From Nasdaq: 2024-11-18 22:07:55

Electronic Arts (NYSE: EA) has seen a 25% rise in stock value since early 2022, reaching $160. This growth is attributed to a 30% increase in revenue, share buybacks, and a lower P/S ratio. Revenue growth was driven by live services like FIFA and acquisitions, with an operating margin improvement to 20.9%.

However, revenue growth was only 2% in fiscal 2024 due to declining gaming demand. EA reported Q2’25 bookings of $2.1 billion, up 14% y-o-y, driven by sports games and The Sims. They expect net bookings of $7.5-7.8 billion in fiscal 2025. EA stock is up 20% this year, performing slightly below the S&P 500.

Looking ahead, EA stock is forecasted to be fairly priced at $165 per share, based on a 21x forward P/E ratio for 2025. Sports franchises and The Sims are expected to drive sales growth. While the stock appears appropriately priced, investors may want to wait for a dip before investing. EA’s peers are also compared for further insights.



Read more at Nasdaq: Should You Pick Electronic Arts Stock At $165?