Risk factor
Negligible price volatility
Profitability factor
Greatly overvalued vs peers
In Guru Portfolios
Manager | Fund | Portfolio Weight (%) | Change |
|---|---|---|---|
| Kenneth Griffin | CITADEL ADVISORS LLC | 0.2% | +0.06% |
| Steven Cohen | Point72 Asset Management, L.P. | 0.0% | -0.01% |
About
Electronic Arts Inc., established in 1982 and based in Redwood City, California, is a global leader in the creation, promotion, publication, and distribution of interactive entertainment. The company delivers a wide array of games, content, and services for various platforms, including gaming consoles, personal computers, smartphones, and tablets across the globe. EA develops and releases titles spanning popular genres such as sports, racing, first-person shooters, action, role-playing, and simulation. Its prominent proprietary franchises include Battlefield, The Sims, Apex Legends, and Need for Speed, alongside celebrated licensed properties like FIFA, Madden NFL, UFC, and Star Wars. Furthermore, Electronic Arts grants licenses for its games to external partners for distribution and hosting. The company reaches its customers through diverse channels, encompassing digital storefronts, traditional retail outlets, direct sales to major retailers and specialty shops, and various distribution agreements.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITDA,
Target Price
The average target price of EA is 204 and suggests 2.9% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decre