Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...

(Bloomberg Opinion) -- In these days of sheltering in place, music fans looking for live entertainment in a concert or large-group setting are pretty much out of luck. The best many can hope for are at-home performances of their favorite entertainers beamed through Zoom or on TV. In late April, though, followers of rapper Travis Scott became the exceptions, thanks to Epic Games Inc.’s Fortnite.The video game — most of the time a battle-royale style contest where 100 players face off against each other in deadly combat on an island — was transformed into one of the world’s biggest concert venues, with the platform presenting new material from the rapper in a psychedelic show, “Astronomical.” Performing as a giant-sized avatar, Scott appeared in outlandish space and undersea scenes, with gamers able to simultaneously fly, swim or dance around him. In all, nearly 28 million people found mental refuge attending the concerts inside the game.The scale of this type of new virtual-world mass experience and the popularity of rebooted old favorites such as Nintendo’s “Animal Crossing” point to what is now becoming possible on the back of the latest technology advances in gaming, including cloud-computing, more powerful semiconductors and game programming engines. And with video-game usage soaring as one of the main options for in-home entertainment amid the pandemic, these innovations come at the perfect time to spark the next level of growth for the industry.Life in lockdown has certainly given the gaming sector a boost: According to the NPD Group, U.S. video-game industry sales rose 35% in March with only two weeks of the shelter-in-place benefit, versus monthly declines during the first two months of the year. And April is likely to be even better. KeyBanc Capital Markets’ internal card spending data for the category shows weekly year-over-year revenue growth rates ranging from 70% to 90% last month. Late Tuesday, the two largest independent U.S game publishers — Activision Blizzard Inc. and Electronic Arts Inc. — confirmed they saw accelerating business momentum in the last month, following the lockdown orders. These latest growth rates are much higher than the 9% sales rise for the 2020 global games market projected by research firm Newzoo.In many ways, Epic Games is at the forefront in driving this next gear for the industry. Not only does it make Fortnite, it also has created the market-leading Unreal game engine that is widely used by other development studios to enable similar mass multi-player experiences. And investors are noticing Epic’s wild success. Last month, Bloomberg News reported the game maker is in talks to raise a new round of funding that is now expected to come at a significantly higher valuation than its last round, done at $15 billion in 2018.This gaming surge could be the catalyst for a series of strong growth years for the industry. While there has always been a hard-core, steady audience for industry’s online multi-player games, the influx of new gamers may be more durable due to several factors. First, new habits are being formed as the beginners get exposed to the social communities inherent in today’s online multi-player games. As they build relationships with others inside these virtual worlds, it engenders long-term stickiness to the hobby. Second, the rising interest comes at the perfect moment, right before Microsoft Corp. and Sony Corp. are about to launch their next-generation gaming consoles for the first time in seven years. The cutting-edge technologies inside the two hardware devices that are slated to launch this holiday will enable even more immersive worlds and addictive photo-realistic experiences. And in this more uncertain environment, gaming makes economic sense, too. In March, I wrote about the record-breaking sales of the latest version of the multi-player “Animal Crossing” and how retailers couldn’t keep the three-year-old Nintendo Switch console in stock because of rising demand for the title. At first blush, buying a $299 console to play a virtual life-simulation may seem like a big splurge. But the reality is, gaming is one of most inexpensive forms of entertainment on a per hour basis. Consumers can literally get hundreds of hours of playing time from one title.Read more: Nintendo's Animals May Be a Covid-19 Netflix Moment: Tim CulpanTo be sure, the industry won’t be totally immune from the negative aftereffects of the virus. There will likely be some delays as developers face challenges creating games and art assets from their home offices. Moreover, the initial manufacturing volumes for the new consoles could be reduced in the event of component shortages from supply-chain difficulties. But any short-term disruptions are less important compared to the larger long-term secular opportunity.Eventually, the pandemic will wane and people will return to spend time on their favorite outdoor activities. But most gamers — new and old — are likely to keep coming back to the hobby because of the enjoyment it provides. Yes, there’s never been a better time to be a gamer and this could be the start of a new golden era for the industry.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Farfetch (NYSE: FTCH) and Electronic Arts (NASDAQ: EA) are two such stocks to keep an eye on. Farfetch operates a digital shopping platform that allows luxury brands to connect with consumers. Electronic Arts is one of the world's leading video game makers.

Yahoo Finance's Jared Blikre joins Jen Rogers to break down the day's price action in stocks as well as a long in Electronic Arts (EA), a YF Premium Investment Idea.

Nintendo earnings soar 41% and Activision Blizzard posted a beat on its earnings report. Yahoo Finance’s Tech Editor Dan Howley breaks down the latest video game earnings results.

(Bloomberg) -- Amazon.com Inc. faces a crucial test on Wednesday with the release of its first original big-budget video game. The reception from homebound gamers will signal whether the company can become a force in a $159-billion global industry dominated by the likes of Microsoft Corp. and Activision Blizzard Inc.Crucible is a free-to-play PC game in which teams hunt down opponents and creatures on a distant planet. Amazon plans to start selling another game in August. Called New World, it will put players on a mysterious island where they will battle one another and hunt. The company is also working on The Lord of The Rings game and some unannounced projects.Crucible will make money by selling digital merchandise as well as seasonal battle passes. New World should fetch $40 for a standard edition and $50 for a deluxe version, including additional in-game items and a digital art book.“There’s tremendous room for invention in games,” says Mike Frazzini, the vice president of Amazon Games. “We’re just getting started.”If the first two titles are well received, Amazon’s gaming division could attract talent and shed a reputation for fits and starts. Popular games could also help build momentum for the company’s widely expected launch of a game-streaming service to rival Google Stadia, which lets users play a bunch games from any compatible device, without needing to download or update them. “There is much riding on the success of Crucible and New World,” says Billy Pidgeon, an analyst at Go Play Research.Amazon has been selling games from independent as well as the world’s largest publishers for decades, and its Amazon Web Services and tools support development of other companies’ games. It entered game publishing in 2012, partly to give consumers another reason to sign up for its Prime subscription, which along with free shipping offers a variety of entertainment options including television shows and movies. Early efforts that focused on mid-tier games, including some designed for Amazon's Fire TV streaming devices, didn't make a splash.Amazon constructed its game strategy from various pieces. In 2014, the Seattle-based company purchased Twitch, where people stream themselves playing such games as Fortnite and Valorant. Two years later, Amazon launched Twitch Prime, which gives game-playing Prime subscribers extra perks for no additional cost.The company began working on its own titles by hiring famed designers like Kim Swift. But Amazon has struggled to retain key talent, including Swift, who left for Electronic Arts Inc. and now works at Google. In 2018, Amazon canceled a game called Breakaway, in which teams tried to move a ball to their opponent’s goal. Last summer, the gaming news publication Kotaku reported that the company had laid off dozens of game developers and shelved some unannounced titles. Even the Crucible and New World release dates have been pushed out; Amazon blamed fallout from Covid-19.There’s plenty of competition. Microsoft, Sony Corp. and Nintendo Co. all have their own hardware—often an advantage because consoles enable advanced features. Facebook Inc., meanwhile, offers games like FarmVille on its social network, and its Facebook Gaming live-streaming service has been stealing share and streamers from Twitch. Amazon is also competing with established game publishers such as Activision and EA, which are constantly improving their existing games and coming up with new hits.Amazon has called in some extra help to push its games across the finish line. In 2017, former EA veteran Bing Gordon left Amazon’s board to help guide the division as a consultant. He has advised on marketing strategy and even played some games and offered feedback. Gordon is renowned for leading EA’s product development and creating an innovative pricing strategy for its online games.His initial agreement to consult for Amazon’s games division was extended and runs for about another year, according to a person familiar with the matter. A company spokesperson confirmed Gordon is advising the division. His involvement with Amazon’s game unit was previously reported by the tech news site The Information. Gordon is also on the board of mobile game maker Zynga Inc.“Amazon Game Studios is still finding its way,” says Susan Eustis, president of Wintergreen Research. But one hit game could provide a huge lift, she adds, and Amazon's 150 million paid Prime members globally represent a big market advantage.Launching a product in the midst of a pandemic may seem counter-intuitive. But gaming has become a go-to entertainment choice for people hunkered down at home—a captive audience if ever there was one. Players have been flocking to new releases like Animal Crossing: New Horizons, as well as rediscovering old favorites like Fortnite. Still, as the lockdowns ease, the recent surge in game playing could abate. Whether people keep paying for games amid skyrocketing unemployment remains to be seen.Amazon’s new games are likely to get a bump from Twitch, which can help publishers market new releases. Twitch’s players and streamers have been involved in the development of Crucible from early on. The game itself is specifically adapted to show well on the service: Characters are easily recognizable from a distance. It’s fast-paced from the get-go, an effort to make it exciting to watch. Twitch has said that ads on the platform to promote EA’s Apex Legends game helped it get 25 million unique users in a week.“One of the things that we hear most often from people who try Crucible is that it feels unique,” Frazzini says. “There are elements and gameplay mechanics that feel familiar, but they’re combined in a way that’s different from anything else they’ve played.”But making a blockbuster game is not easy, for anyone. Some reviewers who got an early peek at the two games liked them; others have not.“The buzz on these games has not been that great,” says David Cole, founder of DFC Intelligence, which tracks digital entertainment. “They are ambitious, but the market changes fast and both products already look passe now.”There have been plenty of naysayers with many titles that have gone on to become a success. Ultimately, it’s the players who will decide whether Amazon will become a gaming powerhouse.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

The number of U.S. fatalities from the coronavirus that causes COVID-19 climbed above 73,000 on Thursday, as President Donald Trump’s administration said it is shelving recommendations from the Centers for Disease Control and Prevention on reopening safely because they were too cautious

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BMO Capital Markets analyst Gerrick Johnson says Take-Two Interactive’s plan to keep a light schedule of new releases for fiscal 2021 is a shrewd move, giving its labels more time to fully exploit the technology in the new gaming systems.

Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]

This one metric point says Activision has an edge over its video game making rivals in the short term.

Amid COVID-19 lockdowns, one area that has fared well is video game stocks. Given the original game and product releases, Electronic Arts (NASDAQ: EA), NVIDIA (NASDAQ: NVDA), and Zynga (NASDAQ: ZNGA) could provide the industry with an additional boost even if many gamers have less time for their hobby. The company just lost its 15-year exclusivity deal with the NFL.

Video game stocks are surging to higher ground, with stay-at-home orders and a new generation of consoles attracting buyers.

Electronic Arts (NASDAQ: EA) reported fourth-quarter earnings Tuesday of $1.43 per share against a 98-cent estimate and sales of $1.387 billion that beat a $1.19-billion estimate.The video game developer guided to first-quarter net sales of $1.22 billion, net bookings of $1 billion and earnings of 93 cents per share.Electronic Arts expects fiscal year 2021 net sales of $5.525 billion and earnings of $3.35 per share. Nearly 80% of EA's revenue came from digital sales, and titles like "Apex Legends" have continued to compete against other digital free-to-play titles like Activision's (NASDAQ: ATVI) "Call of Duty: Warzone."In addition, EA Sports titles like "FIFA" and "Madden" are continuing to experience growth, particularly due to live services. While the coronavirus pandemic has harmed physical retail sales, there wasn't a major impact seen in the results reported this week. The stock lost 3.59% Wednesday, ending the session at $115.32. Can EA Compete Long-Term? BofA Securities has taken note of EA's ability to grow, even during a pandemic.The video game publisher should realize ongoing margin expansion as more revenue is derived from higher-margin digital sources, analyst Ryan Gee said in a Wednesday note."We expect margin expansion to continue on the MTX/digital shift, however, recent execution issues on non-sports titles (especially mobile) makes us question its longer-term competitiveness," the analyst said. View more earnings on EANeedham detailed EA's growth potential, stating that the company's defensive placement due to its online presence could help maintain resiliency.EA's "physical sales represented only 20% of EA's 2019 revenue, down from 84% during the 2009 recession, so store closures have had a limited negative impact," analyst Laura Martin said in a Wednesday note. EA's ability to fill the industry with sports entertainment has helped the company tremendously, she said. "Although it is unclear exactly when live sports like the NFL or FIFA will return to work, EA proved in the March quarter that it can drive higher engagement with its sports games through new content and new features for fans starved for the social communities and conversations built around sports content." EA is set to be a key beneficiary of the stay-at-home trend, Wedbush analyst Michael Pachter said in a Wednesday note. "The company has begun to restore investor confidence in our view, and we think investors should once again give management the benefit of the doubt about its three-year forward release schedule."EA's Growth Could Depend on Larger Titles While EA has maintained a strong foothold with its online presence, growth may dwindle until larger AAA titles are released. Wedbush predicts modest growth in fiscal year 2021, but said it "will grow dramatically in FY:22 from the 'Battlefield' launch and from a ramp in 'Apex Legends' on mobile, and will grow even more dramatically in FY:23 from launches of an additional 'Star Wars' title, the 'Titanfall' brand extension from Respawn, the expansion of 'Apex Legends' into China, and games from BioWare and Motive."Benchmark's Mike Hickey said EA issued a "monster" first-quarter outlook and a disappointing 2021 outlook. "We suspect EA is concerned over potential game delays and how sports games and related live service games will perform with the current disruption to professional sports where the IP is synched," the analyst said. Electronic Arts Ratings * Wedbush has an Outperform rating and raised its price target from $135 to $145. * Needham maintained a Buy rating and raised its price target from $120 to $135. * Benchmark reiterated a Buy rating with a $143 price target. * BofA Securities reiterated a Neutral rating and raised the price objective from $116 to $122. * Latest Ratings for EA DateFirmActionFromTo May 2020BairdMaintainsOutperform May 2020JP MorganMaintainsOverweight May 2020WedbushMaintainsOutperform View More Analyst Ratings for EA View the Latest Analyst Ratings See more from Benzinga * With NHL Season On Ice, League Launches Esports Challenge: 'Extremely Fun To Watch' * 'Fortnite' Popularity Fades As 'Call Of Duty' Closes Gap, Survey Says(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Q4 2020 Electronic Arts Inc Earnings Call

The rapid rise in video game sales has been boosted by coronavirus-led lockdowns and technological breakthroughs.

Electronic Arts Inc.:

Activision Blizzard reported its Q1 2020 earnings on Tuesday, with net bookings jumping 21% year-over-year. Yahoo Finance’s Dan Howley joins Yahoo Finance’s Seana Smith to discuss.

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The U.S. death toll from the coronavirus that causes COVID-19 rose above 71,000 on Wednesday, as President Donald Trump appeared to back off his announcement that he would phase out the government task force created to manage the pandemic