Stock Price & Analysis

Based on the recent data and news, EA stock is showing significant weakness after lowering its Q3 revenue guidance, with multiple analyst downgrades suggesting further downside risk. The stock plummeted over 16% on January 24, 2025, marking its worst single-day decline since the dot-com bubble, due to weaker demand for its soccer franchise EA Sports FC and Dragon Age.

The stock is currently deeply oversold with an RSI of 11.53, suggesting potential for a technical bounce, though fundamental challenges remain significant. The stock closed at $116.56 on January 24, 2025, with continued weakness in after-hours trading.

Given the magnitude of the revenue guidance cut (from $2.507B to $1.883B) and multiple analyst downgrades, including Bank of America's downgrade to Hold with a reduced price target of $130, selling EA stock at current levels would be the prudent action until there's clear evidence of stabilization in its core franchises and improved visibility into future growth catalysts.

Based on the provided data and recent market events, here is the price prediction for EA stock in 2025:

EA stock is projected to reach $143 by mid-2025, driven by the recovery from its recent selloff after lowered bookings guidance. The stock's significant drop of over 16% in January 2025 due to weaker demand for its soccer franchise appears to be an overreaction, as operating margins could improve despite declining sales.

The stock should find strong support around $114-121 based on Fibonacci levels, with potential upside to $143-150 range if the company successfully executes its gameplay refresh initiatives and demonstrates improved efficiency in operations.

The views expressed above are based on technical analysis, fundamental factors, and market sentiment. Actual results may vary significantly from these projections.

The S1 support level for EA Stock is $121.1 ,The R1 resistant level for EA Stock is $143.13.

As of the end of day on 2025-01-24, the price of EA Stock was $116.42.

The target price for EA Stock according to analyst rating is 170.25, with the highest price target at 207.00 and the lowest at 150.00. Analysts have a Moderate Buy rating on EA Stock overall.

The market cap of EA is $30.6B.

Based on the provided data and recent market events, EA appears overvalued for several key reasons:

EA's stock has experienced significant downward pressure after lowering its Q3 bookings guidance to $2.22 billion from previous guidance of $2.4-2.55 billion. The company cited weakness in its Global Football Division and disappointing sales of Dragon Age: The Veilguard, which engaged only 1.5 million players - 50% below expectations.

The valuation metrics show concerning signs:

• Forward P/E of 36.82 is significantly higher than historical averages
• EV/EBITDA of 20.11 indicates premium valuation compared to peers
• Price-to-Sales ratio of 5.21 suggests overvaluation relative to industry standards

Multiple analysts have downgraded EA recently:

• BMO Capital downgraded to Market Perform with PT cut from $160 to $145
• Bank of America downgraded to Hold with PT cut from $170 to $130
• Raymond James downgraded to Market Perform from Outperform

The consensus view points to near-term challenges in EA's flagship franchises and reduced visibility into growth prospects. With core franchises underperforming and increased competition expected in 2025, EA's current valuation appears difficult to justify.

The financial metrics also raise concerns:

• Net margin declined from 16.87% to 14.52% quarter-over-quarter
• ROE dropped from 17.2% to 13.96%
• Revenue growth has been inconsistent with Q2 2025 showing signs of pressure

Electronic Arts Inc. is a digital interactive entertainment company. The Company develops, markets, publishes, and delivers games, content and services that can be played by consumers on a range of platforms, which include game consoles, personal computers (PCs), mobile phones and tablets. Its portfolio includes brands that it either wholly owns, such as Apex Legends, Battlefield, and The Sims or licenses from others, such as Madden NFL, Star Wars, and the 300 plus licenses within its global football ecosystem. The Company develops and publishes games and services across diverse genres, such as sports, racing, first-person shooter, action, role-playing and simulation. The Company markets and sells its games and services through retail channels and through digital distribution channels. The Company also offers live services, including content, subscription offerings and sale of its base games and free-to-play games.

Based on the provided data and market analysis, here's a projection for EA's stock price in 2030:

EA's stock price is projected to reach approximately $185-195 by 2030, driven by the company's strong gaming franchise portfolio and digital transformation. The growth trajectory is supported by EA's successful rebranding of its sports franchises and expansion in live services. However, recent challenges in global football and gaming demand slowdown suggest a more moderate growth path.

The company's strategic focus on digital distribution and live services, combined with its solid financial position (debt to equity ratio of 4.5%), positions it for sustainable long-term growth despite current market headwinds. Recent technical indicators and RSI readings of 11.53 suggest the stock is currently oversold, potentially offering a good entry point for long-term investors.

EA has a total of 13400 employees.