UPDATE: Shares of Electronic Arts (NASDAQ: EA) are surging, climbing over 5% on Monday and up 10% since last week, fueled by record-breaking excitement surrounding the new game, Battlefield 6. This first-person shooter has captured massive attention, with the beta testing over the weekend drawing an impressive 521,000 concurrent players at its peak.
BATTLEFIELD 6, set to launch on October 10, has already made waves with its open beta, which ran from August 9-10 and is continuing from August 17-20. The overwhelming response from players has analysts buzzing about the game’s potential impact on EA’s financials.
The excitement is reflected in an upgrade from DA Davidson, which raised EA’s price target by $10 to $160 per share, citing the beta’s success. EA stocks closed at approximately $176 on Monday, already exceeding this new target. The firm noted that there was a constant queue to join servers throughout the beta weekend, highlighting the game’s popularity.
“The stream data confirmed the success of the open beta,” DA Davidson analysts reported, according to the Fly.
EA’s stock performance is also buoyed by a strong fiscal first-quarter report, where the company posted revenues of $1.67 billion and earnings of 79 cents per share, both surpassing analysts’ expectations. Net bookings rose 3.2% to $1.3 billion, and EA maintains its guidance for the full fiscal year, projecting revenues between $7.1 billion and $7.5 billion.
Following this stellar performance, several other analysts have raised their price targets for EA stock. Arete boosted its target to $192 per share, while both Baird and Bank of America raised theirs to $170 and $168, respectively. The median price target now stands at $170, which EA has already surpassed.
As the open beta continues this weekend, further analyst upgrades are anticipated, reflecting the growing optimism surrounding the game. EA stocks are already up 21% year-to-date, with a forward P/E ratio of 20. Investors are keenly watching to see if this momentum can sustain.
The buzz around Battlefield 6 is not just about numbers; it represents a significant moment for EA, showcasing the company’s ability to capture player interest and drive financial growth. As the gaming industry evolves, EA is certainly one to watch.
