition and It Takes Two. This was offset by decline in full-game revenues. EA witnessed rise in usage and engagement levels for its games including Apex Legends Season 9, FIFA 21, FIFA Ultimate Team, Madden NFL 21 and The Sims 4 while new games like Medal of Honor: Above and Beyond and Need for Speed Hot Pursuit Remastered continue to gain momentum. EA has a strong slate of game releases for the rest of fiscal 2022, which are expected drive its top line further. Notably, shares of EA have outperformed the industry in the year to date period. However, stiff competition from the likes of Activision and Take-Two Interactive is a significant headwind.
The stock is up 6.23% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2021. The consensus estimate has moved up as well.