The stock has approximately doubled in two years, but one fund manager says those now looking at playing Electronic Arts (Electronic Arts Stock Quote, Chart, News: NASDAQ:EA) should have a much longer time horizon than that.
Jason Del Vicario, a portfolio manager at HollisWealth, was on BNN’s Market Call Monday and fielded a call about the video game pioneer.
The PM says Electronic Arts is now a stock for patient investors. He says he would advise buying on a pullback or be mentally prepared to own the stock for a long time.
“This would be one of the companies that’s kind of run away on us,” Del Vicario says. “We would caution that if one were to be buying it at these levels that they should have a least a minimum five year time horizon.
On October 31, EA reported its Q2, 2017 results. The company rode strength in titles such as Star Wars: Galaxy of Heroes, Battlefield 1, Madden NFL 18, FIFA 18, and NHL 18 to revenue of $959-million, a figure that was up 6.8 per cent over the $898-million topline the company posted in the same period a year prior.
The portfolio manager says EA should be commended for its past performance, and says the wind should continue to be at its back.
“They’ve done a tremendous job,” Del Vicario adds. “I think we can all agree that video games and that space is not going away. If anything, it’s a growing business.”