EA shares plunge 19%, on track for worst day since dot-com bubble

EA shares plunge 19%, on track for worst day since dot-com bubble


A sign is posted in front of the Electronic Arts headquarters in Redwood City, California, on March 30, 2023.

Justin Sullivan | Getty Images

Shares of Electronic Arts headed for their steepest drop since 1999 after the video game publisher cut its full-year bookings guidance, due mostly to challenges with its soccer franchise.

The stock plummeted 19% to $115.86 as of midday Thursday. That would be its worst day on the market since the dot-com bubble and the stock’s third-biggest drop since EA’s public market debut in 1990.

For the fiscal third quarter, which ended Dec. 31, EA said late Wednesday that it expects to report about $2.215 billion in net bookings, versus previous guidance of $2.4 billion to $2.55 billion. Revenue in the December quarter was about $1.88 billion, with $1.11 in diluted earnings per share, the company said in a statement.

EA said Dragon Age and its EA Sports FC franchise “underperformed our net bookings expectations.”

“Weakness has been seen largely from the Global Football franchises,” analysts at Roth Capital Partners wrote in a report on Thursday, calling the earnings preannouncement a “big stumble.” They have the equivalent of a hold rating on the stock.

EA said it expects net bookings for the full fiscal year, ending March 31, of between $7 billion and $7.15 billion, below previous guidance of $7.5 billion to $7.8 billion. EA says net bookings include physical game sales as well as revenue from online games.

The warning points to weakness in the most prominent soccer video game franchise since 1993. It used to fall under the FIFA branding, but in 2022, EA’s deal with FIFA ended and the last two EA soccer games have been sold as EA Sports FC.

The company also said that role-playing game Dragon Age had 1.5 million players during the quarter, which was about 50% below its expectations.

EA said it expects global football sales to be down on a year-over-year basis, and said bookings from online sales, or live services, would also decline in fiscal 2025. The company’s soccer franchise accounted for the majority of the live services shortfall.

EA plans to release full third-quarter results on Feb. 4.

Don’t miss these insights from CNBC PRO

Watch CNBC's full interview with Electronic Arts CEO Andrew Wilson



Source

Intel spins out AI robotics company RealSense with  million raise
Technology

Intel spins out AI robotics company RealSense with $50 million raise

Brian Krzanich, chief executive officer of Intel Corp., right, shows the collision avoidance feature of an AscTec Firefly drone with Intel RealSense cameras during the 2015 Consumer Electronics Show (CES) in Las Vegas, Nevada. Patrick T. Fallon | Bloomberg | Getty Images Intel is spinning out its artificial intelligence robotics and biometric venture as more […]

Read More
China’s ‘instant commerce’ price war sees alt=
Technology

China’s ‘instant commerce’ price war sees $0.30 drinks and billions in subsidies doled out

A Meituan food delivery courier rides an electric scooter in Chongqing, China, on March 29, 2025. Cheng Xin | Getty Images News | Getty Images In China’s fiercely competitive market, the latest price war is playing out in the growing “instant commerce” sector, where companies are launching massive subsidies and other incentives to get consumers […]

Read More
Grok 4 appears to seek Elon Musk’s views when answering controversial questions
Technology

Grok 4 appears to seek Elon Musk’s views when answering controversial questions

The X logo on a phone. Nurphoto | Nurphoto | Getty Images When xAI’s Grok 4 chatbot was launched on Wednesday, users and media outlets quickly began pointing out examples of it consulting its owner Elon Musk’s views on controversial matters.  CNBC was able to confirm that when asked to take a stance on some […]

Read More