Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game publisher Electronic Arts (Nasdaq: EA ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Electronic Arts' business and see what CAPS investors are saying about the stock right now.
Electronic Arts facts
|Headquarters (founded)||Redwood City, Calif. (1982)|
|Market Cap||$4.0 billion|
|Industry||Home entertainment software|
|Trailing-12-Month Revenue||$4.1 billion|
|Management||CEO John Riccitiello
Interim CFO Kenneth Barker
|Return on Equity (average, past 3 years)||(10.2%)|
|Cash/Debt||$1.9 billion / $539.0 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 12% of the 2,255 members who have rated Electronic Arts believe the stock will underperform the S&P 500 going forward.
I never will understand this company's financials or management. It is a dominant player in its core business but is seeing its edge chipped away by social media, casual gaming, and mobile. ...
It's a case where the quality of the product and the excellence of execution on projects somehow isn't matched by the big-picture global management strategy.
I first made this thesis in 07 and it's netted me a couple hundred CAPS points so far. I'd sure like to hear from somebody telling me why I'm wrong.
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