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Battle Of The Stocks: Electronic Arts Vs Activision Blizzard



In our fourth edition of the Battle Of The Stocks, we size up two domestic gaming giants: Electronic Arts [EA] and Activision Blizzard [ATVI]. These behemoths account for a significant portion of the gaming market share in the United States.

The United States’ gaming market has been valued at $30.4B in the trailing 12 months prior to June this year. Comparatively, EA has reported sales of $5.1B while ATVI has sales of $7.2B in the same period. These two firm’s accounted for over 40% of total gaming revenue in the United States.

EA and ATVI have created significant investor wealth over the past few years. Activision Blizzard’s shares have generated absolute returns of 340% while EA stock has risen 348% in the last five years.

But historical gains are not an indicator of future performance. Let us look at the key financial metrics between the two companies and compare them to see which is a better buy at current levels.

Market Cap

Driven by the massive increase in share prices, the market cap or market value of Electronic Arts and Activision have gained significantly over the last few years.

Shares of EA have risen 57% over the last three years and is up 4.2% this year. Comparatively, the ATVI stock has gained 133% in the last three years and up 48% in 2018.

EA’s market cap is currently $33B while Activision’s market cap is higher at $59B.

Revenue Growth

Revenue growth is a key indicator to gauge the financial position of any company. Any firm that can grow its revenue will be worth investing in. EA reported sales of 5.18B in fiscal 2018. Analysts expect EA’s revenue to grow 1.9% to $5.28B next year, 9.7% to 5.8B in 2020 and 6% to $6.12B in 2021.

Activision Blizzard reported sales of $7.16B last year. According to analysts, the company is estimated to grow sales by almost 7.4% in 2020.

WINNER: Activision Blizzard


The significant rise in digital and mobile gaming has driven profit margins of companies higher. The high gross margin translates into robust bottom-lines for companies.

EA’s operating margin is expected to be 35% in 2019. ATVI’s estimated profit margin is estimated to be higher at 36% in 2019.


Earnings Growth

While the two companies are looking to improve profit margins, analysts and investors are concerned over the earnings growth potential.

Analysts expect EA’s earnings per share (EPS) to grow 14.3% over the next five years. Comparatively, analysts expect Activision’s earnings to rise 15.2% over the next five years.

WINNER: Activision Blizzard

Analyst estimates

We have looked at key financial metrics for the two stocks. Let us now see what Wall Street analysts expect from the two companies. Analysts have a 12-month average target price of $141.15 for EA, indicating an upside potential of 29%.

Comparatively, analysts expect ATVI’s share price to rise to $81.11, providing an upside potential of 4.5% over the next year.

WINNER: Electronic Arts

The scorecard is slightly in favor of Activision at 2-1. However, with the gaming industry set to experience revenue growth over the next few years, both the companies are likely to benefit.

Activision pips EA slightly with its extensive gaming portfolio and expertise in eSports. Activision Blizzard, in fact, created the first competitive global eSports league earlier this year.

Wealthlab Verdict:  Activision Blizzard (2-1)


Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today



Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today

Airbnb is a great way to earn money by renting out your home or apartment.

However, did you know that you can also make money by offering experiences on Airbnb? Here are five easy ways to make extra cash today by creating and offering Airbnb experiences.

1. Offer a food tour

If you love food, why not share your passion with others? Create a food tour experience in your city, showcasing the best local cuisine. You can offer a walking tour or a bike tour, and include stops at local markets, restaurants, and cafes. This is a great way to meet new people and earn money at the same time.

2. Teach a skill or hobby

Do you have a skill or hobby that you’re passionate about? Share your knowledge with others by offering an experience on Airbnb. You can teach anything from photography to cooking to yoga. People are always looking for new experiences, and they’re willing to pay for them.

3. Host a cultural event

If you come from a different culture, why not share it with others? Host a cultural event, such as a traditional dance, music, or art class. This is a great way to showcase your culture and make some extra cash.

4. Offer a nature experience

If you live in a beautiful area, offer a nature experience on Airbnb. You can offer a hiking tour, a kayaking trip, or a birdwatching tour. People love to get out into nature, and they’re willing to pay for it.

5. Host a wellness retreat

If you’re passionate about wellness, why not host a retreat? You can offer yoga classes, meditation sessions, and healthy meals. This is a great way to help people relax and recharge, while earning some extra cash.

In conclusion, offering experiences on Airbnb is a great way to make some extra cash. With these five easy ideas, you can get started today.

For more ideas and tips on how to make money, check out this Airbnb guide inside our academy.

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10 Tips for Making More Money with Your Airbnb Listing



If you’re an Airbnb host looking to increase your revenue, there are several strategies you can implement to make your listing more appealing to potential guests.

Here are 10 tips for making more money with your Airbnb listing:

  1. Set competitive pricing: Research the prices of similar listings in your area to ensure you’re offering a competitive rate. Consider lowering your prices during slow seasons or offering discounts for longer stays.
  2. Offer extra amenities: Providing extra amenities, such as a pool, hot tub, or complimentary breakfast, can make your listing more attractive to guests and justify a higher price.
  3. Invest in high-quality photos: High-quality photos of your space can make a big difference in how many bookings you receive. Consider hiring a professional photographer to capture the best aspects of your listing.
  4. Keep your listing up to date: Make sure your listing accurately reflects the current state of your property. Update your photos, descriptions, and amenities regularly to keep your listing relevant and appealing.
  5. Respond promptly to inquiries: Quick responses to guest inquiries can lead to more bookings and positive reviews. Make sure to check your messages frequently and respond as soon as possible.
  6. Provide excellent customer service: Going above and beyond for your guests can lead to positive reviews and repeat bookings. Make sure to communicate clearly and address any issues promptly.
  7. Offer local recommendations: Providing guests with recommendations for local restaurants, attractions, and activities can enhance their experience and justify a higher price for your listing.
  8. Allow instant bookings: Allowing guests to book instantly can make your listing more appealing to those who need to book at the last minute. However, make sure to set clear guidelines for instant bookings to avoid any issues.
  9. Offer discounts for repeat guests: Offering discounts to guests who have stayed with you in the past can encourage repeat bookings and increase your revenue over time.
  10. Keep your space clean and well-maintained: A clean and well-maintained space can lead to positive reviews and repeat bookings. Make sure to keep your space clean and address any maintenance issues promptly.

Implementing these 10 tips can help you make more money with your Airbnb listing and improve your overall hosting experience. Happy hosting!

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How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀



I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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