Tis Not The Season To Be Jolly At EA
Electronic Arts (EA) is not going to be singing jolly tunes this Christmas. Its lack of an appealing new line of console and PC games, coupled with a desperate attempt to recover players in its online games ,are shaping up to form a disappointing third and fourth quarter for the game producer.
EA develops, markets, publishes and distributes video games for use on platforms including video game consoles, PC and tablets and smartphones. Most notably, EA is behind the production of several big name video game franchises such as Battlefield and Mass Effect, and the major sports video game titles including the FIFA and NHL franchises. EA also owns PopCap Games Inc. and produces games for mobile devices and tablets under this brand.
1) The Current PictureEA is currently trading at $14.74, which is up from its 52 week low of $10.77. The price to earnings ratio on the shares is 1,506 which is well in excess of the S average of 14. There is an average Hold recommendation by analysts with a target share price of $15.