Stock Spotlight: Electronic Arts Inc. (NASDAQ:EA)
This week's Stock Spotlight is NASDAQ-listed Electronic Arts Inc.
About Electronic Arts Inc.
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation through owned and licensed brands, such as EA SPORTS FC, Battlefield, Apex Legends, The Sims, Madden NFL, Need for Speed, Titanfall, and F1 brands. The company licenses its games to third parties to distribute and host its games and content. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.

Source: Yahoo Finance
Key Stats
Key Stats
Source: Yahoo Finance. Data as of 06/01/25.
Price Performance

Growth Potential
- Share price is trading largely in line with our updated valuation.
- Attractive long-term drivers in online gaming and Esports should benefit EA.
- Strong core franchises in Madden NFL, EA SPORTS FC (previously FIFA), The Sims, College Football, Apex Legends and Battlefield.
- New product releases surprise on the upside (e.g. College Football 25).
- Mobile advertising presents significant opportunities (though not without execution risk).
- Solid free cash flow generation and strong balance sheet, the Company has ample room to support capital management initiatives (such as a share buyback).
- Potential M&A (e.g. Microsoft’s purchase of Activision Blizzard).
Key Risks
- New competition and new product release from existing competitors could impact EA’s growth rate.
- Key franchises or new product releases fail to attract gamers or meet investor growth expectations.
- Cloud gaming could be disruptive for incumbents.
- Adverse regulatory changes.
- Concentration of revenue / earnings to a small group of games.
- Disruption to mobile growth (e.g., growth in smart glasses displaces smartphones).
- Loss of content licensing agreements.
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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.





