Electronic Arts's most recent trend suggests a bullish bias. One trading opportunity on Electronic Arts is a Bull Put Spread using a strike $90.00 short put and a strike $80.00 long put offers a potential 8.11% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $90.00 by expiration. The full premium credit of $0.75 would be kept by the premium seller. The risk of $9.25 would be incurred if the stock dropped below the $80.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Electronic Arts is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Electronic Arts is bullish.
The RSI indicator is at 53.34 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
Are We in an eSports Boom, or an eSports Bubble?
Mon, 18 Mar 2019 23:12:00 +0000
ESports is big business, and it's only getting bigger. At the Game Developers Conference in San Francisco, the rapidly growing industry — where the opportunities lie, and just how much it's really worth — was one of the main topics for the game enthusiasts in attendance. To date, most eSports investment, as well as revenue, has been focused primarily in the U.S. and in Asia.
EA’s Strategy behind Making Apex Legends Successful
Mon, 18 Mar 2019 19:42:08 +0000
Gaming and Social Media: Facebook, Snapchat, Twitter, and EA(Continued from Prior Part)EA launches its latest titleGaming company Electronic Arts (EA) launched its battle royale shooter game, Apex Legends, on February 4. Adopting a different
2 Reasons Take-Two Stock Is the Easy Pick to Own in the Video-Game Business
Mon, 18 Mar 2019 14:09:34 +0000
The past six months have been tough ones for video-game stocks like Take-Two Interactive Software (NASDAQ:TTWO) and Activision Blizzard (NASDAQ:ATVI).Source: Via RockstarActivision shares are off nearly 50% from their September peak, while Take-Two stock is down about 35% during the same time period. Electronic Arts (NASDAQ:EA) has lost nearly a third of its value even after rebounding strongly from December's lows. * 7 Small-Cap Stocks That Make the Grade And to be fair, much of the stocks' plunge was deserved. Most of these names were overextended by the middle of last year, and investors were shocked to see just how easily the free online game Fortnite came out of nowhere and was so disruptive to the status quo.InvestorPlace – Stock Market News, Stock Advice & Trading TipsEverything about the video-game market is fluid, though, including its stocks. This dip, however, is an opportunity to step into the smallest but arguably the best-of-breed in the business… Take-Two stock. TTWO Wins the Console Loyalty WarsTake-Two is the name behind hits like Red Dead Redemption and the Grand Theft Auto series. Although its Grand Theft Auto franchise is the most successful video-game series ever in terms of revenue, TTWO has developed many fewer games than rivals like EA and Activision.TTWO also produces distinctly different kinds of game that may be counterintuitive on the surface. However, they are great money makers.Contrary to popular belief, gaming consoles like Microsoft's (NASDAQ:MSFT) Xbox and PlayStation from Sony (NYSE:SNE) are still a big deal. Although it is true that PC gaming is growing, console-play is also still growing, and its rising tide is lifting all boats.The industry's response to the expansion of the PC-games market has largely been to attempt to be all things to all people. EA now offers subscription-based access to PC-only games via its Origin Access program, while Microsoft now enables subscribers to its Game Pass service to access PC-based games.TTWO has tiptoed down the same path too, although not as much as its competitors. Over the course of the past three quarters, 85% of its revenue came from console players.It's a detail some investors find interesting, if not outright concerning. There's a method to Take-Two's madness, though.Rather than spreading its wings too far, the company has thus far focused on what it knows it does best: making great console games.A PC version of Grand Theft Auto V was eventually released, but it wasn't a priority. Meanwhile, although there are rumors that a PC version of Red Dead Redemption 2 will be released, it also doesn't appear to be a priority for the company.The strategy is effective and positive for Take-Two stock, even if it ultimately limits the company's top line. Staying in the Good Graces of GamersMost investors who aren't avid video-game players may not realize it, but regular players will readily recognize another not-so-subtle shift in the gaming business: the advent of in-game purchases called microtransactions. The latter phenomenon has grown from being a fun and easy way to enhance game-play for a couple bucks to a full-blown profit center in and of itself.The matter reached a fever-pitched frenzy in late-2017, after EA launched a new game. Gamers quickly learned the hard way that to be able to use some of the coolest weaponry or play as some of the coolest characters required either a massive amount of playing time or $80. That's more than buying the game cost.In-game purchases haven't gone away since then. Although most game developers have pushed them less aggressively recently, they're still a problem. The industry hasn't yet seemed to figure out what's fair when it comes to in-game purchases and where gamers draw the line.Take-Two has exercised considerably more restraint than its rivals have, however. Through the first nine months of the recently-ended fiscal year, only about one-third of the company's revenue came from what TTWO described as "recurrent consumer spending." The other two-thirds was driven by selling games.For perspective, a year ago Activision Blizzard reported that it had taken in more money from microtransactions than it did from actually selling video games.Many players claim they don't like the new normal, and some vowed to boycott EA in response to what they saw as its overly aggressive microtransaction tactics. But most complainers never follow through on their promises.On the flip side, it's also quite likely that many gamers haven't complained — vocally — at all, yet gravitate toward games like Take-Two's that don't cost quite so much to make the most of and are seen as a much better value. If that's the case, it's certainly a positive attribute for Take-Two and Take-Two stockTTWO CEO Strauss Zelnick has made a point of advancing the microtransaction minimization strategy explaining last year "Are you a monetization company or are you an entertainment company? We're an entertainment company and when we get that right, everything else flows from it." The Bottom Line on Take-Two StockWhile TTWO has worked its way into the upper echelon of game-publishing outfits by being the least typical company in the business, it's not bulletproof. It suffers the same cyclical swings that its rivals and console technologies do. The recent selloff of Take-Two stock illustrates that point.Nevertheless, Take-Two seems to fare better against headwinds than its rivals, and Take-Two stock bounces back better than the shares of its rivals do when disruptions like Fortnite come down the pike.Not every investor has to own Take-Two stock. But for investors who have to own a video-gaming name, Take-Two stock is an easy name to buy and just let simmer. It's even easier to buy TTWO stock on a dip like the one it just experienced.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post 2 Reasons Take-Two Stock Is the Easy Pick to Own in the Video-Game Business appeared first on InvestorPlace.
Electronic Arts Should Be Buying Back Way More EA Stock
Mon, 18 Mar 2019 13:43:00 +0000
If you're a long-term owner of Electronic Arts (NASDAQ:EA), the volatility exhibited by EA stock since announcing Q3 2019 earnings is enough to drive a teetotaler to drink.Source: Electronic ArtsRather than address whether you should be buying EA stock at under $100 (I recommended investors consider it earlier in March) I'd like to address whether the company should be buying back its stock at current prices. The Argument for Buybacks of EA StockFirst, if you do own EA stock, you better hope Electronic Arts was buying it shares in the aftermath of its third-quarter earnings miss. The company's shares dropped more than 13% February 6 on the news, EA stock's worst single-day performance in over a decade.InvestorPlace – Stock Market News, Stock Advice & Trading TipsAlthough it took the company's stock only two days of trading to recover, jumping from $80.21 after the Feb. 6 close to $97.24 two days later, a 5% increase from its February 5 closing price of $92.52. At the end of the third quarter, Electronic Arts had $1.59 billion left of its $2.4 billion share repurchase program initiated in May 2018. In the first nine months of fiscal 2019, Electronics repurchased 10.4 million of its shares for $1.1 billion, an average price per share of $108.53. * 7 Small-Cap Stocks That Make the Grade So, if the company were willing to buy back more than a billion dollars of its stock at prices well above $100, I would argue that it should spend at least that to buy EA stock at prices below $100. For example, let's assume that it invested an additional $1.1 billion at a share price halfway between $80.21 and $92.52. At $87.37 a share, Electronic Arts would have repurchased 12.7 million shares, an additional 24% from the number it acquired in the first nine months of fiscal 2019. That's a nice thought, but in the real world, it would never happen for two reasons. First, it's unlikely that EA is set up to act this quickly, given its share repurchase history. Secondly, it's averaging approximately 1.2 million shares a month so far in fiscal 2019, well below the theoretical amount of 12.7 million shares from above. It's a nice thought, just the same. The Argument Against EA Share RepurchasesMost companies do a terrible job repurchasing shares. For every example you can give me of a company that's managed to buy back its stock near the 52-week low, I'll give you ten that bought closer to the 52-week high. How did EA do through the first nine months of fiscal 2019?Between March 31, 2018, and December 31, 2018, it had a high of $151.26 (July 13) and a low of $73.91 (December 26), for a midpoint of $112.59 a share. The company paid 3.6% less than its midpoint, a decent, if not spectacular job of buying back its stock. The question that I would have is whether it can continue to buy below its midpoint. Most companies, in my experience, can't, which would suggest the funds would be better used continuing to develop additional free-to-play games. The VerdictLong term, I think $108.53 a share paid by Electronic Arts for its stock will look like an astute investment. Below this point, I see no reason why the company shouldn't be buying back its stock by the boatload. Buy away, EA, buy away. As of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Single-Digit P/E Stocks With Massive Upside * 7 Best Quantum Computing Stocks Trading Today Compare Brokers The post Electronic Arts Should Be Buying Back Way More EA Stock appeared first on InvestorPlace.
2 Tech Stocks I'd Buy Right Now
Sat, 16 Mar 2019 14:45:00 +0000
These two video game-related companies are great buys at today's prices.
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