Piper Jaffray Previews E3 Trading Opportunites (EA) (ATVI) (TTWO) (GME)

Piper Jaffray analyst, Mike Olson, previewed the E3 video game conference is 6/14 - 6/16 in LA. The analyst expects virtual reality to no doubt be a focus theme at E3, but we does not anticipate a near-term (12-18 months) impact on our video game coverage names. . He believes the footprint of current gen hardware (>60M units) will grow to ~80M by year end. This is positive for video game publishers and GameStop, as it creates more "shots on goal" to sell games into. Activision should offer a deeper look at the next Call of Duty, EA should unveil a new IP, Take-Two has hinted a significant announcement at the show and Gamestop could benefit from discussion around new hardware (Sony's PS4.5 & VR, and Nintendo's NX).

The video game group (ATVI, EA, GME, TTWO) has outperformed the market following E3 over the past 3 years, suggesting investors should own some combination of these names into the event.

Related Stocks: Activision Blizzard (NASDAQ: ATVI), Electronic Arts (NASDAQ: EA), GameStop (NYSE: GME), Take-Two Interactive Software (NASDAQ: TTWO)

*** SI NOTE - TTWO was highlighted in the Stealth Growth Investor newsletter on 5/19. Sign-up for FREE here.

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