As Cyber Monday Grows, Grab a Winner

Cyber Monday’s growing influence over retail sales encompasses both the sale of physical goods from retailers online, as well as services that can be made online. The latter category, without storage or shipping costs, can be a higher profit-margin center for companies with such services.

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  • With this year’s holiday spending underway, a few early winners from Cyber Monday have emerged. And investing in those companies could make profits even beyond the holiday season.

    For instance, Electronic Arts (EA) saw some best-selling games this Cyber Monday, thanks to FIFA 23 and Madden 23, the annual soccer and football games. The video game studio has a number of other, non-sports games that are also on track for strong sales this holiday season.

    Shares are flat for the video game publisher over the past year, with a modest increase in revenue and earnings. Yet shares trade for 16 times forward earnings, a relatively inexpensive price for a major game studio.

    Action to take: Investors should consider shares here. Besides the potential strong holiday sales, shares yield 0.6 percent here, but with a low payout with room to grow.

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  • For traders, the March 2023 $135 calls, last going for about $5.40, offer mid-double-digit returns in the coming weeks. That’s near the higher end of the range where EA shares have traded in the past year, so if the share price does near $135, look to take profits.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.