$EA is one of my favorite stocks to trade because it’s inexpensive and it moves around 2% per day. $EA just reported a good earnings but the stock is dropping because of the delay of one of their premier first person shooter games Battlefield. The game was scheduled to hit stores in time for the 2014 holiday season. Now the game is scheduled to come out at the beginning of 2015, and will miss the holiday shopping season. I think that played a big part in why the stock dropped, opening the door for investors to gobble up some shares on sale in my opinion. Let’s look at their chart.
You can see that for three quarters of the year year, $EA was trading flat until they had a nice spike on May 7 after they reported earnings. It ran up to a high of $38.00 but could not hold that price through earnings last week.
You can see it taking a fast dive down with some support around $28.00. I would start keeping an eye on this stock when it gets around $30.50. That’s because $EA will most likely fall until it fills that gap that it made on May 7 after earnings. From there, I would seriously consider establishing a position in this stock.
$EA has a lot of upside because of how well it’s positioned in the mobile gaming area, and also because of it’s new subscription gaming service coming to XBox. When Apple updates the Apple TV, $EA will benefit a lot because of Apple TV’s gaming capabilities. Not to mention the other tablets and streaming devices such as Amazon’s Fire TV that has very nice gaming capabilities. $EA could possibly open up it’s subscription gaming service to tablets and TV streaming devices as well, tapping into a new consumer base of people who do not own a Playstation or XBox, but do own an Apple TV, Fire TV or any other inexpensive device that can hook up to your TV.
$EA is positioned to take full advantage of the new way to play video games and purchasing this stock on sale around $30.50 will make your portfolio happy in the future.