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 April 1, 2025 was $145.67 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 212.90% per annum.
- EA price at the close of April 1, 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 = 4.4807
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(Y618)
= Exp(a + b × X618 + 2 × s)
= Exp(a + b × 896 + 2 × s)
= Exp(4.4807 + 0.0003 × 896 + 2 × 0.0534)
= Exp(4.8559)
= $128.50
Bottom border of price channel:
Exp(Y618)
= Exp(a + b × X618 – 2 × s)
= Exp(a + b × 896 – 2 × s)
= Exp(4.4807 + 0.0003 × 896 – 2 × 0.0534)
= Exp(4.6425)
= $103.80
January 22, 2025 calculations
Top border of price channel:
Exp(Y1,207)
= Exp(a + b × X1,207 + 2 × s)
= Exp(a + b × 1,756 + 2 × s)
= Exp(4.4807 + 0.0003 × 1,756 + 2 × 0.0534)
= Exp(5.1136)
= $166.28
Bottom border of price channel:
Exp(Y1,207)
= Exp(a + b × X1,207 – 2 × s)
= Exp(a + b × 1,756 – 2 × s)
= Exp(4.4807 + 0.0003 × 1,756 – 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 April 1, 2025 was $145.67 and was inside the primary price channel.
Secondary Trend
Start date: January 23, 2025
End date: April 1, 2025
a = -0.7102
b = 0.0031
s = 0.0234
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0031) – 1
= 212.90%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0234) – 1
= 9.80%
January 23, 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(-0.7102 + 0.0031 × 1,757 + 2 × 0.0234)
= Exp(4.8276)
= $124.91
Bottom border of price channel:
Exp(Y1,208)
= Exp(a + b × X1,208 – 2 × s)
= Exp(a + b × 1,757 – 2 × s)
= Exp(-0.7102 + 0.0031 × 1,757 – 2 × 0.0234)
= Exp(4.7342)
= $113.77
April 1, 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(-0.7102 + 0.0031 × 1,825 + 2 × 0.0234)
= Exp(5.0401)
= $154.49
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(-0.7102 + 0.0031 × 1,825 – 2 × 0.0234)
= Exp(4.9467)
= $140.71
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 212.90% per annum.
- EA price at the close of April 1, 2025 was inside the secondary price channel.