![]() ![]() The top titles offered by Electronic Arts include FIFA, Apex Legends, Madden NFL, F1, PGA Tour, Battlefield Mobile and others that should be resistant to a recession as gamers are more likely to pull back on obscure, new-to-market titles than their longtime favorites, BofA wrote. The investment firm set a price objective on the stock of Electronic Arts at $155 a share and described the company’s franchises as the “consumer staples” of the video game industry due to its hardcore gamer communities and dominant brands. ![]() ![]() The company also is the “top pick” in a recession among video game stocks covered by BofA. The company has a strong customer base, and its revenues and earnings likely will be consistent regardless of what happens in the economy, he added. Key advantages for the favored PC category in a recession stem from monetization of hardcore gamers, primary entertainment, immersive and social game playing, while facing lower user acquisition risks than mobile competitors, BofA wrote.īob Carlson, head of the Retirement Watch newsletter, meets with Paul Dyk ewicz.Įlectronic Arts (NASDAQ: EA), a video game company headquartered in Redwood City, California, is a good choice for investors because more than half of its revenue comes from sports games, Carlson counseled. For that reason, investors would be wise to buy income-paying video game stocks that should capitalize on the obstacles, flashing lights and dramatic sound effects that entice users to play their favorites repeatedly while tightening their budgets in other ways.īofA wrote in a recent research note that it prefers personal computer (PC) and console video game exposure than mobile-oriented investments. With the Fed already having raised interest rates 0.75% in June, July and mid-September and warned of further hikes to curb an increase in the Consumer Price Index of 8.3% during the last 12 months, BofA Global Research is forecasting a 2023 recession scenario with video game sales falling 4-6%. Two dividend-paying video game stocksto purchase despite high inflation, risk of recession and Russia’s unrelenting war in Ukraine offer the stability of income payouts and a chance for growth during the next year with a pair of leaders in that popular product category. ![]()
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