Zynga Inc (ZNGA), Microsoft Corporation (MSFT), Electronic Arts Inc. (EA): It’s Game On for These Companies

Page 2 of 2

With Mr. Mattrick at the helm, and his proven track record in both Xbox and Electronic Arts Inc. (NASDAQ:EA), Zynga has a fighting chance to rebuild confidence in its user base and develop its future profit sources. Don’t sell out just yet.

It’s still in the game

If you’re still not ready to delve into social gaming, take a gander at the aforementioned Electronic Arts Inc. (NASDAQ:EA). Electronic Arts is best known for its line of highly successful sports games franchises and console gaming, although it boasts an extensive portfolio of hundreds of successful games on a multitude of platforms. Electronic Arts Inc. (NASDAQ:EA) has a massive user base and has built a devout following, and its paying off.

EA has posted consistent returns on investment and has built its digital offerings, phased its expenses and opened up cash flow to reinvest in the company. Electronic Arts Inc. (NASDAQ:EA)’s stock has grown over 120% in the past year with more room to grow. With a P/E ratio that’s high but, similar to its competitors EA still is a buy.

EA’s real strength is in its gaming portfolio. You can ask any gamer what franchises they play and can be almost 100% positive there is at least two EA titles in there. With such diversification in an otherwise saturated market, you can bet Electronic Arts Inc. (NASDAQ:EA) will continue to please the historically fickle consumers of video games.

The Foolish bottom line

Whether you are waiting in a midnight release line for the next Madden or have never touched a controller, these two gaming companies deserve to be looked at for their own reasons. Zynga Inc (NASDAQ:ZNGA), despite the doom and gloom surrounding it, has the potential to harness the leadership of a promising CEO, rebuild an ailing user base and develop its real money gaming ventures. Electronic Arts Inc. (NASDAQ:EA) can be your choice for a stable, established gaming company that has room to run yet and can deliver blockbuster titles year after year. For me, its game on for these two stocks.

The article It’s Game On for These Companies originally appeared on Fool.com and is written by Jacob Norte.

Jacob Norte has stock in Zynga Inc (NASDAQ:ZNGA). The Motley Fool has no position in any of the stocks mentioned. Jacob is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2