This week is the turning point of Electronic Arts (NASDAQ: EA). Take a look at what Wall Street and other investors expect, EA stock charts, and event risk exposure.

Even if it doesn't happen immediately, EA shares are overvalued
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Shares of video game giant EA will be booked for the second quarter on Tuesday night. The companies behind the popular license franchise from Star Wars to The Sims, well-played FIFA and NFL titles, and a powerful company in the fast-growing esports space Expected to generate a cent profit. Based on consent estimates. . Sales are estimated at $ 1.2 billion.

By comparison, Electric Arts shares were 97 cents in the second quarter of 2018, 11 cents higher than expected earnings in 2019. At the same time, revenue is not expected to change from last year. For clarity, EA development has slowed. But the global game market is still a big company.

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The gaming industry is worth about $ 135 billion and is growing at single digits. And Electronic Arts has established itself as a solid champion in space. But some are concerned, such as the investor Neil Thomas Neal. Thomas is worried about the valuation of EA shares and the market capitalization of $ 28 billion. This is too big for Disney to buy (NYSE: DIS). Last week, Berkeley analyst Deepak Mattibanan cut stocks because of concerns that Electronic Arts needed an unauthorized hit game.

Regardless, concerns about EA shares seem unfair. As a result, the share of EA is similar to that of Activision Blizzard (NASDAQ: ATVI) and Low Take to Interactive (NASDAQ: TTWO) partners. In addition, with a 19x forward gain, a 9% increase next year, and massive cash flow forecasts, there is no need to acquire EA shares.

In addition, thanks to Disney's license for EA's popular free games Apex Legends 3 and 2023, Star Wars: The Jedi: The Fallen Order will be released in mid-November. Currently an electronic art game.

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 Stock Chart
Price charts are another reason why we are optimistic about EA stocks. Electronic Arts' share is declining for the majority of 2019, but following the large adjusted bear market in 2018, this is declining in the major long-term Fibonacci support sector.

The explanation for the near-channel resistance success shows that the advisor has reached a new maximum from the beginning of the year and is steadily increasing to the right of the larger reformer base.

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After revenue, this event is expected to rapidly change the nature of electronic art sharing. EA seems to be relieved long before the event because it shows that it is a volatile engine after quarterly reports and has the ability to easily overcome channel resistance.

Nevertheless, the reaction to profits works in both directions, and resistance is still a price chart constraint until it is overcome. Investors who are happy with such risks prefer to approach risk with a spread of $ 105/110 in December rather than buying EA shares for the event.

This particular vertical is sold for $ 96.85 in a 90 cent Electronic Arts stake. Depending on the situation, the risk is limited to less than 1% ownership of advisory shares, but the potential return is $ 4.10 and the maximum yield is 455 if shares rise to 13.50% in the two months after expiration. 

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