Electronic Arts Inc. (EA)

Over the past six months, EA's share price has underperformed the S&P500 Index by -1.58%. As of July 18, 2025, the share price was $150.11, representing an increase of 4.79% since July 22, 2024. The stock reached its all-time high closing price of $167.53 in late November 2024, but experienced turbulence afterward, plummeting 18% to $116 in late January 2025 after a disappointing trading update, but the shares have since staged a recovery. For its full fiscal year 2026, EA expects sales of $7.1 billion to $7.5 billion and anticipates gains in net bookings of $7.6 billion to $8 billion. In May 2025, EA reported strong Q4 FY25 results, with net bookings up 8% and full game net bookings up 48%, leading to a 5% jump in shares in after-hours trading, and declared a quarterly cash dividend of $0.19 per share payable on June 18, 2025.

Demand for Electronic Arts' products and services exhibits seasonality, with the third fiscal quarter typically showing the highest level of net bookings, coinciding with the Christmas holiday season. Historically, EA's stock price tends to drop in the early months of the year, reflecting this seasonality. The company's business model, with a significant and growing portion relying on live services, helps provide a steady revenue stream beyond initial game sales, mitigating some of the seasonal fluctuations from new game releases. EA's sports franchises are consistent revenue drivers, while other games may experience peaks and valleys based on sequel releases.

Electronic Arts Inc. (EA), founded in 1982, is a leading American video game company that develops, markets, publishes, and distributes games, content, and services for various platforms worldwide. EA is known for its diverse portfolio of popular franchises, including EA SPORTS FC, Madden NFL, Apex Legends, Battlefield, The Sims, Need for Speed, F1, Star Wars branded games, Dragon Age, Titanfall, Plants vs. Zombies, UFC, Command & Conquer, and Mass Effect. Beyond full game sales, EA generates significant revenue from live services, including extra content, subscription offerings like EA Play, and in-game purchases, with digital sales representing a substantial portion of its total game sales volume.

Electronic Arts maintains a significant global presence with offices and studios across North America, Europe, and Asia, operating in over 75 countries with multiple distribution channels. Its headquarters is in Redwood City, California, and it has development studios and offices in various locations, including Burnaby, Austin, Orlando, Guildford, Stockholm, Seoul, Melbourne, and San Francisco. EA's global distribution network contributed to $5.6 billion in digital net bookings for fiscal year 2023.

Electronic Arts has faced historical criticism, earning the derogatory nickname "Evil Empire" due to past practices and was named "Worst Company in America" by Consumerist in 2012 and 2013. In 2018, EA was named the 5th most hated company in the United States due to anti-consumer decisions, rushing out games, and the closure of studios. Controversies surrounding loot boxes have also negatively impacted its reputation. Despite these historical issues, EA benefits from strong brand loyalty and network effects due to its decades of brand building with franchises like EA SPORTS FC, Madden NFL, and The Sims.

The ownership structure of Electronic Arts stock is a mix of institutional, retail, and individual investors. Institutional investors hold a significant portion, with approximately 89.8% of the company's stock held by institutions, including Vanguard Group Inc., BlackRock, Inc., and Public Investment Fund. Individual insiders hold a smaller percentage, around 0.206% of shares.