Author Bio
John covers consumer goods and technology companies for Fool.com.
Electronic Arts (NASDAQ:EA) saw its share price climb 34% last year as the pandemic led to higher engagement levels across its core titles. Still, the company s guidance for fiscal 2021 (ending March 31, 2021) calls for revenue to increase only slightly over the previous year. Can EA deliver enough growth over the long term to justify buying the stock today?
I think so here s why.
Image source: Electronic Arts.
Industry tailwinds
All signs continue to point to growth in the video game industry over the long term, which is a tailwind for leading game producers like Electronic Arts. Following the engagement trends seen during the pandemic, market researcher Newzoo expects the industry to grow again this year, reaching $189 billion in total game revenue in 2021, up from an estimated $175 billion last year.
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