
Electronic Arts (EA) Stock Forecast & Price Target
Electronic Arts (EA) Analyst Ratings
Bulls say
Electronic Arts is positioned for significant growth, particularly in mobile revenue, as a new private takeover could leverage the expertise of its investors to enhance value in this area. The firm's business model relies heavily on in-game spending, which constitutes about three-quarters of its revenues, indicative of a strong engagement strategy that could be further optimized. Additionally, the resurgence of popular franchises, including the relaunch of American college football, combined with robust existing games like Madden NFL and FC soccer, supports a positive outlook for sustained revenue generation.
Bears say
Electronic Arts faces significant risks that contribute to a negative outlook on its stock, including potential delays in game release timing and a deterioration in the average selling price (ASP) for its software. Additionally, the company's revenue model, which relies heavily on in-game spending for three quarters of sales, may be adversely impacted by increased competition and changing consumer demand amid fluctuating macroeconomic conditions. Compared to Activision's acquisition metrics, Electronic Arts appears to be trading at a discount, highlighting concerns regarding its market position and revenue stability in the face of these challenges.
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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