Score 9.1 (out of 10): ELECTRONIC ARTS poised to seasonally rally by +16.2% during the next 90 days.

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What’s Going On Here?

ELECTRONIC ARTS has successfully appealed a 10m euro fine (11m USD) levied against it in the Netherlands over loot boxes in FIFA Ultimate Team.

Why Now?

ELECTRONIC ARTS INC indicates an interesting 90 days seasonal set up. During similar occasions, ELECTRONIC ARTS INC shares had a median return of +16.2% – based on 9 historical occasions with 8 of those showing positive returns (89%). This buy signal for ELECTRONIC ARTS INC received a high score of 9.1 (out of 10). This insight was generated with last price of 122.33.

What’s This Company About?

ELECTRONIC ARTS INC is in the Entertainment Software business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: EA US.

What’s My Risk / Reward and Time Horizon?

We found 90 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 142.18 (+16.2%) has been reached. Based on ELECTRONIC ARTS INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 118.23 (last price at 122.33), which is equivalent to a -3.4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

11.7% (March-2021), 18.5% (March-2020), -1.9% (March-2019), 7.3% (March-2018), 26.2% (March-2017), 19.3% (March- 2016), 14% (March-2015), 19.9% (March-2014), 23.4% (March-2013)

Historical Chart:

Summary:

NameELECTRONIC ARTS
ViewUp
Star (1 to 10)9.1
Target+16.2%
Time90 days
Hist Rate89%

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