Subject: Electronic Arts Q2 results and market reactions

Electronic Arts reported fiscal Q2 results that matter to investors now because they combine operating softness with a looming $55 billion takeover that removes clear forward guidance. EA posted revenue of $1.82 billion and GAAP earnings of $0.54 per share for the quarter ended Sept. 30, 2025, missing consensus by about 2.5% on revenue and roughly 4.7% on EPS. In the short term, misses increase headline volatility for publishers and platform owners across North America and Europe. Over the long term, the proposed Silver Lake–Affinity–PIF buyout would take EA private at a valuation near $55 billion and pause public guidance and buy-side price discovery for at least several quarters. Globally, the numbers tighten investor focus in the U.S. and Europe where large-cap gaming stocks trade heavily; in emerging markets, mobile monetization trends will determine whether bookings recover. Compared with last year’s quarters that benefited from major live-service launches, this quarter shows weaker bookings. That contrast helps explain why platform companies and ad-dependent services are reacting faster than usual.

EA’s results, the takeover and what investors are pricing

EA’s Q2 revenue of $1.82 billion and GAAP EPS of $0.54 came in below Wall Street’s expectations. The company reported revenue 2.45% below consensus and EPS about 4.72% under estimates. Management confirmed the $55 billion take-private proposal from Silver Lake, Affinity Partners and Saudi PIF, and said EA will pause issuing financial forecasts while the transaction is considered. That combination is already changing trading patterns: EA’s volatility rose relative to large-cap peers as implied volatility on options swelled, and block-trade interest increased in the mid-October window when the offer surfaced.

Market participants are re-pricing public multiples. A $55 billion bid implies a takeover multiple several points above EA’s trailing twelve-month revenue, narrowing the gap with recent buyer-precedents in interactive entertainment. Short-term, missing estimates typically weighs on booking-dependent stocks. Longer-term, removing EA from public comps tightens valuation comps for other publishers such as Take-Two.

Take-Two, Roblox and franchise timing: revenue cadence matters

Take-Two closed the most recent session at $251.54, down 1.07% on the day. Analysts continue to point to strong franchise pipelines but are split on near-term cadence. Take-Two’s shares trade with implied expectations that Grand Theft Auto-era monetization and recurring revenue will offset weaker boxed-game cycles. By contrast, Roblox (RDDT) is entering quarterly reporting with a focus on user-engagement metrics rather than one-off launches. Reddit (RDDT) — not to be confused with Roblox — has seen its stock surge 42.6% over 90 days and an eye-popping 160.6% one-year total shareholder return, reflecting strong sentiment around ad monetization and product rollouts.

For publishers, bookings and live-service retention remain the key numbers. EA’s miss underlines how much investor appetite depends on steady bookings. If Take-Two or Roblox report higher-than-expected bookings or monthly active user (MAU) growth in coming quarters, multiples could re-rate. Conversely, sequential declines in bookings will pressure trading multiples and analyst price targets. Brokerage recommendations for Take-Two skew bullish on average, but investors are watching release calendars closely.

Platform owners and ad dynamics: Google, Meta, Comcast and ad-tech flows

Platform owners are set to shape advertiser demand for in-game and streaming inventory. Alphabet’s cloud is reported to be growing at roughly a 30% clip in the latest quarter, a tailwind for compute-hungry studios and creators. Meta is expected to post about a 22% revenue increase in the coming quarter, according to sell-side consensus, which would support higher ad spend into social and connected-game promotions.

Comcast’s NOW TV Latino expansion and its rural broadband investments reflect platform efforts to broaden reach. Comcast’s share performance has lagged; the company posted a year-to-date price return of -21.75% coming into this cycle. That underperformance increases sensitivity to streaming and advertising guidance. Meanwhile, ad-tech names are displaying dispersion: The Trade Desk (TTD) traded at $51.66 and slid 3.64% in the latest session, highlighting how programmatic demand can swing quickly on macro headlines.

These platform moves matter because publishers rely on platform distribution and advertising funnels to convert attention into bookings and direct monetization. Strong cloud growth, resilient ad revenue and expanding broadband footprint would support higher effective monetization per user across both casual and premium titles.

Connectivity and infrastructure: Lumen, AST SpaceMobile, and IoT tests

Lumen’s stock has shown a striking move: a 40.2% gain in the past week, 69.8% over the last month and roughly 79.1% since the start of the year. That rally reflects investor interest in companies that can provide backbone capacity to gaming studios and data-center operators. QTS’s decision to tap Lumen for AI-ready networking also points to growing enterprise demand—QTS and Lumen said the partnership will support next-generation AI data centers, where low-latency links and high-throughput routes matter.

On the wireless and satellite side, BeWhere Holdings successfully connected a standard LTE IoT tracking device on AST SpaceMobile’s direct-to-device satellite network in New Brunswick, Canada. The test validates integration paths for low-power 5G IoT devices and could expand addressable markets for location-aware features in hardware and toys tied to game ecosystems. While AST SpaceMobile’s market data vary intraday, the technical milestone is quantifiable: a completed end-to-end test in a live environment. Separately, analysts comparing Globalstar (GSAT) to VSAT peers highlight expanding IoT revenue streams as measurable upside for satellite-capacity providers.

Together, infrastructure wins and IoT tests reduce friction for cloud gaming, telemetry and real-time multiplayer features that demand both throughput and ubiquitous connectivity.

Conclusion: This reporting cycle ties company-level numbers to market moves. EA’s $1.82 billion quarter and $0.54 EPS, paired with a $55 billion take-private proposal, force a re-assessment of public comparables. Take-Two at $251.54, Roblox and Reddit’s recent returns, plus platform signals from Alphabet and Meta, show how bookings, ad demand and infrastructure spending are producing measurable divergence across equities. Investors watching upcoming earnings for these names will focus on bookings, MAU trends, ad revenue growth and guidance — the hard metrics that determine relative performance over the next two quarters.