New York (CNN Business)Everything you can think of, video games Leader Electronic Despite inflationary concerns, recession fears and other macroeconomic headwinds, Arts is entering a fairly decent year. The share of EA (EA)has fallen by only about 2% in 2022. This isthe rest of the technology sector,is currently in the bare market territory.
Can the EA remain independent as the peer continues to grow? Competition with Metaverse mobile game companies such asRobloxandFortnitemakers Epic is also intensifying. Netflix (NFLX) Eventhrew the hat into the field of games.
And EA isApple (AAPL),Disney (DIS),Comcast (CMCSA), OrAmazon (AMZN)
So EA will finally be acquired. The company couldn't get immediate comments.
However, EA is making acquisitions on its own and may be looking for deals that could specifically strengthen the mobile gaming sector. EA made two such acquisitions in 2021, Glu $ 2.4 billion, Playdemic (formerly CNN's parent companyAT&T ({122) } T)) $ 1.4 billion.
Goldman Sachs analysts estimate that the EA itself is about 15% likely to be acquired. This is "when the level of activity in the video game space is high". Broader tech sectorCertain possibilities are small, but greater than zero.
Analysts have come up with a potential takeover valuation of $ 190 per share "in line with recent video game trading." This is almost 50% above the current stock price of EA.
Still, EA has enough quality content to justify doing it alone in the foreseeable future.
Wells Fargo analyst Brian Fitzgerald said in a report after the latest earnings of EA were announced in May, "The Solid Pipeline" (more games from EA Sports). In addition, The Sims, Lord of the Rings, Bioware franchise updates) are mentioned. Not only did he "accelerate mobile growth," he was also positive for equities.
Therefore, EA may not need to market to large companies in order to remain competitive in the video game world.
Tap revenue from Nike and Walgreens
There is a clear dip in the "revenue season". Most major companies will report their second quarter results in mid-July. However, some notable companies, including two Dow components, are using it to announce their results this week.
Nike(NKE)reports revenue after Monday's Closing Bell. This year, the share of sneaker and athletic apparel giants has fallen by nearly 35%.
The company reported strong results in March, but geopolitical concerns are squeezing Nike's share price. Analysts predict Nike will announce a decline in quarterly sales and earnings per share. Nike has also just announced thatwill leave Russiain the light of the Ukrainian invasion.
Walgreens (WBA)will also report results before the market opens on Thursday. This year's share is down 20%, doubling the 10% decline of rivalsCVS (CVS). But not as bad as45% plunge in Rite Aid (RAD)
2021 3 The second year was challenging for WalgreensCEO Rosalind Brewer, who took the top position in the month.
Veteran executive 190} Wal-Mart(WMT)andStarbucks who previously played a leading role in { (SBUX)issupply chain disruptionand concerns about economic slowdown and weakening consumer demand Are dealing with. This is a problem faced by all retailers. Wall Street predicts that revenue and net income will decline from a year ago.
Next
Monday: Orders for durable consumer goods in the United States. US pending home sales. Revenue from Nike,Jeffreys (JEF)andTrip.com (} TCOM)
Tuesday: US Consumer Confidence
Wednesday:Revenues from General Mills(GIS),McCormick (MKC),Bed Bath& Beyond (BBBY),Paychex (PAYX)andPatterson (PDCO)
Thursday: Second Quarter The end of the. Weekly US unemployment insurance claims. US PCE inflation; US personal income and spending. Revenue from Walgreens,Constellation Brands (STZ)andMicron (MU)
Friday: USISM Manufacturing