Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Electronic Arts Inc. (NASDAQ:EA) shares spiked after hours Tuesday and continued higher Wednesday on positive earnings, but Morgan Stanley’s still not buying.
The Rating
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Analyst Brian Nowak maintained an Equal-Weight rating on Electronic Arts and raised the price target from $120 to $126.
The Thesis
The company beat top- and bottom-line estimates by 3 percent and 2 percent, respectively, and Morgan Stanley attributed the performance to live services digital revenues.
“FIFA” and “Madden Ultimate Team” grew more quickly than forecasted, “Sims” outperformed with a pets and laundry expansion packs and the combined franchises helped drive revenues 31 percent higher than expected and up 39 percent year-over-year, according to Morgan Stanley.
At the same time, Electronic Arts indicated interest in leveraging tax reform on buybacks, dividends or acquisitions.
“With more clarity on potential shareholder return expected at [fiscal fourth-quarter 2018] earnings, this messaging is likely to limit near-term downside in the name,” Nowak said in a Wednesday note.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Although heartened by these circumstances, Morgan Stanley is waiting for a new title and the firm’s 2020 earnings driver before buying.
“While there isn't much tactical downside, we remain EW as EA's unfortunate string of missteps on its non-sports franchises — "Star Wars Battlefront" 1 and 2, the closure of Visceral games, "Mass Effect," and "TitanFall 2" — leave us without a clear catalyst beyond FY19, when EA begins lapping three consecutive years of strong "FIFA Ultimate Team" and the 2018 World Cup,” the analyst said.
Price Action
At the time of publication, shares were trading up 7.81 percent at $127.97.
Related Links:
Electronic Arts Upgraded After 'Star Wars' Backlash: Here's Why
Bernstein: Why Video Game Publishers Could Be 'The Perfect Media Companies'
Photo courtesy of Electronic Arts.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.