We recently compiled a list of the 5 Gaming Stocks That Are Solid Bets Despite Tariffs. In this article, we are going to take a look at where Electronics Arts Inc. (NASDAQ:EA) stands against the other gaming stocks.
As Trump made his move regarding tariffs on multiple trade partners, many stocks with international exposure took a dive. Gaming stocks were also negatively impacted. We decided to take a look at some of the gaming stocks that traded down after the tariff announcement but continue to be solid investments.
The reason these stocks are not hugely impacted by tariffs is because of the nature of the business. Games developed by these companies have a huge fan following, which usually isn’t deterred by minor increases in price. Moreover, the digital nature of the products means enforcing tariffs isn’t as straightforward as it is on physical goods. On top of that, these companies sell to a global audience so tariffs even on a significantly big market base don’t impact the overall business as much.
To come up with our list of gaming stocks that are a good bet despite tariffs, we only considered stocks with a market cap of at least $5 billion.
A close up of a consumer enjoying the company’s games on their mobile device.
Electronics Arts Inc. (NASDAQ:EA)
Electronics Arts Inc. is a video game developer, publisher, marketer and distributor company. It designs and publishes games in different genres including sports, first-person shooter, role-playing, racing, action, and other categories. The company sells its games through retail and online distribution channels and other networks.
EA is set to announce its earnings report later today with the firm expected to report a 187% EPS growth on a slightly declining revenue. The company’s strength in gaming is known to many. However, a new chapter of growth is about to begin with the company launching its EA Sports App. This will provide users with live analytics and game stats in addition to other sports-related content. While EA hasn’t yet outlined a monetization strategy, it is clear that money will come in either through advertising or subscription plans.
Last month, the stock was downgraded by BofA from Buy to Neutral after the company cut down its 2025 net-bookings guidance. Other analysts had a similar opinion about the stock, but a 16% decline so far this year could have all that negativity priced in.
Overall EA ranks 3rd on our list of the gaming stocks that are solid bets despite tariffs. While we acknowledge the potential of EA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as EA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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