EA shares fell nearly 17% after pre-announcing worse-than-expected Q3 earnings. Wall Street expected $1.15 per share, but results were lower at $1.11. Management aimed to set a target of $1.11 despite revised guidance for mid-single digits decline in live services net bookings, hurt by a slowdown in Global Football and Dragon Age games. Q3 revenue is estimated around $1.88 billion, with earnings at $1.11. Yahoo! Finance predicts a miss on sales estimates but also lower earnings than expected. EA’s stock, trading around $117 per share, has a 30x trailing earnings P/E ratio, suggesting it may still be overvalued given declining sales and expectations.
Source: https://www.fool.com/investing/2025/01/23/why-electronic-arts-stock-just-crashed-17