Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation through owned and licensed brands, such as EA SPORTS FC, Battlefield, Apex Legends, The Sims, Madden NFL, Need for Speed, Titanfall, and F1 brands. The company licenses its games to third parties to distribute and host its games and content. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.

Electronic Arts Inc.

Roblox Corporation RBLX has seen a sharp 38% decline over the past three months compared with the industry’s fall of 11.1%. However, in the same time frame, the S&P 500 has gained 3.3%.
RBLX stock has fallen largely due to concerns around slowing growth visibility into 2026, margin compression from heavier investments and fears that exceptional recent growth will be hard to sustain against tough comparisons. Management signaled that while platform momentum remains strong, increased spending on creator payouts, infrastructure and safety initiatives could weigh on profitability in the near term. Combined with uncertainty around monetization efficiency and regional mix shifts, investors recalibrated expectations, triggering a sharp pullback even as user engagement and bookings continued to surge.
In the past three months, other industry players like Electronic Arts Inc. EA, Monarch Casino & Resort, Inc. MCRI and Accel Entertainment, Inc. ACEL have outperformed RBLX.
Price Performance
Image Source: Zacks Investment Research
Why RBLX Stock Declines So Sharply
One of the biggest triggers for the selloff was management’s cautious tone on forward visibility. While Roblox reaffirmed its long-term objectives, executives stopped short of providing specific 2026 growth targets. Investors interpreted this as a signal that bookings growth could moderate next year, especially following an exceptionally strong 2025. With expectations running high, even a hint of deceleration was enough to pressure the stock.
Roblox is intentionally increasing spending across several fronts. The company raised its developer exchange rate by 8.5%, pushing more economics to creators. At the same time, it is investing heavily in infrastructure, AI capabilities, safety systems and personnel. Management explicitly noted that margins could decline slightly in 2026 as these costs ramp faster than near-term revenue leverage, which weighed on investor sentiment.
While user growth is accelerating globally, much of that growth is coming from emerging markets, particularly in APAC. These regions monetize at lower rates compared to North America and Europe. As a result, blended metrics like bookings per payer and bookings per DAU have come under pressure, even though engagement is booming. This divergence between usage growth and monetization raised concerns about near-term revenue quality.
Roblox is rolling out stricter safety measures, including AI-based age estimation and higher age thresholds for certain content. While management believes these initiatives will enhance long-term trust and platform durability, it acknowledges they could create short-term friction in engagement and bookings. Markets often discount near-term disruption more heavily than long-term benefits, contributing to the stock’s decline.
Factors Aiding Roblox Stock
Despite the stock pullback, Roblox’s operating performance remains exceptional. In third-quarter 2025, daily active users surged to 151.5 million, up 70% year over year, while total engagement hours jumped 91%. Importantly, the 13-and-over demographic is growing even faster, signaling progress toward an older, potentially higher-value user base. This expanding and maturing audience strengthens Roblox’s long-term monetization potential.
In third-quarter 2025, bookings rose 70% year over year to $1.92 billion, far outpacing most gaming peers. Creator earnings continue to scale rapidly, with DevEx payouts hitting record levels and growing 250% over two years. A healthy creator economy is critical to sustaining content innovation, user retention and long-term platform relevance.
Roblox is embedding AI deeply across discovery, safety and content creation. Technologies such as Cube 3D/4D, real-time content generation and advanced recommendation systems are designed to unlock new genres like shooters, sports and RPGs. These initiatives expand the company’s addressable market beyond its traditional core, supporting management’s ambition to capture a much larger share of global gaming over time.
Advertising remains a relatively under-monetized opportunity. While management is cautious in the near term, early tests of rewarded video ads show promise. As engagement deepens and the user base ages, Roblox has multiple levers — ads, commerce, subscriptions and virtual economies — to improve monetization without sacrificing user experience.
RBLX’s Earnings & Sales Estimates
The Zacks Consensus Estimate for 2025 and 2026 sales is pegged at $6.64 billion and $8.1 billion, indicating 51.9% and 22.1% year-over-year growth, respectively.
Meanwhile, other industry players like Electronic Arts' sales in fiscal 2026 are likely to gain 9.5%, whereas Monarch Casino & Resort and Accel Entertainment's sales in 2025 are likely to witness a year-over-year rise of 4.2% and 7.8%, respectively.
The consensus estimate for RBLX’s 2025 loss estimates has narrowed in the past 30 days, as shown in the chart.
Image Source: Zacks Investment Research
RBLX Trades at a Premium
Roblox is currently valued at a premium compared with the industry on a forward 12-month P/S basis. RBLX’s forward 12-month price-to-sales ratio is 6.66, significantly higher than that of the industry. The company is trading at a premium compared with other industry players like Electronic Arts, Monarch Casino & Resort and Accel Entertainment.
P/S (F12M)
Image Source: Zacks Investment Research
Wrapping Up
RBLX’s selloff reflects a reset in expectations rather than a deterioration in its core business, supporting a Zacks Rank #3 (Hold) position for existing investors. User engagement, creator activity and long-term platform potential remain strong, but near-term uncertainty has risen as the company steps up spending on creators, safety and infrastructure, pressuring margins and clouding growth visibility.
With monetization still evolving and the stock trading at a premium despite these headwinds, upside appears limited in the short run. Long-term investors can stay invested in the platform’s growth story, but new buyers are better off waiting for clearer earnings leverage or a more attractive entry point.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Roblox Stock Down 38% in 3 Months: Buy the Dip or Sell More?

Below is Validea's guru fundamental report for ELECTRONIC ARTS INC (EA). Of the 22 guru strategies we follow, EA rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
ELECTRONIC ARTS INC (EA) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
TWELVE MINUS ONE MOMENTUM:
NEUTRAL
Detailed Analysis of ELECTRONIC ARTS INC
More Information on Pim van Vliet
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

EA Factor-Based Stock Analysis

Below is Validea's guru fundamental report for ELECTRONIC ARTS INC (EA). Of the 22 guru strategies we follow, EA rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
ELECTRONIC ARTS INC (EA) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 68% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
TWELVE MINUS ONE MOMENTUM:
NEUTRAL
Detailed Analysis of ELECTRONIC ARTS INC
More Information on Pim van Vliet
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Detailed Fundamental Analysis - EA

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Communication Services Select Sector SPDR Fund (Symbol: XLC) where we have detected an approximate $83.9 million dollar outflow -- that's a 0.3% decrease week over week (from 227,600,000 to 226,850,000). Among the largest underlying components of XLC, in trading today Warner Bros Discovery Inc (Symbol: WBD) is up about 0.7%, Electronic Arts, Inc. (Symbol: EA) is up about 0.1%, and Take-Two Interactive Software, Inc. (Symbol: TTWO) is up by about 0.4%. For a complete list of holdings, visit the XLC Holdings page » The chart below shows the one year price performance of XLC, versus its 200 day moving average:
Looking at the chart above, XLC's low point in its 52 week range is $84.02 per share, with $119.55 as the 52 week high point — that compares with a last trade of $112.73. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
TGE YTD Return
Top Ten Hedge Funds Holding ATCH
BWAC YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLC, WBD, EA, TTWO: ETF Outflow Alert

Below is Validea's guru fundamental report for ELECTRONIC ARTS INC (EA). Of the 22 guru strategies we follow, EA rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ELECTRONIC ARTS INC (EA) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ELECTRONIC ARTS INC
More Information on Partha Mohanram
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	42.01 16.80
Price/Sales	5.90 1.00
P/B	6.93 1.56
P/FCF	25.37 11.76

Indicator	TTM Median
ROE	15.27 12.75
ROA	8.23 5.10
ROI	12.25 7.52
Net Worth	42.68 0.85
Quick Ratio	0.00 0.93
Current Ratio	0.84 1.21

Indicator	TTM Median
Net Profit Margin	13.94 10.21
Operating Margin	19.09 14.29
Gross Margin	79.14 55.77
Return on tangible equity	91.89 27.87

Indicator	TTM Median
EPS	0.23 0.25
EPS Forecast	0.38 0.21
Revenue	1.67B 89.00M
Gross Profit	1.39B —
EBITDA	350.00M —

Electronic Arts Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue