ONLINE FOREX BROKER
2021-11-02 • Updated
Activision and EA are in Game
As the earnings season comes to its end, there are still companies worth looking for. Today Activision Blizzard and Electronic Arts are in the limelight of our analysis.
Over the last year gaming industry has increased even more and is expected to be worth $256 billion by 2025. Back in 2019, this figure was around $150 billion. This is almost 10% annual growth. Let’s run through the nearest reports from the biggest gaming companies.
Activision Blizzard (ATVI) is scheduled to announce Q3 earnings results on Tuesday, November 2, 23:05 GMT+2. The consensus EPS estimate is $0.70, and the consensus Revenue Estimate is $1.88 billion. Over the last months, the company faced lots of claims on discrimination and abuse. The Equal Employment Opportunity Commission had accused the game company and ATVI has settled an internal investigation that costs $18 million.
However, ATVI has beaten estimates on EPS and revenue each time for the last 2 years. Despite economic reopening, video gaming engagement still remains high thereby pushing profits higher. The pressure on sales is present only due to supply shortages of the next-gen gaming consoles. Another possible bullish factor is that CEO Bobby Kotick took a pay cut ahead of the earnings report making it obvious that he is taking measures to address the publisher's problems.
From the technical side, the company has formed inversed head and shoulders pattern. The retest of the shoulders line is also here, and amid a good report, the upside potential can be huge. However, we would recommend you wait for the earnings result, as trading before the report is more likely gambling.
ATVI daily chart
Resistance: 82.0; 83.5; 86.3
Support: 75.0; 72.0
Electronic Arts (EA) is scheduled to announce Q2 earnings results on Wednesday, November 3, 23:00 GMT+2. The consensus EPS estimate is $1.15, and the consensus Revenue Estimate is $1.74 billion. The sales increased significantly from the year before because of FIFA 2021 outperformance. Just like with ATVI, EA is feeling pressure from supply shortages, but the level of sales remains high. If the company can maintain that momentum when it reports other quarterly earnings, it will ease investor concerns that revenue would drop when people have more entertainment options away from home.
Electronic Arts and FIFA created a $20B video game empire. But the end is near. FIFA wants more money for the license, and EA wants the right to use the FIFA name for new ventures like video game tournaments and non-fungible tokens (NFT). For now, it looks like EA will have to change the name for the soccer franchise. Potentially it may be “EA Sports F.C.”. However, Electronic Arts is in a strong position with over 300 licensing agreements, including one with UEFA. This uncertainty may affect badly on the price, even though there weren’t any trend movements for more than a year.
If to look at the chart, the consolidation went long. Although we saw a vast bearish swing a month ago and as most of the stop losses were eliminated by it, we suppose it is time for EA to surge. But wait for the report. Just as always it may surprise everyone.
EA daily chart
Resistance: 144.0; 147.0; 149.0; 150.0
Support: 133.0; 126.0
At the end of the day, most analytics think both stocks should rise in the longer term. For ATVI 31 out of 33 analytics marked the stock as “Buy”, and for EA “Buy” mark has been given by 23 out of 32 analysts.
The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
In a call scheduled for January 25, 00:30 am GMT+2, the Tesla Inc. team will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
