Electronic Arts (NASDAQ:EA) stock was down 0.90% in mid-afternoon trading on July 8. Shares have dropped 5.8% over the past three months. Shares took a hit after the release of season 2 of Apex Legends failed to generate the interest EA was looking for. It received around 50,000 daily viewers on Twitch, which is far below expectations.
Other social media engagement on Reddit and other Twitch channels has shown better numbers, which has analysts like Jeff Cohen at Stephens remaining bullish on the stock. In the fiscal year 2019 EA reported continued strong engagement for its FIFA franchise. Digital net revenue rose to $3.71 billion compared to $3.45 billion in the prior year.
EA forecasts improved net revenues in fiscal year 2020, with net income receiving a huge boost from a one-time tax benefit associated with the move of its International business to Switzerland. The company is expected to release its next batch of earnings later this month. Gaming has become a bit of a minefield for investors recently, but EA stock is worth a look right now.
Shares currently have a price-to-earnings just below 30, but its consensus forward P/E stands at 21. The stock is trading at the low end of its 52-week range. Shares had an RSI of 43 at the time of this writing as EA is trending towards technically oversold territory. The response to the Apex Legends season 2 release looks overdone. I like EA at its current price point.
