Glaxis Capital Betting Big On Video Games

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In Electronic Arts Inc. (NASDAQ:EA), Glaxis raised its stake by 50% to 15,000 shares worth $1.77 million during the third quarter. Electronic Arts Inc. (NASDAQ:EA)’s stock has advanced by nearly 50% since the beginning of the year as the company delivered strong revenue growth and better-than-expected results for the past three quarters. The company recently released FIFA 18, which was well received. For example, in the UK, the game has been holding the number one spot for the last three consecutive weeks. Electronic Arts Inc. (NASDAQ:EA) is also expected to release Star Wars Battlefront II and Need For Speed: Payback next month.

Next in line is Activision Blizzard, Inc. (NASDAQ:ATVI), in which Glaxis boosted its holding by 763% over the quarter, having amassed 43,180 shares valued at $2.79 million at the end of September. Activision Blizzard, Inc. (NASDAQ:ATVI)’s stock has surged by 71% year-to-date, helped by a jump on February 9 on the back of the company reporting a record fourth-quarter, which included better-than-expected results and the announcement of a $1 billion share buyback program. Gamers are currently waiting for Call of Duty WWII, which is the most wanted game for Christmas, and which is expected to revitalize the cash cow that the Call of Duty franchise is for Activision Blizzard, Inc. (NASDAQ:ATVI). The company also released Destiny 2 in September, although analysts estimate that its sales are lower than that of the previous iteration, which was released in 2014.

During the third quarter, Glaxis Capital added chipmaker Applied Materials, Inc. (NASDAQ:AMAT) to its equity portfolio, as it initiated a stake containing 54,160 shares worth $2.82 million. Even though Applied Materials, Inc. (NASDAQ:AMAT)’s stock has almost doubled in value over the last 12 months, it’s still trading at a forward earnings multiple of just 15, which suggests that the stock is still a buy. Last month, Applied Materials, Inc. (NASDAQ:AMAT) provided its three-year guidance during its Analyst Day. The company expects non-GAAP adjusted EPS of $5.08 for fiscal 2020, which is almost double compared to the $2.81 EPS for the trailing twelve months.

Finally, Microsoft Corporation (NASDAQ:MSFT) represents Glaxis’ largest position in terms of value as of the end of September. The fund boosted its position in the company by nearly 200% to 151,590 shares valued at $11.29 million during the July-September period. Microsoft Corporation (NASDAQ:MSFT) is well positioned to enjoy growth from its main drivers like Office 365 and Azure PaaS. In addition, Microsoft also has the second-best selling gaming console, Xbox One, although it is behind Sony Corp (ADR) (NYSE:SNE)’s PS4 by a wide margin according to estimates. Microsoft Corporation (NASDAQ:MSFT) is also betting big on virtual and augmented reality. It recently showcased its Windows Mixed Reality headsets and is about to release its Halo: Recruit game made for Windows Mixed Reality.

Disclosure: None

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