Why Electronic Arts Stock Just Crashed 17%

Is it game over for Electronic Arts (NASDAQ: EA)? Shares of the video games mogul crashed 17.5% through 11:55 a.m. ET Thursday morning after preannouncing fiscal Q3 2025 earnings last night.Wall Street analysts expected EA to earn at least $1.15 per share in fiscal Q3, but the actual news will be worse. To get ahead of the bad news, management decided to "preannounce" earnings last night, and it seems the magic number will be $1.11. The news gets worse. Heading into fiscal 2025, EA had told investors it would grow its "live services net bookings" -- that's the company's net revenue, plus any changes in deferred net revenue for online-enabled games -- in the mid-single digits this year. The company is sticking with the "mid-single digits" bit of its guidance, but now it's saying it will be a mid-single-digits decline, rather than growth. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool