To be an Electronic Arts investor is to possess an iron stomach. The stock is up more than 22% year to date, touching a new 52-week high recently, but there are many -- including former CEO John Riccitiello -- who think EA should be doing better.
Riccitiello resigned after the company issued disappointing guidance for the current quarter. And that's in spite of selling 1.1 million copies of the new edition of Sim City shortly after release. Trouble is, the total could have been higher: EA's servers proved unable to handle the online aspects of the game, forcing the company to up capacity by some 400%.
Should investors be concerned by the gaffes? Not really, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova. In the following video, he illustrates the difference between EA and experienced online peers Activision Blizzard and Zynga and explains why the stock still has room to run.
While Activision and Microsoft have been taking the headlines when it comes to console gaming, Fools following the gaming sector would do well to also keep tabs on Electronic Arts. We can help. Our new special report breaks down the risks and opportunities facing the company to help you decide if EA is right for your portfolio. Click here to get your copy now.
The article 1.1 Million Reasons to Look at This Gaming Stock originally appeared on Fool.com.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's Web home and portfolio holdings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Activision Blizzard and owns shares of Activision Blizzard and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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