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REDWOOD CITY, Calif. - Electronic Arts Inc. (NASDAQ:EA), trading near its 52-week high of $203.75 with a market capitalization of $50 billion, announced Thursday that Battlefield 6 has achieved record-breaking success for the franchise, selling over 7 million copies in its first three days of release. According to InvestingPro analysis, EA’s stock appears overvalued at current levels, despite strong momentum with a 40% price return over the past six months.
According to the company’s press release, the game has set new benchmarks for the Battlefield series with players engaging in more than 172 million online matches since launch. The title also accumulated over 15 million hours watched on streaming platforms during its opening weekend. This success builds on EA’s solid financial foundation, with the company generating $7.5 billion in revenue and maintaining a healthy 79% gross profit margin over the last twelve months.
"Battlefield 6 was built with our fans," said Byron Beede, General Manager of Battlefield. "From the initial concept through to the implementation of Battlefield Labs and into the Open Beta, we have been obsessed with player feedback."
The game features new multiplayer modes, a single-player campaign, and the return of Portal, which provides creator tools for players to customize their experience.
EA plans to release seasonal content, with Season 1 "Rogue Ops" scheduled to launch on October 28. This update will include a new map called Blackwell Fields and a 4v4 mode.
Battlefield 6 is currently available on PlayStation 5, Xbox Series X/S, and PC through Steam, EA App, and Epic Games Store. The standard edition is priced at $69.99, while the Phantom Edition, which includes additional content and cosmetics, costs $99.99.
Vince Zampella, Executive Vice President at Electronic Arts, stated that the launch represents "just the beginning" for the game, with more content planned in the coming weeks.
The game follows an Open Beta in August that the company described as record-shattering in terms of player participation. Electronic Arts indicated that Battlefield 6 is intended to be the first step in building what they call a "connected Battlefield universe" for the franchise. For investors seeking deeper insights into EA’s financial health and growth potential, InvestingPro offers exclusive access to 15+ additional ProTips and comprehensive analysis through their Pro Research Report, available for over 1,400 US stocks including EA.
In other recent news, Electronic Arts announced a $55 billion deal to go private, with the acquisition led by PIF, Silver Lake, and Affinity Partners at a price of $210 per share in cash. Following this announcement, Roth/MKM downgraded Electronic Arts from Buy to Neutral, citing limited upside potential, and adjusted its price target to $210. UBS also raised its price target for Electronic Arts to $210, maintaining a Neutral rating on the stock. Similarly, BMO Capital increased its price target to $210 while keeping a Market Perform rating.
Jefferies downgraded Electronic Arts from Buy to Hold, raising its price target from $200 to $210 after the buyout news. HSBC also downgraded the stock to Hold, maintaining a price target of $191 due to valuation concerns. These developments reflect the significant impact of the acquisition news on analyst ratings and price targets for Electronic Arts. The buyout offer represents a 25% premium, influencing analysts’ adjustments to their expectations. Despite the downgrades, the consensus price target among analysts has aligned closely with the acquisition offer.
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