Today's video focuses on recent news, stock price movements, and fundamentals for Electronic Arts (EA +0.04%) and Qualcomm (QCOM 0.17%). Electronic Arts is a gaming stock with a powerful list of games like FIFA, The Sims, and Battlefield. Qualcomm is a semiconductor company that creates solutions for numerous smartphones and other electronics. Here are some highlights from the video:
- EA's stock price dropped over 5% on Wednesday, Sept. 15, because its Battlefield 2042 video game was delayed. The original release date was in late October, and now the game is set to release on Nov. 19. Despite the delay, Electronic Arts has reiterated its booking guidance for its fiscal year 2022.
- Qualcomm stock price dropped roughly 3% on Friday, Sept. 17 on no notable news. The semiconductor industry has been affected by the chip shortage, which has caused volatility within its market. In its most recent earnings, which ended its fiscal third quarter, the company reported 63% year-over-year growth in revenue, driven by solid demand for all its products.
- With regard to the ratio of forward enterprise value to earnings before interest, tax, depreciation, and amortization (EV-to-EBITDA ratio), both Electronic Arts and Qualcomm are sitting at levels seen during the summer of 2020. Electronic Arts has a forward EV-to-EBITDA ratio of roughly 14 and Qualcomm's is roughly 12.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Sept. 17, 2021. The video was published on Sept. 17, 2021.
