Electronic Arts, Shares Dip Below 200-Day Moving Average
August 11, 2023
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Electronic Arts ($NASDAQ:EA), Inc., a leading video game publisher and developer based in Redwood City, California, saw its shares dip below their 200-day moving average on Thursday. This was unexpected news to many investors, who had been watching the company’s stock rise steadily. The company is well known for its popular titles like FIFA and Madden NFL, as well as for its mobile gaming franchises like Plants vs. Zombies and The Sims. EA also owns and operates EA Sports, a division which produces popular sports games such as NBA Live and NHL.
Despite the dip in its shares, investors remain confident that Electronic Arts’ portfolio of titles and franchises will continue to perform well in the future. The company has recently released several new titles, such as Star Wars Jedi: Fallen Order and Apex Legends, and is expecting strong sales for the upcoming holiday season. Many analysts are predicting that the company’s stock will eventually return to its previous highs and continue to grow.
Stock Price
EA opened at $124.0 and closed the day at $122.6, 1.0% lower than its previous closing price of $123.8. This marks the first time in over seven months that the company’s stock has gone below the 200-day moving average. Analysts attribute the decline to EA’s weak performance in the gaming industry, as well as increasing competition from rival companies. Despite this, EA remains one of the most successful video game publishers in the world and is likely to retain its position in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Electronic Arts. More…
| Total Revenues | Net Income | Net Margin |
| 7.58k | 893 | 12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Electronic Arts. More…
| Operations | Investing | Financing |
| 1.99k | -196 | -1.61k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Electronic Arts. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.08k | 5.75k | 26.95 |
Key Ratios Snapshot
Some of the financial key ratios for Electronic Arts are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.4% | 0.9% | 19.6% |
| FCF Margin | ROE | ROA |
| 23.7% | 12.7% | 7.1% |
Analysis
At GoodWhale, we’ve conducted an analysis of ELECTRONIC ARTS’s financials and found that it is a low risk investment in terms of financial and business aspects. We give ELECTRONIC ARTS a Risk Rating of 3, indicating that it is a safe bet for those considering investments in the company. After diving into the details further, we have identified one risk warning in their balance sheet that investors should be aware of. To help you make the most informed decision possible, we recommend that you become a registered user on our platform so you can access this warning and more. With all the information at your fingertips, you can feel more confident and understand more about ELECTRONIC ARTS’s financials before making any decisions. More…
Peers
Electronic Arts Inc is one of the leading game developers in the world. The company has been in operation for over three decades and has released some of the most popular video games in history. Electronic Arts Inc’s main competitors are Take-Two Interactive Software Inc, PlaySide Studios Ltd, and Gumi Inc.
– Take-Two Interactive Software Inc ($NASDAQ:TTWO)
Take-Two Interactive Software Inc is a publicly traded video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, itself composed of multiple studios. Its Grand Theft Auto, Red Dead, and NBA 2K franchises are among the most successful and well-known in the video game industry.
– PlaySide Studios Ltd ($ASX:PLY)
Sides Studios Ltd is a publicly traded company with a market capitalization of 215.5 million as of 2022. The company has a return on equity of 7.79%. Side Studios is a leading provider of 3D animation and visual effects for the film and television industry. The company has worked on some of the most popular films and television shows of the past decade, including The Lord of the Rings trilogy, The Chronicles of Narnia, and Game of Thrones.
– Gumi Inc ($TSE:3903)
Gumi Inc is a Japanese company that specializes in the development and publishing of mobile games. The company has a market cap of 27.96B as of 2022 and a Return on Equity of -33.77%. Gumi Inc’s games are available on both iOS and Android devices, and some of their most popular titles include Brave Frontier, Final Fantasy: Brave Exvius, and Attack on Titan: Assault.
Summary
Investors should take note of Electronic Arts, Inc. crossing below its 200 day moving average of $124.66 on Thursday. This could be a sign that the stock price is weakening and may continue to fall in the short-term.
However, it is important to consider the overall trend and other indicators such as sales and earnings before making any decisions on the stock. Investors should carefully review the company’s financial statements and research the company’s competitive position in the industry.
Additionally, a review of technical indicators such as support and resistance levels, momentum, volume and volatility can help investors better understand the short-term price movements. Ultimately, investors should do their own due diligence before deciding whether or not to invest in Electronic Arts, Inc.
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