3 Best Nasdaq Darlings, 3 Duds to Sell

Electronic Arts (ERTS) Headed for Much Lower Earnings

Electronic Arts (ERTS) was another stock that could do no wrong. The company is famous for its stable
of video games, especially titles like The Sims and Madden NFL. But like Dell, the company started getting cocky.

Last year, they offered to buy Take-Two Interactive (TTWO) for $2 billion, but Take-Two didn’t take
the $2 billion. I knew this was a bad omen. I expect earnings for the third quarter to be about half what they were a year ago.

That’s not a good sign. Even if ERTS hits my earnings forecast for the year, the stock is still overpriced.

If you own ERTS, my advice is to dump it ASAP.

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