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This Week’s Stock Picks & BNN Top Picks Summary: ASC-N, BBAI-N and 23 Stock and 1 ETF Top Picks (Jan 31-Feb 06)TSX and Wall Street extend recoveryS&P hits new high
Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Electronic Arts Inc., known for its interactive entertainment software, has encountered a tumultuous turn of events in the past month. Despite a strong long-term growth forecast of 5-6% and substantial free cash flow margins allowing for consistent share buybacks, the company recently faced a significant 16% drop following a pre-announcement of disappointing revenue figures, especially in its major sports titles. The rise in social media attention, which surged by 450%, signals potential positive momentum, although concerns regarding mobile game performance linger. Additionally, the integration of AI tools discussed during the recent investor day could indicate future growth opportunities in various fields, including healthcare and sports entertainment. Moreover, the price targets provided by analysts suggest varying confidence levels, ranging from $146.38 to $167.50.

Consensus
Mixed
Valuation
Fair Value
Similar
ATVI,ATVI
TOP PICK

Likes the portfolio, though a bit weak in mobile. Discretionary spend on some titles has been a bit lower. Over the long term, can grow 5-6%. 30% free cashflow margins, enough to buy back 5-6% of shares every year. In-game transactions are 99% gross margins. Yield is 0.6%.

(Analysts’ price target is $146.38)
computer software / processing
DON'T BUY
The 5th-biggest loser on the S&P in January

Was down 16% last month when they pre-announced shockingly light numbers, given weakness in their biggest titles (i.e. soccer game).

computer software / processing
TOP PICK

This pick results from his looking at the application layer 12 months down the road. Model training algorithms are already being monetized in healthcare, education, and now sports/entertainment. Investor day last week saw a lot of AI tools. Yield is 0.5%.

12-month price target of $167.50. Buy 1/3 here around $141, $134, and $125.

(Analysts’ price target is $160.04)
computer software / processing
PAST TOP PICK
(A Top Pick Aug 05/22, Up 5%)

Video game demand down post Covid.
Has since sold shares.
Unsure on future of video game demand.
Waiting to see prospects for business.

computer software / processing
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 08/22, Down 9.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with EA has triggered its stop at $114.  To remain disciplined we recommend covering the position at this time.

computer software / processing
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate this top video game developer as a TOP PICK. With the 2022 World Cup starting, the release of FIFA 23 has been the largest launch in EA FIFA franchise history. The company is shifting more to a subscription revenue style that will add longevity. It has prudently been using some cash reserves to buy back shares. We recommend trailing up the stop-loss (from $100) to $114, looking to achieve $149 -- upside over 15%. Yield 0.5% (Analysts’ price target is $148.76)
computer software / processing
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly This top video game developer has seen recent quarter sales be up 22% with recent releases of key game updates like FIFA 23 (the largest launch in EA FIFA franchise history). The company is shifting more to a subscription revenue style that will add longevity. It has been using some cash reserves to buy back shares. We recommend placing a stop-loss at $100, looking to achieve $151 -- upside over 26%. Yield 0.6% (Analysts’ price target is $150.64)
computer software / processing
TOP PICK
Growth in video games growing as more people use tools to communicate and socialize. Added revenue streams with in-game purchases and upgrades to tools/guns etc. Transition into metaverse with users playing video games. Does not believe company is a legacy player within sector.
computer software / processing
PAST TOP PICK
(A Top Pick Jan 22/21, Down 12.6%) Revenues are still growing at a healthy pace. Good franchises. A major player. A core holding for him. More of a mature gaming company than a high growth stock. Good, solid, secular grower.
computer software / processing
PAST TOP PICK
(A Top Pick Jan 22/21, Down 9%) Hit by tech selloff and the reopening. Revenues still growing at 10% per year. Compelling purchase here. In growth mode. Improving online margins.
computer software / processing
BUY
Allan Tong’s Discover Picks With Activision Blizzard reeling from a recent sexual harassment lawsuit based on several claims and a report slamming it for incompetence in designing a key video game last year, shareholders of video game stocks are looking kindly upon names like Electronic Arts. Two weeks ago, EA reported and beat its guidance in Q1 revenues, bookings and EPS. On top of that, management raised its full-year outlook. EA bought back $325 million of shares in that quarter, bringing the 12-month total to $976 million (all figures in USD). The company continues to swim in cash at $1.413 billion for the trailing 12 months. Read 3 Growing Tech Stocks for our full analysis.
computer software / processing
WEAK BUY

The videogame space is exciting and it's changing rapidly. ATVI and Take Two are also good. These names can be lumpy because of release dates, but he prefers ATVI because of their titles like Call of Duty and for their eco-system. The next generation won't slow down on videogames (he has a 9-year-old who's good at games).

computer software / processing
TOP PICK
A secular growth story. One of the best in the space with amazing franchises. They have Madden, Fifa, Star Wars among others. They use their massive cashflow to buy back shares and increase their offering. They initiated a dividend during covid, which is compelling. The dividend should grow at a high rate for a long time. (Analysts’ price target is $149.08)
computer software / processing
Showing 1 to 15 of 58 entries

Electronic Arts Inc(EA-Q) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 1

Stockchase rating for Electronic Arts Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Electronic Arts Inc(EA-Q) Frequently Asked Questions

What is Electronic Arts Inc stock symbol?

Electronic Arts Inc is a American stock, trading under the symbol EA-Q on the NASDAQ (EA). It is usually referred to as NASDAQ:EA or EA-Q

Is Electronic Arts Inc a buy or a sell?

In the last year, 1 stock analyst published opinions about EA-Q. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Electronic Arts Inc.

Is Electronic Arts Inc a good investment or a top pick?

Electronic Arts Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Electronic Arts Inc.

Why is Electronic Arts Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Electronic Arts Inc worth watching?

1 stock analyst on Stockchase covered Electronic Arts Inc In the last year. It is a trending stock that is worth watching.

What is Electronic Arts Inc stock price?

On 2025-02-11, Electronic Arts Inc (EA-Q) stock closed at a price of $133.35.