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Electronic Arts (EA) Shares Soar 2.41% on MLS, Apple TV Partnership

Mover TrackerMonday, May 5, 2025 7:15 pm ET

3min read

Electronic Arts (EA) shares surged 2.41% today, marking the third consecutive day of gains, with a cumulative increase of 6.65% over the past three days. The stock price reached its highest level since December 2024, with an intraday gain of 2.81%.

Electronic Arts (EA) stock price movements following a new high:
Short-Term Performance
- 1 Week: After reaching a new high, EA's stock price exhibited a tendency to consolidate, with a slight average decline of approximately 1-2%. This consolidation period is typical post-high, reflecting market adjustments as investors digest the new price level.
- 1 Month: The stock often experienced a rebound within the first month following the high, with an average increase of about 5-10%. This rebound is due to renewed investor confidence as the market processes the new high and looks forward to the company's future performance.
Medium-Term Performance
- 3 Months: After three months, EA's stock price had a stronger average increase of 10-15%, often driven by the company's earnings reports, industry trends, and market conditions. This period includes the earnings season, which can significantly impact stock prices, especially if the earnings reports exceed expectations.
Conclusion: EA's stock price tends to consolidate in the immediate aftermath of reaching a new high, but typically rebounds within a month, with more significant gains observed over three months. This performance is influenced by a combination of factors, including market digestion of the new high, earnings reports, and broader industry trends. Investors may find opportunities in the short-term fluctuations, especially if they align with positive earnings announcements or favorable industry developments.

One of the key factors driving EA's recent stock performance is its strategic partnership with Major League Soccer (MLS) and Apple TV. This collaboration aims to stream live MLS matches on the ea Sports FC Mobile platform, which is expected to boost user engagement and expand EA's presence in the sports gaming market. This move is seen as a significant step in enhancing EA's competitive edge and attracting a broader audience.

Another significant event on the horizon is EA's upcoming Q4 2025 earnings report. Analysts are projecting an EPS of $1.08, which would represent a 61.2% year-over-year increase. However, this optimism is tempered by a projected 6.6% decline in revenue to $1.55 billion. EA's history of missing revenue expectations four times in the past two years has contributed to a cautious sentiment among investors, who are closely watching the company's financial performance.

Additionally, EA's stock has benefited from a broader positive trend in the consumer internet sector. Over the past month, EA shares have increased by 12.2%, aligning with the robust performance of peers in the industry. This sector-wide momentum has provided a favorable backdrop for EA's recent gains, as investors continue to show confidence in the company's long-term prospects.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.