Roblox vs. Electronic Arts: Which Stock Has More Upside Now?

The gaming industry has entered a pivotal phase, wherein innovation, user engagement and platform expansion are reshaping investor expectations. Two names often at the center of the conversation are Roblox Corporation (RBLX) and Electronic Arts Inc. (EA).While Roblox thrives on its immersive creator-driven ecosystem and appeal to younger audiences, EA continues to leverage its powerhouse franchises and live-service model to drive steady growth. As investors weigh the contrasting strategies of a next-gen platform versus an established content giant, the question remains: which stock offers the stronger growth potential in today’s evolving gaming landscape?Case for RBLXRoblox is experiencing exceptional growth, driven by both its creator ecosystem and global expansion. In second-quarter 2025, bookings soared 51% year over year to $1.4 billion, with revenues rising 21%. Daily active users increased 41% to 111.8 million, driven by significant growth in the APAC region and emerging markets such as India and Indonesia. Engagement reached a record 27.4 billion hours, driven by viral hits like Grow a Garden and increasing traction among older users, who now make up 64% of the base.Looking ahead, Roblox is doubling down on initiatives that can extend its momentum. Key investments include enhanced discovery algorithms, global infrastructure, AI-driven content creation and expanded monetization tools such as Rewarded Video ads via Google. Its Creator Rewards program is incentivizing user acquisition, while new genres like RPGs and racing are broadening appeal. Backed by $4 billion in net liquidity, the company has ample flexibility to invest in technology, partnerships and global reach, positioning Roblox as a high-growth player in the evolving gaming landscape.However, Roblox continues to deliver impressive growth in engagement and bookings, but profitability remains a sticking point. The company reported a loss of 41 cents per share, highlighting that heavy spending and rising costs are still weighing on the results.Much of Roblox’s recent momentum has been tied to breakout hits like Grow a Garden, which, despite strong early adoption, may not sustain its popularity over time, adding volatility to performance. Management itself flagged this risk by adopting a cautious tone in its guidance. At the same time, developer payouts are climbing, which strengthens creator loyalty but adds to operating expenses, while monetization per user still trails more mature gaming categories.Beyond financial pressure, Roblox is navigating several operational challenges. Advertising remains an untapped revenue stream and will take time to scale, even with its new Google partnership. The company also faces seasonality risks, with much of the fourth-quarter 2025 performance depending on late-quarter bookings.To support rapid user and engagement growth, Roblox must continue investing in infrastructure, safety and discovery tools, though these efforts require significant resources. Leadership transitions, such as the departure of Manuel Bronstein, add uncertainty.International expansion is a bright spot, but its success will hinge on sustaining translation quality, infrastructure improvements, and local monetization strategies. Overall, while Roblox’s growth story is compelling, it comes with meaningful execution and profitability hurdles.Case for EAElectronic Arts began fiscal 2026 with a stronger-than-expected quarter, showcasing the resilience of its portfolio, and the benefits of deliberate investment in live services and blockbuster franchises. In first-quarter fiscal 2026, net bookings were $1.3 billion, up 3% year over year and above guidance, while EPS exceeded expectations.The upside was driven by steady momentum across Global Football, Star Wars, Apex Legends and the newer Split Fiction title. This solid performance highlights the breadth of EA’s portfolio, which continues to balance annualized sports titles with live-service driven communities.A major positive is EA SPORTS, which continues to be the company’s growth engine. The Global Football franchise, now branded as EA SPORTS FC, once again showed healthy engagement across console, mobile and online. FC Mobile in particular delivered a record quarter with more than 50 million installs and daily active user growth, reflecting EA’s ability to expand geographically and tap into new demographics.Innovative collaborations also played a role, such as integrating Apple’s MLS Season Pass into FC Mobile, blending real-world sports content with interactive gameplay.The American Football ecosystem also strengthened EA’s position. The reintroduction of College Football in 2025 created a surge of enthusiasm, and while management expects demand to normalize, the latest installment (College Football 26) launched with strong reviews, immersive gameplay, and sustained engagement in Ultimate Team.Meanwhile, Madden NFL 26 is being positioned as a step-change title, with AI-driven gameplay innovations and enhanced authenticity that tie closely to the real NFL season. EA is also bundling NCAA and Madden offerings, which have been well-received and are expected to help deepen the sports ecosystem.Despite the strong start, several challenges can pressure EA’s near-term performance. The most notable is live services outside of core titles. In first-quarter fiscal 2026, live services bookings declined 1% year over year, with growth excluding Apex Legends limited to the low single digits. While the Global Football ecosystem continues to grow, the dependence on a handful of franchises leaves EA exposed if engagement falters or competitors capture market share.How Does Zacks Consensus Estimate Compare for RBLX & EA?The Zacks Consensus Estimate for RBLX’s 2025 sales implies year-over-year growth of 37%. Then again, the consensus estimate for loss per share in the year is pegged at $1.71, whereas it incurred a loss of $1.44 in the prior-year quarter. However, in the past 30 days, loss estimates have widened for 2025. Image Source: Zacks Investment Research The Zacks Consensus Estimate for EA’s fiscal 2026 sales and EPS implies year-over-year growth of 7.1% and 21.1%, respectively. Earnings estimates for fiscal 2026 have increased in the past 30 days. Image Source: Zacks Investment Research Price Performance & ValuationThe RBLX stock has declined 3.2% in the past month, against its industry’s growth of 1.3%. Conversely, EA shares have risen 11.6% in the same time frame.Price Performance Image Source: Zacks Investment Research RBLX is trading at a forward 12-month price-to-sales ratio of 10.99X, above its median of 7.23X over the last year. EA’s forward sales multiple sits at 5.35X, above its median of 4.84X over the same time frame.P/S (F12M) Image Source: Zacks Investment Research End NotesInvestors may want to avoid Roblox for now as its growth story, while compelling, remains overshadowed by persistent profitability challenges, heavy reliance on breakout hits, and rising operating costs that add volatility and execution risk.In contrast, Electronic Arts offers a more balanced profile, underpinned by its established sports franchises, stable live-service communities, and strong pipeline of upcoming releases. EA’s ability to leverage its diversified portfolio and cultural partnerships positions it for steadier long-term performance, making it a stock worth holding on to in today’s gaming landscape.RBLX currently carries a Zacks Rank #4 (Sell), whereas EA has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Electronic Arts Inc. (EA): Free Stock Analysis Report Roblox Corporation (RBLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks