Today we take a look at two gaming giants: Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:EA). Both companies recently released their earnings and are still showing strength in the gaming market.
Activision Blizzard investors have reaped the gaming market’s rewards as the stock was up some 10% after reporting earnings. Activision’s Call of Duty Franchise now makes roughly 60% of total net booking for the quarter, with the mixture of premium game sales, mobile platform, and free-to-play business model. If Activision can copy this business to its other franchises, like World of Warcraft, Overwatch, and Diablo, it may lead to even more substantial investment returns.
EA Investors were not as lucky, as the stock dropped slightly after their earnings report. EA Leadership is focused more on sports gaming as they see more robust growth in this area than the overall gaming market. Lucky for EA, they have strong IP in this market already and are looking to increase their exposure with Codemasters’ proposed acquisition. Codemasters owns multiple racing game titles, which EA believes will be a great addition to their sports segment.
