EA's Struggling Soccer Game ⚽

And, Knight-Swift's "diversified business."

January 23, 2025

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Today is Thursday, January 23, 2025.

The Early Bird Index today is 82.54

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EA's Struggling Soccer Game ⚽

Electronic Arts (Nasdaq: EA) plunged 11.56% in after-hours trading on Wednesday after lowering its business outlook due to lagging video game sales.

Details: There was a decline in live services net bookings in the quarter, which EA blamed on its struggling soccer franchise, called Global Football. Dragon Age, a fantasy role-playing video game, is also seeing a decline of nearly 50% in players.

  • EA said net bookings will be around $2.2 billion in the quarter, which was lower than expected.

Stock Price: EA’s stock started 2024 strong but fell during the holidays. It is only up 3.47% in the last 12 months.

Early Bird’s Nest Egg Gains: Video game sales have slowed down across the industry since late 2024 due to market saturation, decreased discretionary spending, increased competition, and stagnation in the console market.

Final Thoughts: EA reports financial earnings results on February 4.

PRESENTED BY MASTERWORKS

Everyday investors net +$60M in proceeds from the sale of exclusive assets

From CEOs to shop owners, investors in Masterworks’ art offerings have received more than +$60,000,000 in total net proceeds to date (including principal) across their 23 exits.*

Surprised that so many people are interested in art investing? Bank of America recently found 83% of wealthy American investors 43 and under already collect, or want to. Normally, only the top 1% of investors would be able to diversify with art like Picassos and Banksys. But with Masterworks, you can easily diversify into this asset class without needing millions, or art expertise.

With a team that’s been working since 2019, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held for longer than one year).

The content is not intended to provide legal, tax, or investment advice.

No money is being solicited or will be accepted until the offering statement for a particular offering has been qualified by the SEC. Offers may be revoked at any time. Contacting Masterworks involves no commitment or obligation.

“Net Annualized Return” refers to the annualized internal rate of return net of all fees and expenses, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. For additional information regarding the calculation of IRR for a particular investment in an artwork that has been sold, a reconciliation will be filed as an exhibit to Form 1-U and will be available on the SEC’s website. Masterworks has realized illustrative annualized net returns of 17.6% (1067 days held), 17.8% (672 days held), and 21.5% (638 days held) on 13 works held longer than one year (not inclusive of works held less than one year and unsold works).

*“Net proceeds” represents the total liquidation proceeds distributed back to investors, net of all fees, expenses and proceeds reinvested in Masterworks offerings, of all works Masterworks has exited to date. This metric is not considered a presentation of performance but rather a mathematical figure that displays a platform metric on size, scale, and operation of the platform.

Notables

Notable Earnings Today: Texas Instruments (Nasdaq: TXN), American Airlines (Nasdaq: AAL), Intuitive Surgical (Nasdaq: ISRG), CSX (Nasdaq: CSX), Freeport-McMoRan (NYSE: FCX), McCormick (NYSE: MKC), GE Aerospace (NYSE: GE), Texas Capital (Nasdaq: TCBI), Elevance Health (NYSE: ELV), Columbia Banking (Nasdaq: COLB), First Financial Bancorp (Nasdaq: FFBC), Alaska Air Group (NYSE: ALK), Union Pacific (NYSE: UNP), East West Banc (Nasdaq: EWBC), Banc of California (NYSE: BANC), Associated Banc-Corp (NYSE: ASB), Atlantic Union Bankshares (NYSE: AUB), Business First Bancshares (Nasdaq: BFST), Customers Bancorp (NYSE: CUBI), First Bancorp (NYSE: FBP), GATX (NYSE: GATX), Glacier Bancorp (NYSE: GBCI), Metropolitan Bank (NYSE: MCB), Northern Trust (Nasdaq: NTRS), Pacific Premier (Nasdaq; PPBI), Sallie Mae (Nasdaq: SLM), SB Financial Group (Nasdaq: SBFG), South State (NYSE: SSB), TAL Education Group (NYSE: TAL), Valley National (Nasdaq: VLY), WNS (NYSE: WNS).

Notable IPOs Today: Skyline Builders Group Holding Limited Class A Ordinary Shares (Nasdaq: SKBL), Thornburg International Growth Fund ETF (Nasdaq: TXUG), Columbus Acquisition Corp Unit (Nasdaq: COLAU).

Notable Equity Crowdfunding Campaigns Ending Today: Base8 (Republic), Jippi (Timestamp), Blue Dove Coffee (SMBX), Hammer & Nails Willow Glen (SMBX).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Crude Oil Inventories (12:00 p.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Knight-Swift's "Diversified Business"

Despite posting mixed financial results on Wednesday, Knight-Swift Transportation (NYSE: KNX) jumped 5.45% in after-hours trading.

Financials: Knight-Swift reported earnings of 36 cents per share in the past quarter, which was better than expected. But revenue was just $1.86 billion, which was lower than expected.

Quote: “The fourth quarter showed the benefits of our diversified business model, as improvement in our truckload segment offset cost headwinds from the significant expansion in our LTL segment.” - CEO Adam Miller.

Final Thoughts: Investors were encouraged by Knight-Swift’s results and future outlook.

AST SpaceMobile’s Convertible Note Offering

AST SpaceMobile (Nasdaq: ASTS) shares decreased 12.67% in after-hours trading on Wednesday after announcing a private offering of convertible senior notes.

Final Thoughts: The stock is still up 600% (wow!) in the last 12 months.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.