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 11.56% per annum.
- EA price at the close of July 11, 2025 was $148.69 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 204.93% per annum.
- EA price at the close of July 11, 2025 was lower than the bottom border of the secondary price channel by $42.05 (22.05%). This indicates a possible reversal in the secondary trend direction.
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: September 15, 2022
End date: January 22, 2025
a = 4.5103
b = 0.0003
s = 0.0534
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 11.56%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0534) – 1
= 23.79%
September 15, 2022 calculations
Top border of price channel:
Exp(Y548)
= Exp(a + b × X548 + 2 × s)
= Exp(a + b × 793 + 2 × s)
= Exp(4.5103 + 0.0003 × 793 + 2 × 0.0534)
= Exp(4.8546)
= $128.33
Bottom border of price channel:
Exp(Y548)
= Exp(a + b × X548 – 2 × s)
= Exp(a + b × 793 – 2 × s)
= Exp(4.5103 + 0.0003 × 793 – 2 × 0.0534)
= Exp(4.6412)
= $103.67
January 22, 2025 calculations
Top border of price channel:
Exp(Y1,137)
= Exp(a + b × X1,137 + 2 × s)
= Exp(a + b × 1,653 + 2 × s)
= Exp(4.5103 + 0.0003 × 1,653 + 2 × 0.0534)
= Exp(5.1124)
= $166.06
Bottom border of price channel:
Exp(Y1,137)
= Exp(a + b × X1,137 – 2 × s)
= Exp(a + b × 1,653 – 2 × s)
= Exp(4.5103 + 0.0003 × 1,653 – 2 × 0.0534)
= Exp(4.8989)
= $134.15
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 11.56% per annum.
- EA price at the close of July 11, 2025 was $148.69 and was inside the primary price channel.
Secondary Trend
Start date: January 23, 2025
End date: April 3, 2025
a = -0.2710
b = 0.0031
s = 0.0233
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0031) – 1
= 204.93%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0233) – 1
= 9.75%
January 23, 2025 calculations
Top border of price channel:
Exp(Y1,138)
= Exp(a + b × X1,138 + 2 × s)
= Exp(a + b × 1,654 + 2 × s)
= Exp(-0.2710 + 0.0031 × 1,654 + 2 × 0.0233)
= Exp(4.8277)
= $124.93
Bottom border of price channel:
Exp(Y1,138)
= Exp(a + b × X1,138 – 2 × s)
= Exp(a + b × 1,654 – 2 × s)
= Exp(-0.2710 + 0.0031 × 1,654 – 2 × 0.0233)
= Exp(4.7347)
= $113.83
April 3, 2025 calculations
Top border of price channel:
Exp(Y1,187)
= Exp(a + b × X1,187 + 2 × s)
= Exp(a + b × 1,724 + 2 × s)
= Exp(-0.2710 + 0.0031 × 1,724 + 2 × 0.0233)
= Exp(5.0416)
= $154.71
Bottom border of price channel:
Exp(Y1,187)
= Exp(a + b × X1,187 – 2 × s)
= Exp(a + b × 1,724 – 2 × s)
= Exp(-0.2710 + 0.0031 × 1,724 – 2 × 0.0233)
= Exp(4.9485)
= $140.97
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 204.93% per annum.
- EA price at the close of July 11, 2025 was lower than the bottom border of the secondary price channel by $42.05 (22.05%). This indicates a possible reversal in the secondary trend direction.