EA Price & AI Analysis — Electronic Arts Inc | HeyTheo
Market Cap
50.5816B
Large Cap
P/E Ratio
57.47
Fwd: 23.15
EPS (TTM)
$3.51
Div. Yield
0.38%
Theo Outlook
Electronic Arts (EA) presents a compelling bullish case with a $50.81 billion market capitalization, trailing P/E of 57.73, forward P/E of 23.2, and EPS of $3.51. Revenue reached $7.531 billion TTM with 11.9% quarterly YoY growth and an 11.8% profit margin, positioning the company for continued expansion in the digital gaming sector despite elevated valuation multiples.
Key catalysts include strong earnings momentum, new game releases in established franchises, and expansion into live services and mobile gaming. Analyst consensus targets $202.80 per share with 18 buy/hold ratings and zero sells, supported by recurring revenue from EA Sports titles and digital marketplaces that drive higher margins.
Risks encompass regulatory scrutiny on loot boxes and data privacy, intense competition from Activision Blizzard and Take-Two, plus macroeconomic pressures on consumer spending. These are mitigated by EA's diversified portfolio, 0.656 beta indicating lower volatility, and proven ability to deliver 11.9% revenue growth amid industry headwinds.
Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
EA
EANASDAQ— Electronic Arts Inc Price & Analysis
Electronic Arts Inc
COMMUNICATION SERVICES — ELECTRONIC GAMING & MULTIMEDIA
$202.48
-$0.72-0.35%
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Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. It is the second-largest gaming company in the Americas and Europe by revenue and market capitalization after Activision Blizzard and ahead of Take-Two Interactive, and Ubisoft as of May 2020.
Fundamental Snapshot
Revenue
7.531B
EBITDA
1.485B
Gross Profit
5.947B
Operating Margin
24.0%
Profit Margin
11.8%
ROE
13.5%
Book Value
$26.98
Beta
0.656
52-Wk High
$204.5
52-Wk Low
$144.1
Avg Volume
1.4166M
PEG Ratio
1.252
Trading Data
Open
$203.2
Previous Close
$203.2
Day Range
$202.27 – $203.33
Volume
1.336M
Shares Outstanding
250.751M
Analyst Target
$202.8
Frequently Asked Questions
What is Electronic Arts' (EA) core business model?
EA develops and publishes video games across console, PC, and mobile platforms, generating revenue primarily through full-game sales, in-game purchases, and subscriptions. With $7.531B TTM revenue and 11.8% profit margin, the model emphasizes live-service titles like FIFA and Madden that deliver recurring income.
What are EA's main revenue sources?
EA earns the majority of its $7.531B TTM revenue from digital sales and live services (over 70% of total), followed by packaged goods and licensing. Key contributors include EA Sports franchises and mobile games, with 11.9% YoY quarterly revenue growth highlighting the shift to digital.
What competitive advantages does EA hold?
EA benefits from strong brand recognition in sports gaming, a robust pipeline of annual releases, and a 0.656 beta for relative stability. Its $50.81B market cap and forward P/E of 23.2 reflect scale advantages over smaller rivals, plus high institutional ownership at 95.2%.
What are the key risks for EA investors?
Primary risks include regulatory changes on microtransactions, competition from larger peers, and consumer spending sensitivity. EA mitigates these through diversified revenue, a low 0.656 beta, and consistent 11.9% revenue growth, with the stock trading between $144.97 and $204.50 over 52 weeks.
What is EA's growth outlook?
Analysts project solid growth with a $202.80 target price and forward P/E compression to 23.2 from 57.73 trailing. Drivers include new game launches and digital expansion, supported by $3.51 EPS and 0.38% dividend yield, positioning EA for continued double-digit revenue gains.
