EA - Electronic Arts: Milking Instead Of Sowing

2024-06-18 17:06:52 ET

Summary

• EA is highly profitable and its valuation seems to be fair.
• EA's franchises including a wide range of Sports games, The Sims, Need For Speed, and Battlefield are well known.
• However, the company appears stagnant which is also evident by almost 100% of cash returned to shareholders.
• Historically, the company's questionable strategies have left an unpleasant aftertaste and have earned EA the reputation as The Most Hated Company.
• For me, EA appears to be only milking, while I want companies to sow seeds as well.

Previous Gaming Coverage

You might skip this overview in case you only want to read about Electronic Arts (EA). Nevertheless, I would like to point out that I have already covered the gaming sector in my few months as an analyst on Seeking Alpha to draw your attention to other potentially interesting articles in the Gaming sector....

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