Gamers: Invest in EA?

How do you get kids interested in investing? Link top stocks to their favourite hobbies 

Holly Black 26 August, 2021 | 11:02AM
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Holly Black: Welcome to Morningstar. I'm Holly Black, and it's Back to School Week, that means we've got our team of young investment experts back. And this year, we're asking how do you get kids interested in investing? 

Alex Gard: Hello. My name is Alex Gard and one of my favorite things to do is play computer games. My favorite game is Minecraft on the Xbox because it is fun and educational. I could spend hours creating new world in Minecraft and also play online with my friends and I could have loads of fun. 

Black: If your child is gaming mad, but you'd prefer them to think money box than Xbox, then how about investing in the companies behind some of the biggest games out there?

Neil Macker: For those parents whose kids love video games, EA is a well-known name. EA, which we have rated as a narrow-moat stock is best known, of course, for FIFA and Madden. It's annualized sports titles. But it's shooters' Apex Legends has been gaining a lot of traction with gamers over the last two years. 

EA is well liked by many investors because of their annualized titles. And one of the keys to this has been the growth of microtransactions or in-game spending. While parents may not like these in-game spending, this has helped smooth out revenue for EA and its competitors while also improving margins. While we currently have EA rated as a 3-Star stock, we do think on any pullback, it could be an attractive investment for long term holders interested in the video game space. 

Black: Getting kids interested in investing is not easy, but one of the things that professionals advise is trying to link it to something they already know and love. So, whether they're a gaming addict or a chocoholic, there's a stock that can tie into whatever your child's interest or hobby is, and that's a great way to get them started.

For Morningstar. I'm Holly Black.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Holly Black  is Senior Editor,


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