6 Best Video Game Stocks To Invest In

3. Electronic Arts (NASDAQ:EA)  

Number of Hedge Fund Investors: 40

Electronic Arts (NASDAQ:EA) is one of the world’s largest video game companies known for developing hit franchises like FIFA, Madden NFL, and The Sims. The company operates across various gaming platforms, including consoles, mobile devices, and PCs.

Electronic Arts (NASDAQ:EA) leverages microtransactions and subscriptions to enhance user monetization. In its Investors Day, management outlined several operational highlights, including its plans to double its total audience to over a billion people in the next five years, with Sims being a key element of this. Additionally, the company’s adoption of AI is expected to be financially accretive.

The company’s Investor Day also highlighted its progress in developing a Sims movie, which is expected to significantly contribute to its ecosystem. The Sims culture is being kept alive, and Electronic Arts (NASDAQ:EA) is exploring new ways to expand its reach, including a potential partnership with Margot Robbie’s production company. Furthermore, the company’s business is expected to benefit from the growing demand for sports video games, with a socially driven experience being developed with its new EA Sports App. This aligns with the company’s trend to bridge out of pure video gaming and into a broader focus on entertainment, which analysts believe is headed toward community development to create network effects and support its financial growth.

According to a report by Fortune Business Insights, the global esports market size was valued at $2.06 billion in 2024 and is projected to grow to $9.29 billion by 2032, exhibiting a CAGR of 20.7%. Electronic Arts (NASDAQ:EA) is poised for significant growth and expansion, driven by its strategic plans, leveraging AI technology, and capitalizing on the rising demand for sports video games, which solidify its position as a leader in the market and makes it an attractive investment opportunity

Analysts forecast the company to grow its earnings by 9.75% this year and have a consensus for the stock’s Buy rating, with a median price target of $159.24, suggesting a potential upside of almost 9.6% from current levels. As of the second quarter, Electronic Arts’ (NASDAQ:EA) stock is held by 40 hedge funds for stakes worth $819.77 million. According to Insider Monkey, D E Shaw is the largest shareholder in the company and owns stocks worth $193.72 million.