EA trimmed its third-quarter and full-year guidance
Electronic Arts Inc. (NASDAQ:EA) stock is near the bottom of the Nasdaq today, last seen down 17.3% to trade at $117.62. The video game company cut its third-quarter and 2025 bookings forecast, citing a slowdown in the popular FIFA franchise. In response, three brokerages issued downgrades, while four more brokerages issued price-target cuts, the worst coming from Stifel to $133 from $159.
There could be more adjustments on the way, considering EA's 12-month consensus price target of $154.01 is a 31.4% premium to its current perch. At last check, the shares on track for their worst single-session decline ever, and are now trading at their lowest level since April 2023. The equity is now below its year-over-year breakeven level.
Options traders are out in droves today, with volume running at 14 times the average intraday amount. The March 110 put is the most popular, followed by the February 100 strike put, with buy-to-open activity detected at both.
In two weeks, after the market closes on Feb. 4, Electronic Arts will step back into the spotlight to report fiscal third-quarter earnings. The stock has a rather muted history of post-earnings moves, adding only 2.4% after Oct. 30 earnings and averaging a post-report move of 3.5% after the last eight reports. For Feb. 5 though, the options market is pricing in a larger-than-usual post-earnings move of 8.9%.