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Opinions Lorne Steinberg
Electronic Arts IncEATOP PICKJan 22, 2021
A secular growth story. One of the best in the space with amazing franchises. They have Madden, Fifa, Star Wars among others. They use their massive cashflow to buy back shares and increase their offering. They initiated a dividend during covid, which is compelling. The dividend should grow at a high rate for a long time. (Analysts’ price target is $149.08)
Lorne SteinbergOwned
$145.95
Stock price when the opinion was issued
$202.20
As of Jun 18, 2026. Market Open.
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Premium contentTOP PICK
Premium contentPAST TOP PICK
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate this top video game developer as a TOP PICK. With the 2022 World Cup starting, the release of FIFA 23 has been the largest launch in EA FIFA franchise history. The company is shifting more to a subscription revenue style that will add longevity. It has prudently been using some cash reserves to buy back shares. We recommend trailing up the stop-loss (from $100) to $114, looking to achieve $149 -- upside over 15%. Yield 0.5% (Analysts’ price target is $148.76)
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly This top video game developer has seen recent quarter sales be up 22% with recent releases of key game updates like FIFA 23 (the largest launch in EA FIFA franchise history). The company is shifting more to a subscription revenue style that will add longevity. It has been using some cash reserves to buy back shares. We recommend placing a stop-loss at $100, looking to achieve $151 -- upside over 26%. Yield 0.6% (Analysts’ price target is $150.64)
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TOP PICK
Growth in video games growing as more people use tools to communicate and socialize.
Added revenue streams with in-game purchases and upgrades to tools/guns etc.
Transition into metaverse with users playing video games.
Does not believe company is a legacy player within sector.
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PAST TOP PICK
(A Top Pick Jan 22/21, Down 12.6%) Revenues are still growing at a healthy pace. Good franchises. A major player. A core holding for him. More of a mature gaming company than a high growth stock. Good, solid, secular grower.
Lorne SteinbergOwned
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PAST TOP PICK
(A Top Pick Jan 22/21, Down 9%) Hit by tech selloff and the reopening. Revenues still growing at 10% per year. Compelling purchase here. In growth mode. Improving online margins.
Lorne SteinbergOwned
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BUY
Allan Tong’s Discover Picks With Activision Blizzard reeling from a recent sexual harassment lawsuit based on several claims and a report slamming it for incompetence in designing a key video game last year, shareholders of video game stocks are looking kindly upon names like Electronic Arts. Two weeks ago, EA reported and beat its guidance in Q1 revenues, bookings and EPS. On top of that, management raised its full-year outlook. EA bought back $325 million of shares in that quarter, bringing the 12-month total to $976 million (all figures in USD). The company continues to swim in cash at $1.413 billion for the trailing 12 months. Read 3 Growing Tech Stocks for our full analysis.
Stockchase DiscoverOwned
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WEAK BUY
The videogame space is exciting and it's changing rapidly. ATVI and Take Two are also good. These names can be lumpy because of release dates, but he prefers ATVI because of their titles like Call of Duty and for their eco-system. The next generation won't slow down on videogames (he has a 9-year-old who's good at games).
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BUY
Allan Tong’s Discover Picks EA stock remains profitable at 23.5%, though lower than ATVI's. Also like ATVI, EA's managing is betting on mobile gaming to grow the company. CFO Blake Jorgenson said that the company is “increasing the number of mobile titles we have in development.” Meanwhile, mobile games enjoyed a rise of 32% in bookings in Q1. Meanwhile, franchises like Madden saw a 140% spike in players YOY in fiscal Q1. Read 3 Epic Video Game Stocks to Play! for our full analysis.
Stockchase DiscoverOwned
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DON'T BUY
He owns Activision instead because it has a longer runway of growth due to its forthcoming games. It's traditionally been a toss-up between this and EA. It comes down to runway.
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COMMENT
He follows the gaming and e-sports space. He owns Take-Two instead of EA, thanks to the longer runway on the publishing side.
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COMMENT
This company has had a massive run from 2014 to where it is today. After 2008 the company was focusing on squeezing as much money as possible out of their games. About 2012 they got voted worst company in America by consumers. Then again in 2013 so it got management's attention. They changed the CEO and then the company took off. It pulled off recently because they are competing with some big players in the world.
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