Science & Technology
Science and Technology
Science and Technology
Wed, June 30, 2010
Tue, June 29, 2010 Electronic Arts, Apple, Activison Blizzard, Take-Two Interactive Software and Freddie Mac
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Electronic Arts Inc. (Nasdaq: [ ERTS ]), Apple Inc. (Nasdaq: [ AAPL ]), Activison Blizzard (Nasdaq: [ ATVI ]), Take-Two Interactive Software Inc. (Nasdaq: [ TTWO ]) and Freddie Mac (NYSE: [ FRE ]).
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Here are highlights from Mondaya™s Analyst Blog:
Electronic Arts Tops iPhone Chart
EA Mobile, a division of Electronic Arts Inc. (Nasdaq: [ ERTS ]), a video game maker and publisher announced that among the top 20 gaming titles available on Apple Inc.a™s (Nasdaq: [ AAPL ]) iPhone 4, 12 were from the Electronic Arts mobile gaming division.
Electronic Arts management believes that this rating reflects the popularity of its brands among the consumers who use iPhone and other mobile devices.
Electronic Arts said that it is offering 16 of its most popular titles for download to iPhone users at lower prices ranging from $0.99 to $2.99. The discount will end on June 28, 2010.
Applea™s iPhone 4 has a 3.5-inch display with a native resolution of 960 by 640 pixels. Commonly known as retina display, this is four times the pixel density of a typical LCD display at a whopping 326 pixels per inch, providing a higher resolution for players.
Applea™s iPhone supports more than 100 features with a 3-axis gyroscope, enabling users to play games with a greater ease.
Electronic Arts recently launched NCAA football for iPhone 4. This is the first game developed specifically for iPhone 4, utilizing its new retina display. Players have the option to choose from 55 colleges or can create a new one to play the BCS National Championship.
EA Sports-FIFA 2010, another Electronic Arts game in demand, allows users to play with any of 570 teams in 30 leagues using the iPhone's touch screen and accelerometer.
We believe popular titles such as 2010 FIFA World Cup South Africa, SCRABBLE, Tetris, MONOPOLY and BATTLESHIP will help Electronic Arts mobile division to achieve significant market share and top-line growth going forward.
Gaming industry is going through a major transition. With the advent of smartphones, iPad, iPhone and PDAa™s, mobile gaming is becoming a major revenue earning market for the game companies.
According to research firm, DFC Intelligence, mobile gaming industry is expected to grow to $11.7 billion by 2014. The iPhone alone is estimated to constitute 24% of the total gaming software sales. In our view, this will be a major growth driver for Electronic Arts.
Electronic Arts is poised for growth as it posted non-GAAP net revenue of $4.16 billion and had 27 titles that sold more than one million units in fiscal 2010.
However, Electronic Arts faces stiff competition from Activison Blizzard (Nasdaq: [ ATVI ]), Take-Two Interactive Software Inc. (Nasdaq: [ TTWO ]) and privately held Sony Online Entertainment LLC.
We believe Electronic Arts has a strong pipeline of products such as Medal of Honor, Dead Space 2, Need for Speed Hot Pursuit and Crysis 2 in the second half of 2010, which is expected to drive its top-line growth in the coming quarters.
We have a neutral recommendation on a long-term basis for Electronic Arts. Electronic Arts has a Zacks Rank of 3, which implies a Neutral rating on a short-term basis.
Freddie to Sell Reference Bills
On Friday, Reuters reported that Freddie Mac (NYSE: [ FRE ]) will sell $3 billion reference bills on June 28. These reference bills securities are unsecured general corporate obligations, providing the company short-term debt for maturities ranging from one month to one year.
Freddiea™s reference bills consist of two offering: $1.5 billion three-month bills maturing on September 27, 2010 and $1.5 billion six-month bills maturing on December 27, 2010. Both these bills are expected to be sold on June 28 and will be settled on June 29.
Freddiea™s reference bills are to be sold in a Dutch auction over the internet. In such auctions, rather than paying the actual price as in a multiple auction, winning bidders are required to pay only the lowest accepted bid price. The authorized dealers are only eligible to accept these bids.
Last week, Freddie had sold $3.5 billion of reference bills at lower rates compared with the recent sale of identical bills.
Since September 2008, Freddie is under government control with almost 80% being owned by US taxpayers and is placed under the conservatorship of The Federal Housing Finance Agency (FHFA). Freddie mostly acquires mortgages and mortgage-related securities from primary market institutions such as commercial banks as well as savings and loan associations, providing liquidity in the secondary mortgage markets without lending directly to homebuyers.
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