Electronic Arts Stock Price Prediction

EA Stock  USD 131.87  0.97  0.74%   
At this time, the relative strength index (RSI) of Electronic Arts' share price is approaching 45 suggesting that the stock is in nutural position, most likellhy at or near its support level. The main point of RSI analysis is to track how fast people are buying or selling Electronic Arts, making its price go up or down.

Oversold Vs Overbought

45

 
Oversold
 
Overbought
Electronic Arts stock price prediction is an act of determining the future value of Electronic Arts shares using few different conventional methods such as EPS estimation, analyst consensus, or fundamental intrinsic valuation. The successful prediction of Electronic Arts' future price could yield a significant profit. Please, note that this module is not intended to be used solely to calculate an intrinsic value of Electronic Arts and does not consider all of the tangible or intangible factors available from Electronic Arts' fundamental data. We analyze noise-free headlines and recent hype associated with Electronic Arts, which may create opportunities for some arbitrage if properly timed.
Below are the key fundamental drivers impacting Electronic Arts' stock price prediction:
Quarterly Earnings Growth
0.466
EPS Estimate Next Quarter
1.56
EPS Estimate Current Year
7.1
EPS Estimate Next Year
7.59
Wall Street Target Price
151.52
It is a matter of debate whether stock price prediction based on information in financial news can generate a strong buy or sell signal. We use our internally-built news screening methodology to estimate the value of Electronic Arts based on different types of headlines from major news networks to social media. The Electronic stock price prediction module provides an analysis of price elasticity to changes in media outlook on Electronic Arts over a specific investment horizon. Using Electronic Arts hype-based prediction, you can estimate the value of Electronic Arts from the perspective of Electronic Arts response to recently generated media hype and the effects of current headlines on its competitors. We also analyze overall investor sentiment towards Electronic Arts using Electronic Arts' stock options and short interest. It helps to benchmark the overall future attitude of investors towards Electronic using crowd psychology based on the activity and movement of Electronic Arts' stock price.

Electronic Arts Short Interest

A significant increase or decrease in Electronic Arts' short interest from the previous month could be a good indicator of investor sentiment towards Electronic. Short interest can provide insight into the potential direction of Electronic Arts stock and how bullish or bearish investors feel about the market overall. An investor who is long Electronic Arts may also wish to track short interest. As short interest increases, investors should be becoming more worried about Electronic Arts and may potentially protect profits, hedge Electronic Arts with its derivative instruments, or be ready for some potential downside.
200 Day MA
131.3908
Short Percent
0.0192
Short Ratio
2.31
Shares Short Prior Month
5.1 M
50 Day MA
137.548

Electronic Arts Hype to Price Pattern

Investor biases related to Electronic Arts' public news can be used to forecast risks associated with an investment in Electronic. The trend in average sentiment can be used to explain how an investor holding Electronic can time the market purely based on public headlines and social activities around Electronic Arts. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. The correlation of Electronic Arts' market sentiment to its price can help taders to make decisions based on the overall investors consensus about Electronic Arts.

Electronic Arts Implied Volatility

    
  29.75  
Electronic Arts' implied volatility exposes the market's sentiment of Electronic Arts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Electronic Arts' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Electronic Arts stock will not fluctuate a lot when Electronic Arts' options are near their expiration.
This module is based on analyzing investor sentiment around taking a position in Electronic Arts. This speculative approach is based exclusively on the idea that markets are driven by emotions such as investor fear and greed. The fear of missing out, i.e., FOMO, can cause potential investors in Electronic Arts to buy its stock at a price that has no basis in reality. In that case, they are not buying Electronic because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. On the other hand, investors will often sell stocks at prices well below their value during bear markets because they need to stop feeling the pain of losing money.

Electronic Arts after-hype prediction price

    
  USD 131.86  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.

Prediction based on Rule 16 of the current Electronic contract

Based on the Rule 16, the options market is currently suggesting that Electronic Arts will have an average daily up or down price movement of about 1.86% per day over the life of the 2024-03-28 option contract. With Electronic Arts trading at USD 131.87, that is roughly USD 2.45 . If you think that the market is fully incorporating Electronic Arts' daily price movement you should consider acquiring Electronic Arts options at the current volatility level of 29.75%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Check out Electronic Arts Basic Forecasting Models to cross-verify your projections.
For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Electronic Arts' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Intrinsic
Valuation
LowRealHigh
118.68139.15140.10
Details
Naive
Forecast
LowNextHigh
132.21133.16134.11
Details
28 Analysts
Consensus
LowTargetHigh
130.79143.73159.54
Details
Earnings
Estimates (0)
LowProjected EPSHigh
1.691.541.80
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Electronic Arts. Your research has to be compared to or analyzed against Electronic Arts' peers to derive any actionable benefits. When done correctly, Electronic Arts' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Electronic Arts.

Electronic Arts After-Hype Price Prediction Density Analysis

As far as predicting the price of Electronic Arts at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Electronic Arts or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Electronic Arts, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Electronic Arts Estimiated After-Hype Price Volatility

In the context of predicting Electronic Arts' stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Electronic Arts' historical news coverage. Electronic Arts' after-hype downside and upside margins for the prediction period are 130.91 and 132.81, respectively. We have considered Electronic Arts' daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
131.87
130.91
Downside
131.86
After-hype Price
132.81
Upside
Electronic Arts is very steady at this time. Analysis and calculation of next after-hype price of Electronic Arts is based on 3 months time horizon.

Electronic Arts Stock Price Prediction Analysis

Have you ever been surprised when a price of a Company such as Electronic Arts is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Electronic Arts backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Electronic Arts, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.06 
0.95
  0.01 
  0.01 
11 Events / Month
4 Events / Month
In about 11 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
131.87
131.86
0.01 
527.78  
Notes

Electronic Arts Hype Timeline

As of March 28, 2024 Electronic Arts is listed for 131.87. The entity has historical hype elasticity of -0.01, and average elasticity to hype of competition of 0.01. Electronic is forecasted to decline in value after the next headline, with the price expected to drop to 131.86. The average volatility of media hype impact on the company price is over 100%. The price decline on the next news is expected to be -0.01%, whereas the daily expected return is currently at -0.06%. The volatility of related hype on Electronic Arts is about 413.04%, with the expected price after the next announcement by competition of 131.88. About 96.0% of the company shares are held by institutions such as insurance companies. The book value of Electronic Arts was currently reported as 28.09. The company has Price/Earnings To Growth (PEG) ratio of 1.28. Electronic Arts last dividend was issued on the 27th of February 2024. The entity had 2:1 split on the 18th of November 2003. Allowing for the 90-day total investment horizon the next forecasted press release will be in about 11 days.
Check out Electronic Arts Basic Forecasting Models to cross-verify your projections.
For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.

Electronic Arts Related Hype Analysis

Having access to credible news sources related to Electronic Arts' direct competition is more important than ever and may enhance your ability to predict Electronic Arts' future price movements. Getting to know how Electronic Arts rivals react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Electronic Arts may potentially react to the hype associated with one of its peers.

Electronic Arts Additional Predictive Modules

Most predictive techniques to examine Electronic price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Electronic using various technical indicators. When you analyze Electronic charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.

About Electronic Arts Predictive Indicators

The successful prediction of Electronic Arts stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Electronic Arts, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Electronic Arts based on analysis of Electronic Arts hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Electronic Arts's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Electronic Arts's related companies.
 2021 2022 2023 2024 (projected)
Price Earnings Ratio45.5441.637.4436.57
Short Term Coverage Ratios23.4423.4821.1422.19

Story Coverage note for Electronic Arts

The number of cover stories for Electronic Arts depends on current market conditions and Electronic Arts' risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Electronic Arts is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Electronic Arts' long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Electronic Arts Short Properties

Electronic Arts' future price predictability will typically decrease when Electronic Arts' long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Electronic Arts often depends not only on the future outlook of the potential Electronic Arts' investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Electronic Arts' indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding278 M
Cash And Short Term Investments2.8 B
When determining whether Electronic Arts offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Electronic Arts' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Electronic Arts Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Electronic Arts Stock:
Check out Electronic Arts Basic Forecasting Models to cross-verify your projections.
For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.
Note that the Electronic Arts information on this page should be used as a complementary analysis to other Electronic Arts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.
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Is Electronic Arts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.466
Dividend Share
0.76
Earnings Share
3.97
Revenue Per Share
28.177
Quarterly Revenue Growth
0.034
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.