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Electronic Arts Inc (EA) Stock

Electronic Arts Inc Stock Details, Movements and Public Alerts

Electronic Arts Inc (EA): The $40B Gaming Giant Rebuilding After the FIFA Divorce

When Andrew Wilson took the helm at EA in 2013, he inherited a company dependent on annual franchise releases with limited recurring revenue. Today, under his leadership, Electronic Arts has transformed into a live-service powerhouse generating billions from Ultimate Team modes, Apex Legends battle royale, and The Sims 4. The 2023 split from FIFA—ending a 30-year partnership—initially spooked investors, but EA Sports FC 24 has proven the EA brand transcends FIFA licensing. With a forward P/E of 24.3x (versus 58x trailing) and accelerating bookings growth, Wilson's strategic pivot to owned IP and live services positions EA for sustained margin expansion and multiple re-rating.

52-Week Range

$204.64 - $114.66

-0.22% from high · +78.09% from low

Avg Daily Volume

5,158,818

20-day average

100-day avg: 3,358,149

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

59.20

Above market average

Forward P/E

22.57

Earnings expected to grow

PEG Ratio

2.07

Potentially overvalued

Price to Book

8.49

EV/EBITDA

31.19

EPS (TTM)

$3.44

Price to Sales

6.99

Beta

0.76

Less volatile than market

How is EA valued relative to its earnings and growth?
Electronic Arts Inc trades at a P/E ratio of 59.20, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 22.57 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.07 indicates a premium valuation even accounting for growth.
What is EA's risk profile compared to the market?
With a beta of 0.76, Electronic Arts Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 8.49 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

12.10%

Operating Margin

10.90%

EBITDA

$1.57B

Return on Equity

13.20%

Return on Assets

6.27%

Revenue Growth (YoY)

-9.20%

Earnings Growth (YoY)

-51.40%

How profitable and efficient is EA's business model?
Electronic Arts Inc achieves a profit margin of 12.10%, meaning it retains $12.10 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 10.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 13.20% and ROA at 6.27%, the company achieves moderate returns on invested capital.
What are EA's recent growth trends?
Electronic Arts Inc's revenue declined by 9.20% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 51.40% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against ELECTRONIC GAMING & MULTIMEDIA industry averages for proper context.

Dividend Information

Dividend Per Share

$0.76

Dividend Yield

0.37%

Ex-Dividend Date

Dec 3, 2025

Dividend Date

Dec 23, 2025

What dividend income can investors expect from EA?
Electronic Arts Inc offers a dividend yield of 0.37%, paying $0.76 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 3, 2025.
How reliable is EA's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Electronic Arts Inc pays $0.76 per share in dividends against earnings of $3.44 per share, resulting in a payout ratio of 22.09%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Dec 23, 2025.

Company Size & Market

Market Cap

$50.9B

Revenue (TTM)

$7.29B

Revenue/Share (TTM)

$28.58

Shares Outstanding

250.11M

Book Value/Share

$24.06

Asset Type

Common Stock

What is EA's market capitalization and position?
Electronic Arts Inc has a market capitalization of $50.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 250.11M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ELECTRONIC GAMING & MULTIMEDIA industry, it competes with other firms in this sector.
How does EA's price compare to its book value?
Electronic Arts Inc's book value per share is $24.06, while the current stock price is $204.20, resulting in a price-to-book (P/B) ratio of 8.49. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$202.36

0.90% downside potential

Analyst Recommendations

Strong Buy

0

Buy

4

Hold

18

Sell

1

Strong Sell

0

How reliable are analyst predictions for EA?
23 analysts cover EA with 17% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $202.36 implies -0.9% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EA?
Current analyst recommendations:04 Buy, 18 Hold, 1 Sell, 0The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:24 AM

Technical Indicators

RSI (14-day)

75.76

Overbought

50-Day Moving Average

$173.90

17.42% above MA-50

200-Day Moving Average

$150.72

35.48% above MA-200

MACD Line

8.75

MACD Signal

6.68

MACD Histogram

2.07

Bullish

What does EA's RSI value tell investors?
The RSI (Relative Strength Index) for EA is currently 75.76, indicating the stock is in overbought territory (above 70). This suggests strong recent buying pressure that may be unsustainable. While overbought conditions can persist in strong trends, traders often watch for RSI divergences or a drop below 70 as potential sell signals. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret EA's MACD and moving average crossovers?
MACD analysis shows the MACD line at 8.75 above the signal line at 6.68, with histogram at 2.07. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($173.90) is above the 200-day MA ($150.72), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 8, 2025, 01:06 AM

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Electronic Arts Inc (EA) Stock Analysis 2025: Complete Investment Guide

The Post-FIFA Era Begins

In 2023, Electronic Arts did something unthinkable: it walked away from FIFA, the most lucrative licensing deal in gaming history. For 30 years, EA paid FIFA hundreds of millions annually for the right to use soccer's governing body brand. But Andrew Wilson, EA's CEO since 2013, made a bold calculation—the value resided in EA's gameplay engine, Ultimate Team mode, and player database, not the FIFA logo. EA Sports FC 24 proved him right: 100 million players in year one, matching FIFA 23's performance without paying FIFA licensing fees.

This strategic inflection point defines EA's 2025 investment thesis. Wilson's team is executing a three-part playbook: maximize live-service revenue from existing franchises (Apex Legends, The Sims, sports games), expand owned IP to eliminate licensing costs (EA Sports FC, College Football 25), and scale mobile gaming globally. The result? Accelerating bookings growth, expanding margins, and a forward P/E of just 24.3x—a 58% discount to the trailing multiple that fails to reflect the improving business fundamentals.

Business Model & Competitive Moat

EA operates a hybrid model: full-price game releases ($60-70) combined with ongoing live-service monetization (Ultimate Team packs, Battle Passes, Sims expansions). Over 70% of revenue now comes from recurring live services rather than initial game sales. Sports franchises (EA Sports FC, Madden NFL, NHL, College Football) generate $4+ billion annually, while Apex Legends contributes $1+ billion and The Sims franchise adds $500+ million.

The competitive moat centers on exclusive licensing and network effects. EA holds exclusive rights to NFL (Madden), NCAA football (College Football), and now owns the EA Sports FC brand outright. These franchises create annual upgrade cycles—players buy the new version to access updated rosters and compete online. Ultimate Team's network effects are powerful: players invest hundreds of dollars building virtual teams, then return annually to rebuild in the new game. The gameplay engine—Frostbite and Ignite—represents decades of development, creating switching costs competitors cannot easily replicate.

Financial Performance

EA's financial transformation under Andrew Wilson reflects the shift from product sales to live services:

  • •Valuation: Forward P/E of 24.3x versus 58.1x trailing indicates Wall Street pricing in 139% earnings growth
  • •Live Service Revenue: 70%+ of total revenue, up from 40% in 2015, providing predictable cash flow
  • •Margin Expansion: Operating margins improving as high-margin Ultimate Team sales replace lower-margin disc sales
  • •FIFA Savings: Eliminating $300M+ annual FIFA licensing fees drops straight to bottom line
  • •Cash Generation: Strong free cash flow supports $0.20 annual dividend and share buybacks
  • •Mobile Growth: FC Mobile and sports mobile titles growing 20%+ annually, targeting $1B revenue

Growth Catalysts

  • •College Football 25 Success: First NCAA football game in decade sold 5M+ copies in weeks, creating new annual franchise
  • •FC Mobile Expansion: Asia-Pacific soccer gaming market largely untapped, FC Mobile targeting 200M+ users
  • •Apex Legends Growth: Mobile launch and new seasons driving user acquisition, targeting $1.5B annual revenue
  • •The Sims 5 Development: Next-generation Sims game in development, potentially launching 2025-2026
  • •Margin Leverage: Each incremental live-service dollar carries 80%+ margins, driving profit expansion
  • •Licensing Expansion: New EA Sports FC partnerships (leagues, clubs) replacing FIFA at lower cost

Risks & Challenges

  • •Live Service Execution: Apex Legends faces intense competition from Fortnite, Warzone, and new battle royales
  • •Consumer Backlash: Aggressive Ultimate Team monetization creates regulatory scrutiny (loot box legislation)
  • •Development Delays: Battlefield franchise struggles with quality issues, tarnishing EA brand
  • •Console Cycle Risk: Game sales typically decline in final years of console generation
  • •Economic Sensitivity: Discretionary spending on microtransactions vulnerable during recessions
  • •Talent Retention: Top game developers frequently leave for independent studios

Competitive Landscape

EA competes in a fragmented gaming market against Activision Blizzard (now Microsoft), Take-Two Interactive, and Epic Games. In sports gaming, EA's exclusive NFL and college football licenses create a near-monopoly in American football titles. However, 2K Sports' NBA franchise dominates basketball, while Sony's MLB The Show leads baseball. In battle royale, Apex Legends battles Fortnite's massive user base and Call of Duty: Warzone's Activision marketing machine.

Andrew Wilson's strategy deliberately avoids head-to-head RPG or open-world competition with heavyweights like Rockstar (GTA) or CD Projekt Red. Instead, EA focuses on live-service franchises where annual release cycles and ongoing content updates create predictable revenue. The EA Sports FC transition demonstrates this strategic clarity—rather than overpay FIFA indefinitely, Wilson invested in owned IP that EA controls entirely. This discipline separates EA from competitors who chase hit-driven, one-time game sales.

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors seeking gaming exposure with live-service revenue visibility
  • ✓Investors betting on esports and digital entertainment secular trends
  • ✓Value investors comfortable with forward earnings multiples (24x forward P/E)
  • ✓Long-term holders (3-5 years) willing to ride franchise cycles

Less Suitable For

  • ✗Income investors (0.38% yield too low for dividend focus)
  • ✗ESG investors concerned about microtransaction/loot box practices
  • ✗Risk-averse investors uncomfortable with hit-driven industry dynamics
  • ✗Short-term traders (gaming stocks exhibit high volatility)

Investment Thesis

Electronic Arts stands at an inflection point. The FIFA divorce initially appeared risky—would players abandon EA without the FIFA brand? EA Sports FC's 100 million user success definitively answered: no. Wilson's team has proven the value resides in EA's gameplay, online infrastructure, and Ultimate Team ecosystem. Eliminating $300+ million in annual FIFA licensing fees flows directly to margins, while owned IP (EA Sports FC, College Football) creates perpetual franchises EA controls entirely.

The valuation dislocation is remarkable. At 24.3x forward earnings, EA trades at a significant discount to its 30-40x historical range despite improving fundamentals. Live-service revenue approaching 75% of total sales provides unprecedented visibility and margin expansion. College Football 25's blockbuster launch creates a new billion-dollar franchise. Mobile gaming momentum in Asia offers international growth vectors. For investors willing to look past near-term console cycle concerns, EA offers compelling risk-reward at current levels.

Conclusion

EA is a BUY for growth investors seeking gaming exposure with improving fundamentals. The combination of live-service revenue visibility, margin expansion from FIFA elimination, and franchise strength (College Football, EA Sports FC, Apex Legends) creates compelling risk-reward. While live-service execution risks exist, Andrew Wilson's track record and EA's exclusive licensing moat provide confidence. For investors comfortable with gaming sector volatility, EA represents one of the best risk-adjusted opportunities in interactive entertainment, trading at a discount to intrinsic value as the market underappreciates the strategic benefits of the FIFA transition and owned IP expansion.
Bull Case
$200 (40% upside) - Mobile acceleration, Sims 5 blockbuster, margins expand to 35%+
Base Case
$170 (19% upside) - Steady franchise execution, live service growth continues
Bear Case
$130 (9% downside) - Apex Legends decline, consumer spending weakness hits microtransactions

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