Stock Price Trends

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 March 31, 2025 was $144.52 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 215.55% per annum.
  • EA price at the close of March 31, 2025 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: September 15, 2022
End date: January 22, 2025

a = 4.4804

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(Y619)
= Exp(a + b × X619 + 2 × s)
= Exp(a + b × 897 + 2 × s)
= Exp(4.4804 + 0.0003 × 897 + 2 × 0.0534)
= Exp(4.8559)
= $128.50

Bottom border of price channel:

Exp(Y619)
= Exp(a + b × X619 – 2 × s)
= Exp(a + b × 897 – 2 × s)
= Exp(4.4804 + 0.0003 × 897 – 2 × 0.0534)
= Exp(4.6425)
= $103.80

January 22, 2025 calculations

Top border of price channel:

Exp(Y1,208)
= Exp(a + b × X1,208 + 2 × s)
= Exp(a + b × 1,757 + 2 × s)
= Exp(4.4804 + 0.0003 × 1,757 + 2 × 0.0534)
= Exp(5.1136)
= $166.28

Bottom border of price channel:

Exp(Y1,208)
= Exp(a + b × X1,208 – 2 × s)
= Exp(a + b × 1,757 – 2 × s)
= Exp(4.4804 + 0.0003 × 1,757 – 2 × 0.0534)
= Exp(4.9002)
= $134.32

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 11.56% per annum.
  • EA price at the close of March 31, 2025 was $144.52 and was inside the primary price channel.

Secondary Trend

Start date: January 23, 2025
End date: March 31, 2025

a = -0.7544

b = 0.0031

s = 0.0236

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0031) – 1
= 215.55%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0236) – 1
= 9.88%

January 23, 2025 calculations

Top border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 + 2 × s)
= Exp(a + b × 1,758 + 2 × s)
= Exp(-0.7544 + 0.0031 × 1,758 + 2 × 0.0236)
= Exp(4.8275)
= $124.90

Bottom border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 – 2 × s)
= Exp(a + b × 1,758 – 2 × s)
= Exp(-0.7544 + 0.0031 × 1,758 – 2 × 0.0236)
= Exp(4.7333)
= $113.67

March 31, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(-0.7544 + 0.0031 × 1,825 + 2 × 0.0236)
= Exp(5.0384)
= $154.23

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(-0.7544 + 0.0031 × 1,825 – 2 × 0.0236)
= Exp(4.9442)
= $140.36

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 215.55% per annum.
  • EA price at the close of March 31, 2025 was inside the secondary price channel.

See Also