8 Best Esports Stocks to Buy According to Hedge Funds

5. Electronic Arts Inc. (NASDAQ:EA)

Number of Hedge Fund Holders: 40

Electronic Arts Inc. (NASDAQ:EA) is a leading American video game company known for developing and publishing popular titles like Madden NFL, The Sims, Battlefield, and FIFA, one of the largest esports games globally. The company is actively involved in the interactive entertainment industry, offering games across various platforms, including consoles, PCs, and mobile devices.

On September 17, 2024, EA hosted its Investor Day, where it outlined its growth strategy focused on building large online communities and creating blockbuster gaming experiences. The company plans to leverage AI to enhance operations and is optimistic about the future of its EA SPORTS brand. Electronic Arts Inc. (NASDAQ:EA) is looking to launch a new Battlefield experience with community testing planned for early 2025.

The company’s management also shared its plan to launch a new EA SPORTS app that aims to expand its business beyond gaming. This socially-driven app will feature sports content, live data, and interactive elements focused on global football, allowing fans to engage with their favorite teams and players. By integrating these features, EA is positioning itself to connect with a broader audience and enhance the overall fan experience, which supports its goal of significant growth in the gaming and entertainment sectors.

In Q1 FY25, Electronic Arts Inc. (NASDAQ:EA) reported net bookings of $1.262 billion, exceeding expectations. This growth was fueled by strong performances from Madden NFL 24 and FC Online. The company’s net revenue was $1.66 billion in the first quarter of fiscal 2025.

With its established franchises and a clear strategy for future growth, Electronic Arts Inc. (NASDAQ:EA) represents a solid investment opportunity in the esports market. The company’s focus on innovation and community engagement positions it well for success in the competitive gaming landscape.

Over the past 3 years, Electronic Arts Inc. (NASDAQ:EA) has achieved a compound annual growth rate (CAGR) of 8% in its revenue, while its net income has grown at a CAGR of 19% during the same period.

According to Insider Monkey’s Q2 database of over 900 hedge funds, 40 hedge funds held stakes in Electronic Arts Inc. (NASDAQ:EA). EA ranks among the top 5 on our list of the best esports stocks to buy according to hedge funds.