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Electronic Arts Inc. (NASDAQ: EA) Under Investigation: Impact on Stock Performance
Jan 28, 2025 7:00 PM - Danny Green(Last modified: Jan 29, 2025 10:07 AM)
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- Rosen Law Firm investigates potential securities claims against Electronic Arts Inc. (NASDAQ: EA) for possibly misleading investors.
- EA's stock experienced a significant 16% drop following a revised fiscal year 2025 guidance announcement.
- BMO Capital downgrades EA's stock rating from "Outperform" to "Market Perform" amidst concerns over future performance.
Electronic Arts Inc. (NASDAQ: EA) is a major player in the video game industry, known for popular franchises like FIFA, Madden NFL, and The Sims. Recently, EA has come under scrutiny as the Rosen Law Firm investigates potential securities claims against the company. This investigation is due to allegations that EA may have misled investors with inaccurate business information. The situation intensified after EA revised its fiscal year 2025 guidance, predicting a mid-single-digit decline in live services net bookings, primarily due to changes in Global Football. This announcement led to a significant 16% drop in EA's stock on January 23, 2025.
The Rosen Law Firm, known for its expertise in securities class actions, is preparing a class action to recover investor losses. They offer a contingency fee arrangement for those who purchased EA securities. The firm has a track record of successful settlements, including the largest ever against a Chinese company. Investors are encouraged to contact the Rosen Law Firm to join the prospective class action and seek compensation.
On the same day as EA's stock drop, BMO Capital downgraded EA from an "Outperform" rating to a "Market Perform" rating, as highlighted by TheFly. At the time of this downgrade, EA's stock was priced at $142.35. This downgrade reflects concerns about EA's future performance following the revised guidance. The current stock price of EA is $115.83, showing a decrease of 1.76% or $2.08, with fluctuations between $115.36 and $117.585 today.
Over the past year, EA's stock has seen a high of $168.5 and a low of $115.21. The company's market capitalization stands at approximately $30.38 billion, with a trading volume of 2,013,409 shares. These figures indicate the volatility and uncertainty surrounding EA's stock in light of recent developments. Investors are closely monitoring the situation as the investigation unfolds and the class action progresses.
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