Question on Earnings
expectations for EA and ATVI
EA is supposed to post improvements over the next year, i.e.
trailing PE is ~24 and Forward PE below 21
ATVI has a ton of expectattons (priced in??) given that its
trailing PE is > 40 and forward PE is 20
I know that ATVI has a full slate of game releases these
Holidays, but are the expectations correct? Given that it
currently sports a high PE (relative to the S&P), are they
correct? And if so, what about after the Holidays? Next
year Holidays for example? Is the current high multiple
sustainabe?
As to EA, it looks even more overpriced given that this year's
growth is rather tame.
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ATVI's new CoD should have a strong opening thanks to bundling
Modern Warfare 4 Remastered in the higher priced versions, which is
officially the only way to get that highly sought bonus. although I
expect in coming months it will be a separate $20-ish download. The
launch may beat BLOPS3, but I doubt in the long run it will stay
ahead, since it now has to compete with Battlefield and Titanfall.
PSVR will sell out too, so it should be a strong holiday season for
the sector. They are both quite richly priced, and imo only staying
so strong on technicals, aka, "It's been going up therefore it will
keep going up."
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Author:
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Jester
Debunker
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Subject:
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Earnings
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Sentiment:
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Neutral
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Date:
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10/11/16 at 10:55 AM CDT
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Thanks for the info. I heard that ATVI's modern warfare
will take up some $130GB!!! Wow! Can anything else fit in the
Playstation or XBox drive?
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Author:
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LongTerm
CapGains
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Subject:
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Earnings
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Sentiment:
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Neutral
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Date:
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10/11/16 at 11:01 AM CDT
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LOL yeah, 130GB is nuts. I think the game may be including some
higher res assets for the Pro version? I have 2TB in mine, so no
big deal, and I'm not planning to get it anyway. I believe if you
have the digital version, MWR is a separate title and so you could
save space deleting that if needed. I wonder how big the early
downloads will be for disc buyers, because I haven't heard anything
about it being on 2 or 3 discs, and 50GB is the standard Blu-Ray
capacity.
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Author:
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Jester
Debunker
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Subject:
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Earnings
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Sentiment:
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Neutral
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Date:
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10/11/16 at 11:08 AM CDT
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