Electronic Arts (EA)
Market Price (11/15/2025): $201.29 | Market Cap: $50.3 BilSector: Communication Services | Industry: Interactive Home Entertainment
Electronic Arts (EA)
Market Price (11/15/2025): $201.29Market Cap: $50.3 BilSector: Communication ServicesIndustry: Interactive Home Entertainment
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 23% | Trading close to highsDist 52W High is -0.5%, Dist 3Y High is -0.5% | Expensive valuation multiplesP/EPrice/Earnings or Price/(Net Income) is 57x |
| Low stock price volatilityVol 12M is 33% | Weak multi-year price returns3Y Excs Rtn is -18% | Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.6%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.1%, Rev Chg QQuarterly Revenue Change % is -9.2% |
| Megatrend and thematic driversMegatrends include Digital Content & Streaming, E-commerce & Digital Retail, Experience Economy & Premiumization, and Social Media & Creator Economy. Show more. | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 23% |
| Low stock price volatilityVol 12M is 33% |
| Megatrend and thematic driversMegatrends include Digital Content & Streaming, E-commerce & Digital Retail, Experience Economy & Premiumization, and Social Media & Creator Economy. Show more. |
| Trading close to highsDist 52W High is -0.5%, Dist 3Y High is -0.5% |
| Weak multi-year price returns3Y Excs Rtn is -18% |
| Expensive valuation multiplesP/EPrice/Earnings or Price/(Net Income) is 57x |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.6%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.1%, Rev Chg QQuarterly Revenue Change % is -9.2% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% |
Market Valuation & Key Metrics
EA Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
The stock of Electronic Arts (EA) experienced a significant upward movement of 32% between July 31, 2025, and November 15, 2025, primarily driven by a landmark acquisition announcement and strong underlying business performance.
1. The announcement of a $55 billion leveraged buyout. On September 29, 2025, Electronic Arts announced it had agreed to be acquired and taken private by a consortium for approximately $55 billion, with shares valued at $210 each. This major news served as the most significant catalyst, driving the stock price considerably higher towards the acquisition valuation.
2. Strong Q1 FY26 financial results. For the first fiscal quarter of 2026, which ended on June 30, 2025, Electronic Arts reported strong profits and higher-than-expected net revenue of $1.671 billion and net income of $201 million. These positive financial results, likely reported in late July or early August 2025, demonstrated the company's robust performance and contributed to investor confidence before the acquisition news.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| EA Return | 34% | -8% | -7% | 13% | 7% | 38% | 92% |
| Peers Return | 22% | 8% | -24% | 23% | 2% | -15% | 7% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 109% |
Monthly Win Rates [3] | |||||||
| EA Win Rate | 58% | 58% | 42% | 75% | 67% | 60% | |
| Peers Win Rate | 28% | 31% | 13% | 38% | 30% | 34% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| EA Max Drawdown | -19% | -16% | -15% | -10% | -8% | -20% | |
| Peers Max Drawdown | -6% | -7% | -28% | -4% | -8% | -32% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: MSFT, TTWO, PLTK, CTW, DKI. See EA Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 11/14/2025 (YTD)
How Low Can It Go
| Event | EA | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -26.7% | -25.4% |
| % Gain to Breakeven | 36.4% | 34.1% |
| Time to Breakeven | 508 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -23.4% | -33.9% |
| % Gain to Breakeven | 30.5% | 51.3% |
| Time to Breakeven | 26 days | 148 days |
| 2018 Correction | ||
| % Loss | -49.8% | -19.8% |
| % Gain to Breakeven | 99.3% | 24.7% |
| Time to Breakeven | 771 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -75.8% | -56.8% |
| % Gain to Breakeven | 313.2% | 131.3% |
| Time to Breakeven | 2286 days | 1480 days |
Compare to MSFT, TTWO, PLTK, CTW, DKI
In The Past
Electronic Arts's stock fell -26.7% during the 2022 Inflation Shock from a high on 2/2/2021. A -26.7% loss requires a 36.4% gain to breakeven.
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Latest Trefis Analyses
Trade Ideas
Select past ideas related to EA. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10032025 | TTD | Trade Desk | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | -16.8% | -16.8% | -16.8% |
| 10032025 | CABO | Cable One | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -39.5% | -39.5% | -39.5% |
| 09122025 | DV | DoubleVerify | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -19.6% | -19.6% | -27.9% |
| 07312025 | CMCSA | Comcast | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -14.9% | -14.9% | -17.9% |
| 05312025 | PINS | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -14.0% | -14.0% | -17.2% | |
| 12312022 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 6.5% | 12.7% | -10.5% |
| 06302022 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.7% | 7.3% | -9.8% |
| 12312021 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -6.7% | -6.8% | -15.3% |
| 05312019 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 8.5% | 32.0% | -6.6% |
| 11302018 | EA | Electronic Arts | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 10.7% | 20.1% | -11.1% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10032025 | TTD | Trade Desk | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | -16.8% | -16.8% | -16.8% |
| 10032025 | CABO | Cable One | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -39.5% | -39.5% | -39.5% |
| 09122025 | DV | DoubleVerify | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -19.6% | -19.6% | -27.9% |
| 07312025 | CMCSA | Comcast | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -14.9% | -14.9% | -17.9% |
| 05312025 | PINS | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -14.0% | -14.0% | -17.2% | |
| 12312022 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 6.5% | 12.7% | -10.5% |
| 06302022 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.7% | 7.3% | -9.8% |
| 12312021 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -6.7% | -6.8% | -15.3% |
| 05312019 | EA | Electronic Arts | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 8.5% | 32.0% | -6.6% |
| 11302018 | EA | Electronic Arts | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 10.7% | 20.1% | -11.1% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Electronic Arts
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 102.56 |
| Mkt Cap | 46.8 |
| Rev LTM | 6,754 |
| Op Inc LTM | 806 |
| FCF LTM | 1,000 |
| FCF 3Y Avg | 1,141 |
| CFO LTM | 1,153 |
| CFO 3Y Avg | 1,291 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 10.7% |
| Rev Chg 3Y Avg | 7.2% |
| Rev Chg Q | 13.5% |
| QoQ Delta Rev Chg LTM | 3.2% |
| Op Mgn LTM | 15.3% |
| Op Mgn 3Y Avg | 18.5% |
| QoQ Delta Op Mgn LTM | -0.3% |
| CFO/Rev LTM | 20.8% |
| CFO/Rev 3Y Avg | 23.5% |
| FCF/Rev LTM | 17.7% |
| FCF/Rev 3Y Avg | 20.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 46.8 |
| P/S | 6.9 |
| P/EBIT | 16.9 |
| P/E | 26.7 |
| P/CFO | 26.3 |
| Total Yield | 2.7% |
| Dividend Yield | 0.4% |
| FCF Yield 3Y Avg | 3.6% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -1.6% |
| 3M Rtn | 5.4% |
| 6M Rtn | 3.7% |
| 12M Rtn | 20.4% |
| 3Y Rtn | 58.8% |
| 1M Excs Rtn | -4.4% |
| 3M Excs Rtn | 0.4% |
| 6M Excs Rtn | -9.4% |
| 12M Excs Rtn | 9.0% |
| 3Y Excs Rtn | -17.8% |
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/28/2025 | -0.0% | 0.2% | |
| 7/29/2025 | 5.7% | 8.9% | 16.9% |
| 5/6/2025 | 0.6% | -3.5% | -4.2% |
| 1/22/2025 | -16.7% | -17.7% | -8.0% |
| 10/29/2024 | 2.4% | 6.8% | 12.1% |
| 7/30/2024 | 1.2% | -2.3% | 0.3% |
| 5/7/2024 | -3.8% | -2.8% | 5.6% |
| 1/30/2024 | 0.0% | -1.7% | 1.5% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 9 | 13 |
| # Negative | 12 | 15 | 11 |
| Median Positive | 2.3% | 5.6% | 4.0% |
| Median Negative | -3.7% | -2.3% | -6.1% |
| Max Positive | 8.0% | 15.1% | 21.9% |
| Max Negative | -16.7% | -17.7% | -12.6% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 10312025 | 10-Q 9/30/2025 |
| 6302025 | 8012025 | 10-Q 6/30/2025 |
| 3312025 | 5132025 | 10-K 3/31/2025 |
| 12312024 | 2052025 | 10-Q 12/31/2024 |
| 9302024 | 11012024 | 10-Q 9/30/2024 |
| 6302024 | 8022024 | 10-Q 6/30/2024 |
| 3312024 | 5222024 | 10-K 3/31/2024 |
| 12312023 | 2062024 | 10-Q 12/31/2023 |
| 9302023 | 11072023 | 10-Q 9/30/2023 |
| 6302023 | 8082023 | 10-Q 6/30/2023 |
| 3312023 | 5242023 | 10-K 3/31/2023 |
| 12312022 | 2072023 | 10-Q 12/31/2022 |
| 9302022 | 11082022 | 10-Q 9/30/2022 |
| 6302022 | 8092022 | 10-Q 6/30/2022 |
| 3312022 | 5252022 | 10-K 3/31/2022 |
| 12312021 | 2082022 | 10-Q 12/31/2021 |
Insider Activity
Expand for More| Owner | Title | Filing Date | Action | Price | Shares | TransactedValue | Value ofHeld Shares | Form | |
|---|---|---|---|---|---|---|---|---|---|
| 0 | Wilson Andrew | Chairman & CEO | 10212025 | Sell | 200.55 | 5,000 | 1,002,752 | 8,501,937 | Form |
| 1 | Singh Vijayanthimala | Chief People Officer | 10162025 | Sell | 200.31 | 1,200 | 240,372 | 6,476,223 | Form |
| 2 | Schatz Jacob J. | EVP, Global Affairs and CLO | 10162025 | Sell | 200.80 | 1,200 | 240,961 | 4,995,929 | Form |
External Quote Links
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| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |