Today we are watching…
1. Electronic Arts (#elecarts)
Every year, video-game studio Electronic Arts (EA) aims to thrill football fanatics with a new installment of its ‘FIFA’ franchise. The game didn’t go down so well last year, with EA stock crashing along with sales of the title, which haven’t truly recovered. However, the developers got a second bite at the cherry on Friday with the release of ‘FIFA 20.’ Gamers and investors waited with bated breath, and the reception so far has been mixed. Today, the market will catch up and either buy or sell that news. All being well, shareholders will make it through today’s session. Then, they can turn their attention to micro-transactions embedded in games, which are under scrutiny as a possible form of underage gambling. If secured the green light on those, the stock could return to previous highs.
2. Thor Industries (#tho)
Thor builds made-to-fit motorhomes, and that’s a tough business. While Americans are less enthusiastic about going on RV road trips, the trade war has squeezed profit margins wafer-thin. To stop the wheels completely falling off its stock, Thor has acquired a German competitor to increase revenues by about 25% today in its earnings report. That might appease investors, but it’s unlikely to prompt jubilation. Thor needs to end a four-quarter missing streak and finally beat analyst expectations, set at $1.48 in profit per share on $2.36 billion in revenue. Seen many camper vans and trailers on the roads recently? Think hard, because there’s a trade on the line here!