Electronic Arts (NASDAQ:EA) enjoyed 2019 so far with a steady uptrend but the rebound is hardly finished. The stock still has a long way to go before recovering back to the ~$150 high. When will that happen?
EA is gaining user activity traction with Anthem. In February, the title reached the top sales list. Its mobile game Rivals has potential but the revenue potential is limited. Apex Legends is another free-to-play title that could eventually bring in meaningful revenue. EA just needs its gaming community to spend more time and become willing to buy goods in-game.
At a macro level, video game sales rebounded in February, up 4%. NPD Group posted sales topped over $1 billion. Activision’s Call of Duty: Black Ops 4 was on the number 10 spot. That suggests that with Take-Two’s (NASDAQ:TTWO) Dead Red Redemption at the top, and Nintendo’s (OTC:NTDOY) Super Smash Bros. Ultimate ahead, investors may want to consider those companies, along with EA, as rebound plays.
Activision’s release of Call of Duty: Mobile is a positive development.
Takeaway
Investors may want to wait for another month and to look for March video game sales rebounding.
