Optimism Builds Around Outperforming Activision Blizzard, EA

Morgan Stanley handed out fresh "overweight" ratings on Activision Blizzard, Inc. (NASDAQ:ATVI) and Electronic Arts Inc. (NASDAQ:EA)

Sep 23, 2016 at 10:13 AM
facebook X logo linkedin

Video game stocks are off to a fast start, after receiving some positive analyst attention. In particular, Activision Blizzard, Inc. (NASDAQ:ATVI) and Electronic Arts Inc. (NASDAQ:EA) are both higher on the latest round of brokerage notes from Morgan Stanley.

Starting with ATVI, the stock is no stranger to optimism within the analyst community. After all, 11 of 15 brokerages rate the shares a "buy" or better, compared to four "holds" and not a single "sell" opinion. This glass-half-full approach is being echoed at Morgan Stanley, which started coverage on ATVI with an "overweight" rating.

On the charts, Activision Blizzard, Inc. is down 0.2% at $44.43 at last check, but hit yet another record high of $45.12 yesterday -- helping make sense of the analyst optimism. Brokerage firms aren't the only ones with lofty expectations, either. Options traders have bought to open 7.54 ATVI calls for every put during the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The corresponding call/put volume ratio ranks in the high 84th percentile of its annual range.

Similarly, EA's 10-day ISE/CBOE/PHLX call/put volume ratio of 7.10 checks in just 4 percentage points from a 12-month peak, suggesting traders are more bullish than usual toward the shares. Plus, among the 15 covering analysts, there are 12 "buy" or better endorsements, compared to three "holds" and not one "sell" rating. Now included among the brokerage firms drinking the proverbial Kool-Aid on EA is Morgan Stanley, which assumed coverage with an "overweight" recommendation.

The bullish note has Electronic Arts Inc. 0.7% higher at $83.74. In fact, the video game stock earlier touched an all-time high of $84.50, and has advanced nearly 22% on a year-to-date basis.

Schaeffer's Expiration Week Countdown subscribers just made 153% GAINS on Electronic Arts (EA) calls and 100% GAINS on Activision Blizzard (ATVI) calls! Sign up now for a trial subscription.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI