Why Electronic Arts Stock Just Jumped (Another) 5% Today

Fortnite snowman character

What happened

Fewer than 24 hours after the stock of Electronic Arts (NASDAQ: EA) popped more than 5% on Monday in response to an upgrade from Merrill Lynch, it rose almost another 5% today. To be precise, it was up 4.7% as of 11:25 a.m. EST on Tuesday on news that its Apex Legends game is doing even better than previously expected.

So what

You may have heard that on Friday, EA reported that its new Apex Legends battle-royale video game had amassed 10 million players in its first 72 hours on the market. Get ready to update that number -- and maybe update it some more.

On Monday after close of trading, Electronic Arts announced that through its first seven days on the market, Apex Legends had grown its user base to more than 25 million players.

This news sparked a quick reaction on Wall Street, with analysts at Robert W. Baird -- who already liked the stock enough to rate it as outperform -- hiking their price target to $106 a share.

Be afraid, Fortnite . EA's Apex Legends game is heating up. Image source: Epic Games.

Now what

If Apex Legends got 10 million players in its first three days, and passed 25 million players by Day 7, it appears to be growing faster the more time goes by.

Granted, a week of data is still a very small sample size by which to judge the success of Apex Legends . There's no guarantee that the game's growth won't hit a wall this week or next, or the week after that. Then again, even Epic Games' Fortnite took 40 days to pass 25 million users. Whatever happens next, by that yardstick at least, Apex Legends is already a greater success than Fortnite .

10 stocks we like better than Electronic Arts

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Electronic Arts wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of January 31, 2019

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.