Activision Blizzard, Inc. (ATVI), Electronic Arts Inc. (EA), Take-Two Interactive Software, Inc. (TTWO): Sell This Game Maker, Buy These Two Instead

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) issued $250 million worth of convertible senior notes in June. Investors reacted negatively to the news at the time, but the offering is nowhere near as big as the Activision debt-financed share buyback deal.

Sports game maker Electronic Arts Inc. (NASDAQ:EA) is up even more in the same period, up 69%. Electronic Arts Inc. (NASDAQ:EA) reported quarterly earnings that trounced forecasts. The company grew subscriptions for Battlefield 3 by 500,000 units. There are now more than 4 million subscribers for the hot game.

EA data by YCharts

Another reason to like Electronic Arts Inc. (NASDAQ:EA) is that mobile game demand is strong, rising 33% in sales year-over-year, to $104 million. Sales were helped by hot titles like The Simpsons: Tapped Out and Real Racing 3.

Foolish bottom line

Activision could face profit taking in the near future. Investors holding this company should look at Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and EA as alternatives. A buying opportunity is created if Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and Electronic Arts Inc. (NASDAQ:EA) drop alongside any profit-taking in Activision Blizzard, Inc. (NASDAQ:ATVI).

The article Sell This Game Maker, Buy These Two Instead originally appeared on Fool.com and is written by Chris Lau.

Chris Lau has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard and Take-Two Interactive . The Motley Fool owns shares of Activision Blizzard. Chris is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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