Electronic Arts's most recent trend suggests a bearish bias. One trading opportunity on Electronic Arts is a Bear Call Spread using a strike $96.50 short call and a strike $102.00 long call offers a potential 56.7% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $96.50 by expiration. The full premium credit of $1.99 would be kept by the premium seller. The risk of $3.51 would be incurred if the stock rose above the $102.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Electronic Arts is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Electronic Arts is bearish.
The RSI indicator is at 36.42 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Electronic Arts
3 Small- to Mid-Cap Video Game Stocks to Buy
Tue, 05 Mar 2019 19:40:32 +0000
The video game industry has been in a strange place since the release of Player Unknown's Battlegrounds in March 2017. Whenever an industry-wide step change takes place, it's almost always driven by a fear of missing out, or "FOMO." With PUBG, the gaming industry found "battle royale," its biggest genre hit since Minecraft. But amid all the battle royale madness, there are still appealing video game stocks to buy that don't rely on new titles within the BR genre for impressive gains.Investors just aren't paying much attention to them. And understandably so.The battle royale genre, which was popularized by Fortnite shortly after PUBG's release, has sent developers tripping over themselves to make the definitive BR title, and it has caused investors to take cash out of any video game investment threatened by Fortnite's dominance. Now, the copycats are here, and Electronic Arts (NASDAQ:EA) is up 22% so far in 2019, as it's the publisher behind trendy new battle royale contender Apex Legends.InvestorPlace – Stock Market News, Stock Advice & Trading TipsBut, as is characteristic of any "FOMO" play, the mere-exposure effect tends to lead gamers, developers and investors to all drink from the same pool of water. That is, the more popular a thing is, and the more we are exposed to that thing, the more we gravitate toward it, unconsciously or not. * 7 Chinese Stocks to Buy for the 2019 Rebound For investors, this is particularly disconcerting, as it means chasing areas of investment that have already peaked rather than making sound decisions for our long-term financial health. Think bitcoin. In response, I've put together this short, but vital, list of small- and mid-cap video game stocks that may have been overlooked. Each of these gaming stocks has a strong catalyst independent of the Fortnite/battle royale hysteria. Sea Ltd (SE): Battle Royale Meets eBaySource: Shutterstock You may not have heard of it, but Sea Ltd (NYSE:SE), the parent company of Garena, is responsible for the original mobile battle royale game, Free Fire, released around the same time as PUBG. As Garena's first in-house title, Free Fire has proven itself a monster hit. In fact, as of SE stock's most recent quarterly earnings statement, FF sports more than 350 million registered users, of whom 40 million are daily active users (DAUs). What's more, Garena's relationship with Tencent (OTCMKTS:TCEHY) has allowed SE stock to benefit from global video game sensations, including League of Legends.But all of this is just one segment of Garena's parent company, Sea Limited. In addition to digital entertainment, SE benefits greatly from e-commerce and digital financial services. In fact, its e-commerce business, Shopee, generated $3.4 billion in gross merchandise volume (GMV) and $127 million in sales for Q4, a year-over-year increase of 1,262%!Considering the success SE has had in diversifying its business, it's no wonder SE stock has nearly doubled this year. With momentum like this, it's not unusual for bullish analysts to revise their price targets, which currently average out to $24.67. Take-Two Interactive (TTWO): Playing By Its Own RulesSource: Via RockstarAside from Red Dead Redemption 2's Make It Count mode, Take-Two Interactive's (NASDAQ:TTWO) entire portfolio is free of battle royale games.In fact, TTWO's entire publishing methodology goes against modern games development … rather than releasing big tentpole titles on an annual schedule, Take-Two spends years cultivating franchises. It's the opposite of rival EA, which releases a new Call of Duty game every year without fail. And it's this alternative approach that has made Take-Two one of the best video game stocks to buy for quite some time now.TTWO's formula works, as the newest Red Dead shipped more than 23 million copies to retailers, and Q3 revenue jumped to $1.25 billion from $481 million. Further, management increased its outlook for the full year, citing a "record year" for bookings and cash. Despite this, TTWO stock is down nearly 20% year-to-date as investors had more lofty expectations. * 7 Stocks Under $10 You Shouldn't Buy Considering it has one of the most sought-after gaming portfolios in the industry, and Take-Two stock is considered a buyout target from a Big Tech company like Microsoft (NASDAQ:MSFT) or Amazon (NASDAQ:AMZN), TTWO appears oversold. If it can get to the consensus price target of $124.06, that would represent a near-40% gain from its current perch. Not too shabby. Glu Mobile (GLUU): Freemium for AllSource: Shutterstock Unlike the other video game stocks on this list, Glu Mobile (NASDAQ:GLUU) focuses its efforts on the freemium model of mobile gaming. Its specialty is in celebrity endorsements (think Kim Kardashian, Brittany Spears, etc.). But its latest bout of high-profile branding comes from none other than Disney (NYSE:DIS).Glu Mobile currently holds a license to develop games based on Disney and Pixar characters. And Darla Anderson, producer of the hit film Coco, has joined the board of Glu Mobile to help steer it in the right direction. Disney Sorcerer's Arena will be the first title to come out of the licensing agreement, but far from the last.Its recent strategical pivot, in fact, has led Glu Mobile back to profitability. In its most recent quarter, GLUU posted a loss of 1 cent vs. a loss of 29 cents a year ago. Revenue, too, increased by roughly $15 million in the quarter. Still, GLUU shares plummeted as forecast bookings of $88 million to $90 million fell short of expectations for $93.5 million. Consequently, GLUU stock is off 8% since Feb. 5.With a robust mobile gaming market as its tailwind, GLUU stock can run much further if its partnership with Disney takes off. And this isn't a bad spot to buy.John Kilhefner is the Deputy Managing Editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post 3 Small- to Mid-Cap Video Game Stocks to Buy appeared first on InvestorPlace.
EA’s Apex Legends May Be Retreating After a Hot Start
Tue, 05 Mar 2019 18:23:00 +0000
Fewer people seem to be watching streams of (EA)’ (EA) new battler Apex Legends since its hot start. In a Tuesday note, Cowen analyst Doug Creutz cited viewer data from (AMZN)-owned (AMZN) game streaming service Twitch by way of noting that initial enthusiasm for Apex Legends has dropped since its introduction last month while other games appear to be recovering. The Fortnite-targeting Apex Legends was a surprise launch from EA, and it was released just before its last quarterly financial results were announced.
Activision Stock May Be Down, but It’s Certainly Not Out
Tue, 05 Mar 2019 14:21:02 +0000
Sometimes, I find that other people have already expressed what I'm trying to find the words to say. Because quite honestly, the complete meltdown in Activision Blizzard (NASDAQ:ATVI) is just baffling. Despite its core strengths in the popular first-person shooter (FPS) genre, ATVI stock lost over 26% last year.Source: Shutterstock Fortunately, fellow InvestorPlace contributor Dana Blankenhorn knows exactly how I'm feeling. He likened Activision stock to Humphrey Bogart's The Harder They Fall. As Blankenhorn explains, the movie portrays a boxer who is set up to fail by his promoters. I can certainly see the analogy. He wrote:Unfortunately, like the fighter in the Bogart movie, the company had a glass jaw. It had no presence in a key segment of the fast-growing online game market, and Fortnite, created by privately-held Epic Games (in which Tencent Holdings (OTCMKTS:TCEHY) has a 40% stake) quickly knocked it out.InvestorPlace – Stock Market News, Stock Advice & Trading TipsI especially commiserate with my esteemed colleague because, like him, I also praised ATVI stock. Indeed, I went to bat for it more times than I care to admit. But beyond my personal misgivings, other factors cast a dark cloud on the famous game developer. * 7 Chinese Stocks to Buy for the 2019 Rebound Despite some positive takeaways off its fourth-quarter fiscal 2018 earnings report, Activision came up short in the content department. As Blankenhorn noted, the company had "just one of the ten best-selling games in 2018."That's a shocker because, as I mentioned earlier, ATVI stock is essentially a direct investment into FPS. Of course, the underlying company is perhaps best known for its Call of Duty series. For the most part, a new addition to the franchise is guaranteed money.Unfortunately, the tables turned last year due to Fortnite. If Activision can't respond effectively, Activision stock looks incredibly risky. Light at the End of the Tunnel for ATVI stockBoth Blankenhorn and I agree that the game-maker has serious challenges ahead. Where we split is in our forecasts. He wrote: "With few winners in hand and none in sight, Activision stock is a game I don't want to play."I respect his argument because let's face it: no one wants to get burned again from the same company. At the same time, I don't want to miss out on a potential comeback opportunity. This is especially pertinent since Activision's biggest headwind may fade into the background.One of the reasons why Fortnite devastated the video-game stalwarts like ATVI stock or Electronic Arts (NASDAQ:EA) is what I would term the "blitzkrieg effect." Basically, Epic Games released a viral hit that catapulted into a cultural phenomenon. No one anticipated such profound success, which invariably disrupted the gaming ecosystem.Not only that, Fortnite demonstrated the free-to-play (FTP) business model's viability. Rather than generating sales through downloads, the game itself is free. But to really enjoy it, players must make in-game purchases. Many gladly did so.But recent statistics suggest that Fortnite is losing its charm. For example, between January and June of last year, the number of Fortnite players jumped from 45 million to 125 million, or a 178% increase. But by November, while the game saw 200 million players, player growth slipped to 60%.I'm confident that growth trajectory will narrow further. As I recently reported, Electronic Arts introduced its own FTP game called Apex Legends. By all measures, Apex is a massive success, reaching 10 million players in record-breaking fashion.Therefore, Activision stock has two tailwinds. First, Fortnite's meteoric growth is noticeably softening. Second, rival EA proved that you can fight fire with fire, pitting one FTP game against another. The Bottom Line on Activision StockBack in my high school football days, I had my own Humphrey Bogart moment. Playing cornerback, I dove to tackle the opposing ballcarrier. Unfortunately, my teammate, playing linebacker, also had the same idea.I have zero recollection of the time my body went from one direction to the opposite. When I came to, I distinctly remember looking up at the sky, and at my teammates' faces. It took a while to get my bearings, but I eventually finished the game.Ultimately, I think this is the better analogy for ATVI stock. Sometimes, a hard right hook just knocks you into the next time zone. It's a scary moment for both stakeholders and the management team.But now, the question is whether Activision stock has what it takes to recover. Based on its new rival Epic losing steam, I like ATVI's chances here. EA has charted a blueprint to attack Epic. Given Activision's expertise in creating compelling content, investors can buy the discount with some measure of confidence.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post Activision Stock May Be Down, but It's Certainly Not Out appeared first on InvestorPlace.
Electronic Arts' (EA) Apex Legends on a Record-Breaking Spree
Tue, 05 Mar 2019 13:44:01 +0000
Electronic Arts' (EA) battle royale game Apex Legends continues to cross new milestones, amassing 50 million players within a month of its release.
The $200K Club: Broadcom joins these Bay Area tech companies paying a typical employee top dollar
Tue, 05 Mar 2019 12:30:00 +0000
A handful of Silicon Valley's largest technology companies, including Facebook and Broadcom, pay their median employee more than double the region's per capita income.
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