Fidelity Boosts Electronic Arts (EA) Stake to 10.6%

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					Robert DeFrancesco’s
December 10, 2012

Fidelity Boosts Electronic Arts (EA) Stake to 10.6%
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*Winners emerge from Q3 earnings season
*LinkedIn gets bigger in the enterprise
*ServiceNow builds its customer base
*Imperva issues an upbeat 2013 outlook
*Beneficiaries of the telecom spending rebound
*Teradata sees a demand pause
*Jive Software regroups after stumble
*Behind Riverbed’s big acquisition of OPNET
*Flashy growth from Fusion-IO
*Sourcefire raises its revenue outlook yet again
*Fortinet and Palo Alto Networks battle it out
*Smartphone growth drives Skyworks
*Facebook finding traction in mobile ads
*Accelerating revenue growth at Akamai
*Cornerstone OnDemand takes HCM mobile
*Workday is ready to disrupt after its sizzling IPO

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In an SEC filing today, Fidelity disclosed a 10.6% stake in videogame maker
Electronic Arts (EA, $14.82). The money manager now owns 32.6 million shares,
up from just 6.19 million shares shared held as of the end of Q3.

During the third quarter, Fidelity upped its EA position by 296% with the purchase
of 4.6 million shares. Clearly the firm’s buying binge continued over the past two

Fidelity is now the #1 holder of Electronic Arts, topping Primecap’s position of 23.6
million shares.
Perhaps the implosion of Zynga (ZNGA) this year has given Fidelity’s portfolio
managers renewed confidence in EA’s digital transition. Zynga used to steal all of the
videogame headlines, but its competitive position has been diminished.

While EA’s fiscal 2013 (March) revenue is expected to be down 2%, the fiscal 2014
consensus estimate indicates top-line growth of 6.4%. The FY2014 EPS estimate is
$1.23, vs. $1.04 for fiscal 2013.


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Description: Electronic Arts shares have rebounded a bit recently, but remain well below the 52-week high of $22