MMR

This Insurance Stock Is Soaring to All-Time Highs

Electronic Arts stock is tanking after the company delayed its 'Star Wars' game

Managing Editor
Oct 18, 2017 at 3:00 PM
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The Dow is soaring today, topping 23,000 level and setting another intraday record in the process. Grocery stock Supervalu Inc. (NYSE:SVU) and video game maker Electronic Arts Inc. (NASDAQ:EA) are having tough days, while insurance issue Anthem Inc (NYSE:ANTM) toasts some good news. Here's a quick look at what is moving shares of SVU, EA, and ANTM.

SVU Stock Reverses Lower Despite Grocery Deal, Earnings Beat

Supervalu stock is down 9.6% to trade at $17.52, and earlier touched a a five-year low of $17.32, reversing an initial rally of as much as 11.8% after the company reported stronger-than-expected earnings and plans to buy Associated Grocers of Florida. It's unclear what prompted the sharp turnaround, but SVU is now short-sale restricted, and Morgan Stanley cut its price target on the grocery name to $20.50 from $22.50.

SVU stock has shed 46% year-to-date, and could be vulnerable to additional price-target reductions. The equity's average 12-month price target is $34.56, a nearly 50% premium from its current perch.

Electronic Arts Stock Dips Below Key Level

Electronic Arts delayed the release of "Star Wars: Battlefront II" game -- originally scheduled for fiscal-year 2019 -- and is shutting down Visceral Games. Cowen analyst Doug Creutz opined that the delay "works out to a $0.35-$0.45 EPS hit" for Electronic Arts. Meanwhile, EA stock also received a price-target cut to $126 from $128 at Morgan Stanley.

As a result, EA stock is currently down 3.1% to trade at $112.38, among the worst on the Nasdaq. The drop today has the shares on track to finish below their 100-day moving average, a key trendline, for the first time since January. Despite recent struggles, EA stock has nevertheless added 41% year-to-date, and analysts are still firmly in EA's corner. Of the 18 brokerages covering the video game stock, 15 rate the shares a "buy" or "strong buy."

Pharma Deal With CVS Has Anthem Stock At Record High

Anthem stock is up 2.9% to trade at $192.60, among the best on the New York Stock Exchange (NYSE), after announcing plans to launch its own pharmacy-benefits manager. Starting in 2020, CVS Health (CVS) will fill prescriptions and provide services to Anthem health plans and non-Anthem customers. ANTM stock earlier today reached a new all-time high of $199.23. The equity, which has added 34% year-to-date, is on track for its largest one-day gain since February.

A few recent options buyers may be kicking rocks. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ANTM sports a 10-day put/call volume ratio of 5.29, which ranks 1 percentage point from a 52 week high. This indicates that Anthem's long puts have rarely been more popular relative to calls in the past year.
 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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