In this article, we will be looking at the 5 best gaming stocks to buy now. To see our detailed analysis of the video game industry, you can go directly to see the 11 Best Gaming Stocks to Buy Now.
5. Electronic Arts Inc. (NASDAQ: EA)
Number of Hedge Fund Holders: 44
Electronic Arts Inc. (NASDAQ: EA) is a developer of games, content, and services for gaming consoles, computers, phones, and tablets across the globe. Some of its brands include Battlefield, The Sims, Need for Speed. The company ranks 5th on our list of the best gaming stocks to buy now.
Electronic Arts Inc. (NASDAQ: EA) announced on June 9th that Battlefield 2042 is set to launch by October 22nd, and on June 23rd, the company also mentioned its acquisition of Playdemic from WarnerMedia for $14 billion. In its fiscal fourth quarter of 2021 report, Electronic Arts Inc. (NASDAQ: EA) had an EPS of $1.23, beating estimates by $0.18. The company’s revenue was $1.49 billion, up 22.84% year over year and beating estimates by $95.28 million. It has a gross profit margin of 73.46% and the stock has gained 0.35% in the past 6 months and 3.29% year to date.
By the end of the first quarter of 2021, 44 hedge funds held stakes in Electronic Arts Inc. (NASDAQ: EA) worth roughly $14.3 billion. This is compared to 50 hedge fund holders in the previous quarter with a total stake value of approximately $10.5 billion.
“Video game publisher Electronic Arts (EA) has recently experienced muted performance relative to peers. The company is expanding its moat as COVID-19 pulled forward gamer engagement in 2020 and early 2021. While we expect current growth rates will slow, the long-term value of the company’s user community has increased. EA’s net cash balance sheet and industry leadership fit well with our philosophy and process, and while the recently acquired Codemasters and GLUU Mobile will draw down cash, the balance sheet remains strong and the deals further EA’s mobile growth strategy. We believe our stake in EA represents how we can think opportunistically to build an eclectic, idiosyncratic portfolio to deliver value over the long term.”