
Electronic Arts (EA) Stock Forecast & Price Target
Electronic Arts (EA) Analyst Ratings
Bulls say
Electronic Arts is poised for significant growth potential, particularly in the mobile gaming sector, where improvements could be realized through strategic partnerships, such as those with the Public Investment Fund. The company benefits from a robust portfolio of popular franchises, including annual releases of Madden NFL and FC soccer games, which contribute to strong in-game spending, underscoring a consistent revenue model. Additionally, the relaunch of its American college football game in 2024 is expected to further enhance its market position and revenue streams.
Bears say
Electronic Arts faces significant risks that could negatively impact its financial outlook, including altered game release schedules, potential declines in the average selling price (ASP) of its software, and intensified competition within the gaming industry. Additionally, macroeconomic factors and lower consumer demand for video game hardware may further threaten revenue streams, particularly since approximately 75% of the company's sales derive from in-game spending. The financial performance of Electronic Arts is currently presented at a slight discount compared to the normalized EBITDA valuation achieved by Activision during its acquisition, indicating potential valuation concerns.
This aggregate rating is based on analysts' research of Electronic Arts and is not a guaranteed prediction by Public.com or investment advice.
Electronic Arts (EA) Analyst Forecast & Price Prediction
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