Electronic Arts Inc (EA)
Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 14.41% per annum.
- EA price at the close of November 19, 2024 was $166.13 and was higher than the top border of the primary price channel by $2.82 (1.73%).
- The secondary trend is increasing.
- The growth rate of the secondary trend is 642.65% per annum.
- EA price at the close of November 19, 2024 was inside the secondary price channel.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of EA price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: February 1, 2023
End date: November 19, 2024
a = 4.3274
b = 0.0004
s = 0.0474
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 14.41%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0474) – 1
= 20.86%
February 1, 2023 calculations
Top border of price channel:
Exp(Y804)
= Exp(a + b × X804 + 2 × s)
= Exp(a + b × 1,169 + 2 × s)
= Exp(4.3274 + 0.0004 × 1,169 + 2 × 0.0474)
= Exp(4.8533)
= $128.16
Bottom border of price channel:
Exp(Y804)
= Exp(a + b × X804 – 2 × s)
= Exp(a + b × 1,169 – 2 × s)
= Exp(4.3274 + 0.0004 × 1,169 – 2 × 0.0474)
= Exp(4.6638)
= $106.04
November 19, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(4.3274 + 0.0004 × 1,826 + 2 × 0.0474)
= Exp(5.0957)
= $163.31
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(4.3274 + 0.0004 × 1,826 – 2 × 0.0474)
= Exp(4.9062)
= $135.12
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 14.41% per annum.
- EA price at the close of November 19, 2024 was $166.13 and was higher than the top border of the primary price channel by $2.82 (1.73%).
Secondary Trend
Start date: October 22, 2024
End date: November 19, 2024
a = -4.9121
b = 0.0055
s = 0.0127
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0055) – 1
= 642.65%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0127) – 1
= 5.20%
October 22, 2024 calculations
Top border of price channel:
Exp(Y1,237)
= Exp(a + b × X1,237 + 2 × s)
= Exp(a + b × 1,798 + 2 × s)
= Exp(-4.9121 + 0.0055 × 1,798 + 2 × 0.0127)
= Exp(4.9902)
= $146.97
Bottom border of price channel:
Exp(Y1,237)
= Exp(a + b × X1,237 – 2 × s)
= Exp(a + b × 1,798 – 2 × s)
= Exp(-4.9121 + 0.0055 × 1,798 – 2 × 0.0127)
= Exp(4.9396)
= $139.71
November 19, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(-4.9121 + 0.0055 × 1,826 + 2 × 0.0127)
= Exp(5.1441)
= $171.41
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(-4.9121 + 0.0055 × 1,826 – 2 × 0.0127)
= Exp(5.0934)
= $162.94
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 642.65% per annum.
- EA price at the close of November 19, 2024 was inside the secondary price channel.