Electronic Arts Inc tumbled 17% in pre-market trading after slashing guidance on a slowdown in its EA Sports FC franchise over the third quarter. Having guided for mid-single-digit growth in live services net bookings over the year, EA on Wednesday said a mid-single-digit decline was now expected.
Electronic Arts cut its outlook on Wednesday, and Wall Street isn't impressed.
Electronic Arts (EA) shares are tumbling in premarket trading Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.
As previously reported, BofA downgraded Electronic Arts to Neutral from Buy with a price target of $130, down from $170. The firm is no longer confident that EA can gain enough share of player engagement and spending to drive "meaningful growth in a struggling PC/Console game industry" without football as a main growth engine, the analyst tells investors. Despite the fiscal Q3 weakness, "big" FY25 guide-down and lower FY26 growth assumptions, the firm is awaiting evidence of whether FC is in "structural decline," the analyst added. 04 Feb 06 Feb
BofA downgraded Electronic Arts to Neutral from Buy with a $130 price target. 04 Feb 06 Feb
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
Shares of Electronic Arts Inc. fell after hours on Wednesday after the videogame developer cut its outlook for the months ahead, following stumbles in its big soccer gaming franchise as well as in some of its role-playing games during a quarter typically lifted by holiday demand.
Video gaming company Electronic Arts cut its forecast for fiscal year 2025 bookings on Wednesday, citing weakness across some sports titles.
Electronic Arts slashed its full-year guidance for bookings on Wednesday, blaming the shortfall on underperforming games, in particular its soccer franchise. Global Football, as EA calls it, started to see a slowdown during the December quarter after two years of double-digit growth in net bookings.
Goldman Sachs expects a 25% increase in mergers and acquisitions in the United States this year. The investment firm expects the incoming government of Donald Trump to be significantly more business-friendly.
EA is benefiting from an expanding gaming portfolio amid intense market competition, challenges in player engagement and weak monetization.
EA Sports College Football 25 posts banner sales, according to industry-tracking firm Circana, in an otherwise fairly mundane month.