By most measures, Electronic Arts (NASDAQ: EA ) stock has been a delight for investors. A new 52-week high set on June 7 comes just ahead of a press conference to preview plans for the E3 entertainment expo, which opens this week in Los Angeles. What could possibly go wrong?
Three things, I think:
GTA V, the latest in Take-Two Interactive's (NASDAQ: TTWO ) multibillion-dollar Grand Theft Auto franchise. A recent trailer for the new game has garnered more than 6 million views as of this writing. Don't be surprised if this game, which is due to hit stores in September, captures the bulk of the buzz coming out of E3.
Call of Duty: Ghosts, a newer, darker version of Activision Blizzard's (NASDAQ: ATVI ) hot-selling war series is due in November. A YouTube trailer posted two weeks ago has more than 13 million views as of this writing.
And what of EA's latest, Madden NFL 25? Just 178,000 have watched this trailer so far.
Gamers aren't salivating over EA's offerings the way way they are over competitors' titles.
Maybe it won't matter in the long run. But as the market gets tougher -- as iPads and iPods conspire to attract former console couch potatoes -- investors are probably going to need much more than the annual Madden refresh to push Electronic Arts stock to fresh highs. New Star Wars titles can't get here fast enough.
Do you agree? Please vote in the following poll, and then leave leave a comment to let us know whether you would buy, sell, or short Electronic Arts stock at current prices.