L O S A N G E L E S S A N F R A N C I S C O N E W Y O R K B O S T O N C H I C A G O M I N N E A P O L I S M I L W A U K E E S E A T T L E

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1 Equity Research L O S A N G E L E S S A N F R A N C I S C O N E W Y O R K B O S T O N C H I C A G O M I N N E A P O L I S M I L W A U K E E S E A T T L E Entertainment: Retail November 28, 2016 Michael Pachter (213) michael.pachter@wedbush.com Nick McKay (213) nick.mckay@wedbush.com Alicia Reese (212) alicia.reese@wedbush.com Black Friday 2016 Review - Increased Discounting of Top Video Games as Retailers and Publishers Use Pricing to Drive Demand Entertainment: Retail We saw greater discounting of high-profile new video games this Black Friday compared to last year. Last year s top sellers, Activision Blizzard s Call of Duty: Black Ops III, Bethesda Softworks Fallout 4, and EA s Star Wars Battlefront, saw sticky pricing on Black Friday, with the $60 price point remaining largely intact. While discounting of sports games happens each year, many other titles that maintain pricing on Black Friday were listed at discounts of 40% or more this weekend. For example, Walmart had EA s Battlefield 1 and Titanfall 2 at $27, and Microsoft s Gears of War 4 and Take-Two s Mafia III at $35. Walmart also had Activision Blizzard s Call of Duty: Infinite Warfare Legacy Edition, which includes Modern Warfare Remastered, for $57, a $23 discount. Discounting of Call of Duty: Infinite Warfare began earlier in the week, with widespread discounts of roughly $20 for the different versions of the game. discounting for the PS4 and Xbox One was largely consistent with 2015, as $50 discounts were commonplace. Although hardware discounting should benefit unit sales, the $50 Black Friday discounts follow earlier $50 permanent price cuts, likely resulting in pressure on overall hardware dollar sales. This is reflected in GameStop s Q4:16 hardware sales growth guidance of down 15 20%. Conversely, GameStop s software sales growth guidance for the same time period of down 15 20% is largely a reflection of the mix shift to digital full game downloads, which we believe now account for up to 35 45% of first week sales for core games, likely up at least 10% from twelve months ago and above the steady 5% attrition that GameStop management envisions over time. We attribute sluggish physical software sell-through in the weeks ahead of Black Friday to multiple factors including increased discounting this year. A slew of high-profile hardware and software releases have ramped up the competition for consumer wallet share. Since early August, Microsoft has released multiple Xbox One S SKUs, beginning with the 2TB Launch Edition on August 2, while Sony has released PlayStation VR (October 13) and the PlayStation 4 Pro (November 10). Take-Two s Mafia III launched on October 7, followed by Microsoft s Gears of War 4 on October 11, EA s Battlefield 1 and Titanfall 2 on October 21 and October 28, respectively, Activision Blizzard s Call of Duty: Infinite Warfare on November 4, and Ubisoft s Watch Dogs 2 on November 15, among other high-profile titles. A combination of desirable new hardware and new software all hitting the market largely within a month appears to have caused hesitation among consumers about how to allocate their spending, with that hesitation increasing further following the emergence of compelling Black Friday ads earlier this month. For example, if many gamers knew that they wanted Call of Duty: Infinite Warfare, and they also knew that the game would be discounted by $20 within a matter of weeks, it would make sense for a meaningful percentage of those gamers to temporarily postpone their purchase. We believe that the above scenario held true for many other notable titles, including Battlefield 1 and Titanfall 2. Finally, the pace of the mix shift to digital full game downloads continues to be brisk. As a result, we expect physical software sell-through for November retail month to underwhelm when the domestic data becomes available on December 8. However, we believe that Call of Duty: Infinite Warfare, Battlefield 1, and Titanfall 2 all had solid sell-in. We estimate that Activision Blizzard s Q4:16 guidance reflects a 15% decline in release quarter Call of Duty sales this year, which makes sense given heightened competition. We think it is unlikely that leading retailers would cut their initial orders by over 15% given the sustained success of last year s Call of Duty: Black Ops III and high levels of promotional allowances for initial orders. ATVI share weakness has been driven by UK data suggesting physical sell-through is down by over 50% y-o-y. We do not expect sell-in to be down by anywhere near this level, particularly after Black Friday week discounting and a likely higher mix of sales for the best value $100 version of the game, which is a digital exclusive. Our Fitbit and GoPro channel checks were mixed. We noted large post-black Friday inventory positions for Fitbit devices at several retailers, including Best Buy, despite significant discounting. Although those positions could positively impact 2H:16 sell-in, Fitbit could see a negative impact on re-orders later in Q4:16 and in 2017, which would in turn hurt its initial FY:17 guidance. Sales of Flex 2 relative to competing devices continue to underwhelm partly as supply remains constrained. We did note an uptick in Fitbit app installations beginning on Thursday, although it is unclear whether that improvement can be sustained. We noted significant post-black Friday inventory of GoPro s HERO5 Black and HERO5 Session at the Best Buy stores that we visited, with much less supply at Target, potentially reflecting GoPro s early focus on Best Buy and the ongoing supply ramp. We have yet to get an update on the recalled Karma drone, but we did note deals for many competing devices. Wedbush Securities does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see page 5 of this report for analyst certification and important disclosure information.

2 RISKS TO THE ATTAINMENT OF OUR PRICE TARGETS AND RATINGS Risks to the attainment of our price targets and ratings for the companies that we cover in the entertainment retail sector include changes to the macroeconomic outlook, variability in new product release timing, the effects of competition, changes in consumer shopping preferences, and changes in consumer demand for the products offered, among other factors. Risks to the attainment of our price targets and ratings for the companies that we cover in the interactive entertainment sector include changes to game release timing, greater-than-expected deterioration of the average selling price of hardware and software, the effects of competition from other forms of entertainment and games designed for smart devices, changing macroeconomic factors, and lowerthan-expected consumer demand for video game hardware and software, among other factors. Risks to the attainment of our price targets and ratings for the companies that we cover in the consumer electronics sector include increasing competition for consumer wallet share, product delays, changes in consumer preferences, limited visibility into long-term product launch plans, dependence on third-party manufacturers, macroeconomic factors, and legal, regulatory, and security risks, among other factors. VIDEO GAME DISCOUNTS Best Buy Best Buy offered $50 off any Xbox One bundle, resulting in a starting price of $250. In addition, the buyer of any Xbox One S 1TB bundle got a free wireless Xbox One controller. It also offered the slim PS4 bundle with Sony s Uncharted 4: A Thief s End for $250, a discount of $50, with Sony s The Last of Us Remastered and Sony s Ratchet & Clank. PS4 and Xbox One controllers had starting prices of $40. It also had the New Nintendo 3DS Super Mario for $100. Last year, Best Buy offered $50 off any Xbox One bundle, resulting in a starting price of $300. Gamers could get a free wireless Xbox One controller with the purchase of the bundle with Microsoft s Rise of the Tomb Raider for $350. It had the PS4 bundle with Sony s Uncharted: The Nathan Drake Collection for $300, a $50 discount. It also had the Nintendo New 3DS XL for $180, a $20 discount. Best Buy had a number of games for under $20, including Activision Blizzard s Call of Duty: Ghosts for $5, and Ubisoft s Far Cry Primal and a trio of catalog Sony titles for $15. Games at the $20 price point included Bethesda Softworks Fallout 4, EA s Mirror s Edge Catalyst and Star Wars Battlefront, and Ubisoft s Tom Clancy s Rainbow Six Siege. Games at the $25 price point included Bethesda Softworks The Elder Scrolls V: Skyrim Special Edition and Ubisoft s Just Dance 2017 and Tom Clancy s The Division. Games at the $30 price point included Activision Blizzard s Destiny - The Collection, EA s Battlefield 1, FIFA 17, and Madden NFL 17, Microsoft s Gears of War 4, and Take-Two s BioShock: The Collection, Grand Theft Auto V, Mafia III, NBA 2K17, WWE 2K17, and XCOM 2. Games at the $35 price point included Activision Blizzard s Overwatch Origins Edition and EA s Titanfall 2. For $40, gamers could get a Starter Pack for Activision Blizzard s Skylanders Imaginators or Warner Bros. Lego Dimensions. It had Activision Blizzard s Guitar Hero Live Supreme Party Edition and Guitar Hero Live for $50 and $40, respectively. Best Buy had Activision Blizzard s Call of Duty: Infinite Warfare Legacy Edition, which includes Modern Warfare Remastered, for $60, a $20 discount. It also had buy two and get one free for all pre-owned games. Last year s sale price points included $20, $25, $30 (including for many high-profile sports games), and $35. Activision Blizzard s Guitar Hero Live was $70, a $30 discount, with a free microphone. High-profile recent releases Activision Blizzard s Call of Duty: Black Ops III, Bethesda Softworks Fallout 4, EA s Star Wars Battlefront, and Microsoft s Halo 5: Guardians and Rise of the Tomb Raider were all priced at $60, with the buyer getting three months of PlayStation Plus or Xbox Live for $5. GameStop GameStop offered $50 off any Xbox One bundle, resulting in a starting price of $250. It also offered the slim PS4 bundle with Sony s Uncharted 4: A Thief s End for $250, a discount of $50, with the gamer s choice of Sony s The Last of Us Remastered or Sony s Ratchet & Clank. It offered the wireless PS4 controller for $40 and the wireless Xbox One controller for $50. It also had the New Nintendo 3DS Super Mario for $100. Last year, GameStop offered $50 off any Xbox One bundle, resulting in a starting price of $300. It had the PS4 bundle with Sony s Uncharted: The Nathan Drake Collection for $300, a $50 discount. It also had the Nintendo New 3DS XL for $180, a $20 discount. GameStop had discounts for multiple Blizzard PC games, as well as for Take-Two s Sid Meier s Civilization VI. Games at the $10 price point included EA s Star Wars Battlefront, Sony s The Last of Us Remastered, Take-Two s Battleborn, and Warner Bros. Batman: Arkham Knight and Mad Max. Games at the $20 price point included Bethesda Softworks Doom, Square Enix s Just Cause 3, Ubisoft s Tom Clancy s Rainbow Six Siege, and Warner Bros. Mortal Kombat XL. Games at the $25 price point included Ubisoft s Far Cry Primal. Games at the $30 price point included Bethesda Softworks The Elder Scrolls Online Gold Edition and The Elder Scrolls V: Skyrim Special Edition, Take-Two s XCOM 2, and Warner Bros. Batman: Return to Arkham and The Witcher III: Wild Hunt Complete Entertainment: Retail 2

3 Edition. Games at the $35 price point included Activision Blizzard s Destiny - The Collection and Overwatch Origins Edition, Microsoft s Gears of War 4, and Take-Two s Grand Theft Auto V. Games at the $40 price point included EA s Battlefield 1, FIFA 17, Madden NFL 17, NHL 17, and Titanfall 2, Konami s Pro Evolution Soccer 2017, and Take-Two s BioShock: The Collection, Mafia III, NBA 2K17, and WWE 2K17. Gamers could get a Starter Pack for Activision Blizzard s Skylanders Imaginators or Warner Bros. Lego Dimensions for $45 or $40, respectively. It had Activision Blizzard s Guitar Hero Live Supreme Party Edition for $50. GameStop had Activision Blizzard s Call of Duty: Infinite Warfare Legacy Edition, which includes Modern Warfare Remastered, for $60, a $20 discount. In its preowned business, GameStop offered three games for $20 or $30. It also had buy two get one free on all pre-owned products, a deal that was offered last year as well. It also offered 20% extra credit. Last year s sale price points for new software included $10, $15, $20, $30 (including for EA s sports titles), $35, $40, and $50. Activision Blizzard s Guitar Hero Live was $70, a $30 discount. High-profile recent releases Activision Blizzard s Call of Duty: Black Ops III, Bethesda Softworks Fallout 4, EA s Star Wars Battlefront, Microsoft s Halo 5: Guardians and Rise of the Tomb Raider (with a collector s pin), and Ubisoft s Assassin s Creed Syndicate (with Ubisoft s Assassin s Creed Unity) were all priced at $60. Target Target offered $50 off any Xbox One S bundle plus a $40 gift card. PS4 and Xbox One controllers had starting prices of $40. It also offered the slim PS4 bundle with Sony s Uncharted 4: A Thief s End for $250, a discount of $50. Last year, Target offered the Xbox One bundle with Microsoft s Gears of War: Ultimate Edition for $300, a $50 discount, with a $60 gift card. It had the PS4 bundle with Sony s Uncharted: The Nathan Drake Collection for $300, a $50 discount. It also had the Nintendo New 3DS XL for $180, a $20 discount. Games at the $8 price point included EA s Titanfall and Ubisoft s Assassin s Creed Syndicate, Assassin s Creed Unity, and Watch Dogs. Games at the $15 price point included Bethesda Softworks Fallout 4, Sony s Ratchet & Clank, and Ubisoft s Far Cry Primal and Tom Clancy s Rainbow Six Siege. Games at the $25 price point included Bethesda Softworks Doom, Nintendo s Kirby: Planet Robobot, Pokémon Alpha Sapphire, Pokémon X, and Super Smash Bros., Take-Two s Battleborn, and Ubisoft s Just Dance 2017 and Tom Clancy s The Division. Games at the $30 price point included Activision Blizzard s Destiny - The Collection, Bethesda Softworks The Elder Scrolls V: Skyrim Special Edition, EA s FIFA 17 and Madden NFL 17, Microsoft s Gears of War 4, and Take-Two s Grand Theft Auto V, Mafia III, and NBA 2K17. Games at the $35 price point included Activision Blizzard s Overwatch Origins Edition, EA s Battlefield 1, NHL 17, and Titanfall 2, Nintendo s Super Mario Maker, Take-Two s WWE 2K17, and Warner Bros. Lego Star Wars: The Force Awakens. For $40, gamers could get a Starter Pack for Activision Blizzard s Skylanders Imaginators or Warner Bros. Lego Dimensions, or Activision Blizzard s Guitar Hero Live. Target had Activision Blizzard s Call of Duty: Infinite Warfare Legacy Edition, which includes Modern Warfare Remastered, for $60, a $20 discount. Last year s sale price points included $15, $20, $25, $35 (including for many high-profile sports games), and $50. Activision Blizzard s Guitar Hero Live was $59, a $41 discount, and Skylanders SuperChargers Starter Packs were $35, a $40 discount. Walmart Walmart offered $50 off any Xbox One bundle, resulting in a starting price of $249. It had the Xbox One S bundle with Microsoft s Minecraft and a bonus controller for $279. Walmart offered the slim PS4 bundle with Sony s Uncharted 4: A Thief s End for $249, a discount of roughly $50, with a $30 gift card. PS4 and Xbox One controllers had starting prices of $39. It also had a Forza Horizon 2 Xbox 360 bundle for $129, a $50 discount. It also had the New Nintendo 3DS Super Mario for $99. Last year, Walmart offered the Xbox One bundle with Microsoft s Gears of War: Ultimate Edition for $300, a $50 discount, with a $30 gift card. It had the PS4 bundle with Sony s Uncharted: The Nathan Drake Collection for $300, a $50 discount. Games at the $8 price point included EA s Battlefield Hardline and Ubisoft s Assassin s Creed Syndicate. Games at the $15 price point included Bethesda Softworks Doom, EA s Star Wars Battlefront, and Ubisoft s Far Cry Primal and Tom Clancy s Rainbow Six Siege. Games at the $25 price point included Bethesda Softworks Fallout 4 and The Elder Scrolls V: Skyrim Special Edition, Take-Two s Grand Theft Auto V, and Ubisoft s Just Dance 2017 and Tom Clancy s The Division. Games at the $27 price point included EA s Battlefield 1, FIFA 17, Madden NFL 17, and Titanfall 2, and Take-Two s NBA 2K17 and WWE 2K17. Games at the $35 price point included Activision Blizzard s Destiny - The Collection and Overwatch Origins Edition, EA s NHL 17, Microsoft s Gears of War 4, and Take-Two s BioShock: The Collection and Mafia III. For $39, gamers could get a Starter Pack for Activision Blizzard s Skylanders Imaginators or Warner Bros. Lego Dimensions. It had Activision Blizzard s Guitar Hero Live Supreme Party Edition two pack for $49. It had Activision Blizzard s Call of Duty: Infinite Warfare Legacy Edition, which includes Modern Warfare Remastered, for $57, a $23 discount. Last year s sale price points included $8, $15, $25, $27 (including for many high-profile sports titles), and $35. Activision Blizzard s Guitar Hero Live was $69, a $31 discount, and Skylanders SuperChargers Starter Packs were $37, a $38 discount. Entertainment: Retail 3

4 CONSUMER ELECTRONICS DISCOUNTS Last Monday, Fitbit officially announced its Black Friday deals, which lasted from Thursday through the following Monday. Deals included $20 off the Charge 2 and $10 off the Flex 2, as well as $30 off the Alta, Blaze, and Surge. There were also savings on accessories. Best Buy Fitbit Best Buy offered the Alta at $100, a $30 discount, the Blaze at $150, a $50 discount, and the Charge 2 at $130, a $20 discount. Last year, it offered the Charge at $90, a $40 discount, the Charge HR at $120, a $30 discount, the Surge at $200, a $50 discount, and the Zip at $40, a $20 discount. GoPro Best Buy offered the HERO5 Black at its MSRP of $400 with a 64GB memory card and a $35 gift card. It offered a HERO4 Session bundle with a handler and a head strap for $180, a $70 discount. Last year, it offered the HERO4 Silver at its MSRP of $400 with a 64GB memory card and an $80 gift card. Best Buy offered the Ear Force XO One wired headset for $40, a $40 discount, with savings of up to $50 on select headsets. Last year, it had the same deal for the Ear Force XO One wired headset. GameStop GameStop offered $30 discounts on the Stealth 420X wireless headset at $120, the Stealth 520 wireless headset at $100, and the XO One wired headset at $50. Last year, it had the Ear Force XO One wired headset for $50, a $30 discount, and the Ear Force X12 wired headset for $40, a $20 discount. Target Fitbit Target offered the Alta at $100, a $30 discount, the Charge 2 at $130, a $20 discount, and the Charge HR at $90, a $40 discount. Last year, it offered the Charge HR at $119, a $31 discount, and the Surge at $200, a $50 discount. GoPro Target offered the HERO5 Black at its MSRP of $400 with a $60 gift card. It offered a HERO4 Session bundle with a handler and a 16GB memory card for $180, a $70 discount, with a $20 gift card. Last year, it offered the HERO+ LCD at its MSRP of $300 with a 64GB memory card and a $60 gift card. Target offered the Ear Force XO One wired headset for $45, a $35 discount. Last year, it had the same deal for the Ear Force XO One wired headset. Walmart Fitbit Walmart offered the Alta at $99, a $30 discount, the Charge 2 at $129, a $20 discount, and the Flex 2 at $69, a $30 discount. Last year, it offered the Charge HR at $119, a $30 discount, the Flex at $59, a $40 discount, and the Zip at $39, a $20 discount. GoPro Walmart offered a HERO4 Session bundle with a handler and a 16GB memory card for $179, a roughly $70 discount. Walmart offered the Recon 50P wired headset for $25, a discount of roughly $15. Entertainment: Retail 4

5 Covered Companies Mentioned in this Report (priced as of the market close on November 25, 2016) COMPANY TICKER RATING PRICE PRICE TARGET ACTIVISION BLIZZARD ATVI OUTPERFORM $37.22 $53 BEST BUY BBY UNDERPERFORM $46.58 $24.50 ELECTRONIC ARTS EA OUTPERFORM $79.17 $95 FITBIT FIT NEUTRAL $8.51 $10 GAMESTOP GME OUTPERFORM $25.82 $30 GOPRO GPRO NEUTRAL $9.89 $9 NINTENDO 7974.JP NEUTRAL 27,865 15,000 TAKE-TWO INTERACTIVE TTWO NEUTRAL $48.81 $48 TURTLE BEACH HEAR OUTPERFORM $1.49 $1.50 UBISOFT ENTERTAINMENT UBI.FP OUTPERFORM Analyst Certification I, Michael Pachter, Nick McKay, Alicia Reese, certify that the views expressed in this report accurately reflect my personal opinion and that I have not and will not, directly or indirectly, receive compensation or other payments in connection with my specific recommendations or views contained in this report. Disclosure information regarding historical ratings and price targets is available at Investment Rating System: Outperform: Expect the total return of the stock to outperform relative to the median total return of the analyst s (or the analyst s team) coverage universe over the next 6-12 months. Neutral: Expect the total return of the stock to perform in-line with the median total return of the analyst s (or the analyst s team) coverage universe over the next 6-12 months. Underperform: Expect the total return of the stock to underperform relative to the median total return of the analyst s (or the analyst s team) coverage universe over the next 6-12 months. The Investment Ratings are based on the expected performance of a stock (based on anticipated total return to price target) relative to the other stocks in the analyst s coverage universe (or the analyst s team coverage).* Rating Distribution (as of September 30, 2016) Outperform:55% Neutral: 42% Underperform: 3% Investment Banking Relationships (as of September 30, 2016) Outperform:16% Neutral: 2% Underperform: 0% The Distribution of Ratings is required by FINRA rules; however, WS stock ratings of Outperform, Neutral, and Underperform most closely conform to Buy, Hold, and Sell, respectively. Please note, however, the definitions are not the same as WS stock ratings are on a relative basis. The analysts responsible for preparing research reports do not receive compensation based on specific investment banking activity. The analysts receive compensation that is based upon various factors including WS total revenues, a portion of which are generated by WS investment banking activities. Wedbush Equity Research Disclosures as of November 28, 2016 Company Activision Blizzard 1 Best Buy 1 Electronic Arts 1 Fitbit, Inc. 1 GameStop 1 GoPro 1 Nintendo 1 Take-Two Interactive 1 Corp. 1 Ubisoft Entertainment Disclosure Research Disclosure Legend 1. WS makes a market in the securities of the subject company. 2. WS managed a public offering of securities within the last 12 months. 3. WS co-managed a public offering of securities within the last 12 months. 4. WS has received compensation for investment banking services within the last 12 months. Entertainment: Retail 5

6 5. WS provided investment banking services within the last 12 months. 6. WS is acting as financial advisor. 7. WS expects to receive compensation for investment banking services within the next 3 months. 8. WS provided non-investment banking securities-related services within the past 12 months. 9. WS has received compensation for products and services other than investment banking services within the past 12 months. 10. The research analyst, a member of the research analyst s household, any associate of the research analyst, or any individual directly involved in the preparation of this report has a long position in the common stocks. 11. WS or one of its affiliates beneficially own 1% or more of the common equity securities. 12. The analyst maintains Contingent Value Rights that enables him/her to receive payments of cash upon the company s meeting certain clinical and regulatory milestones. Price Charts Wedbush disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA regulations. Price charts for companies initiated upon in the current quarter, and rating and target price changes occurring in the current quarter, will not be displayed until the following quarter. Additional information on recommended securities is available on request. * WS changed its rating system from (Strong Buy/Buy/Hold/Sell) to (Outperform/ Neutral/Underperform) on July 14, Please access the attached hyperlink for WS Coverage Universe: Applicable disclosure information is also available upon request by contacting Noeth Hing in the Research Department at (212) , by to noeth.hing@wedbush.com, or the Business Conduct Department at (213) You may also submit a written request to the following: Business Conduct Department, 1000 Wilshire Blvd., Los Angeles, CA OTHER DISCLOSURES RESEARCH DEPT. * (212) * EQUITY TRADING Los Angeles (213) / (800) * EQUITY SALES Los Angeles (800) CORPORATE HEADQUARTERS (213) The information herein is based on sources that we consider reliable, but its accuracy is not guaranteed. The information contained herein is not a representation by this corporation, nor is any recommendation made herein based on any privileged information. This information is not intended to be nor should it be relied upon as a complete record or analysis; neither is it an offer nor a solicitation of an offer to sell or buy any security mentioned herein. This firm, Wedbush Securities, its officers, employees, and members of their families, or any one or more of them, and its discretionary and advisory accounts, may have a position in any security discussed herein or in related securities and may make, from time to time, purchases or sales thereof in the open market or otherwise. The information and expressions of opinion contained herein are subject to change without further notice. The herein mentioned securities may be sold to or bought from customers on a principal basis by this firm. Additional information with respect to the information contained herein may be obtained upon request. Entertainment: Retail 6

7 EQUITY RESEARCH DEPARTMENT DIRECTOR OF RESEARCH Gil B. Luria (213) RETAIL AND CONSUMER TECHNOLOGY, INTERNET AND MEDIA HEALTHCARE Building Supplies/Materials Business Services/IT Services Biotechnology/Biopharmaceuticals Environmental Services Moshe Katri (212) David M. Nierengarten, Ph.D. (415) Al Kaschalk (213) Dilip Joseph (415) Misha Levental (213) Consumer Entertainment Products Robert Driscoll, Ph.D. (415) Nick McKay (213) Food and Beverage Michael Pachter (213) Heather Behanna, Ph.D. (415) Colin Radke, CFA (213) Alicia Reese (212) Emerging Pharmaceuticals Footwear and Apparel Enterprise Liana Moussatos, Ph.D. (415) Christopher Svezia (212) Steve Koenig (415) Kelechi Chikere, Ph.D. (415) Homebuilders Entertainment: Retail/Entertainment: Medical Devices Jay McCanless (212) Michael Pachter (213) Tao Levy (212) Nick McKay (213) Na Sun (212) Leisure Alicia Reese (212) James Hardiman, CFA CPA (212) Sean Wagner (212) Internet: ecommerce FINANCIAL INSTITUTIONS Aaron Turner (213) Restaurants Amir Chaudhri (213) Real Estate Finance and Financial Infrastructure Nick Setyan (213) Jason Weaver, CFA (212) Colin Radke, CFA (213) Internet: Media and Gaming Internet: Social Media, Advertising and Technology Regional Banks/Texas Banks Specialty Retail: Hardlines Michael Pachter (213) Peter J. Winter (212) Seth Basham, CFA (212) Nick McKay (213) David J. Chiaverini, CFA (212) Nathan Friedman (212) Alicia Reese (212) Specialty Finance Specialty Retail: Softlines Media Henry J. Coffey Jr., CFA (212) Morry Brown, CFA (213) James Dix, CFA (213) Taryn Kuida (213) Aria Ertefaie (212) Movies and Entertainment Michael Pachter (213) Alicia Reese (212) Nick McKay (213) Payments Gil B. Luria (213) Aaron Turner (213) Amir Chaudhri (213) EQUITY SALES EQUITY TRADING Los Angeles (213) / (800) Los Angeles (213) / (800) San Francisco (415) San Francisco (415) New York (212) New York (212) Boston (617) Boston (617) Minneapolis (213) Milwaukee (213) Chicago (213) CORPORATE HEADQUARTERS 1000 Wilshire Blvd., Los Angeles, CA Tel: (213)