Electronic Arts Inc. (EA), headquartered in Redwood City, California, develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, mobile phones, and tablets. Valued at $42.6 billion by market cap, the company also provides advertising services and licenses its games to third parties to distribute and host games.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EA perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the electronic gaming & multimedia industry. EA's strengths lie in its scale, established franchises like FIFA and Madden NFL, and strong brand equity, particularly with EA Sports. Its size allows for cost efficiencies and a diversified portfolio, buffering against industry cycles. The successful shift to digital distribution has also boosted revenue and margins, positioning EA at the forefront of the industry's digital trend.
Despite its notable strength, EA slipped 6.1% from its 52-week high of $180.90, achieved on Aug. 14. Over the past three months, EA stock has gained 15%, outperforming the VanEck Video Gaming and eSports ETF’s (ESPO) 14.8% surge during the same time frame.
In the longer term, shares of EA rose 16.1% on a YTD basis and climbed 18.2% over the past 52 weeks, underperforming ESPO’s YTD gains of 43.6% and solid 71.3% returns over the last year.
To confirm the bullish trend, EA has been trading above its 50-day moving average since early March, with some fluctuations. The stock is trading above its 200-day moving average since late April, with slight fluctuations.
On Jul. 29, EA shares closed down by 2.8% after reporting its Q1 results. Its EPS of $0.79 declined 24% from the year-ago quarter. The company’s revenue stood at $1.7 billion, up marginally year-over-year. EA expects full-year adjusted EPS to be $3.09 to $3.79.
EA’s rival, PLAYSTUDIOS, Inc. (MYPS), has had a rough ride. MYPS' shares plummeted 48.6% in 2025 and 38.7% over the past 52 weeks.
Wall Street analysts are reasonably bullish on EA’s prospects. The stock has a consensus “Moderate Buy” rating from the 28 analysts covering it, and the mean price target of $174.23suggests a potential upside of 2.6% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
