- Ziggma
- Posts
- 💰 Electronic Arts to Go Private
💰 Electronic Arts to Go Private
Big moves decoded: ORCL, PCAR, and BA
In partnership with
Market Performance
S&P 500: 6,604.72 ⬇️ 0.50%
Nasdaq: 22,384.70 ⬇️ 0.50%
Dow Jones: 45,947.32 ⬇️ 0.38%
EA Jumps by 15% Following Buyout News
Electronic Arts (EA) surged 15% on Friday following news of a potential $50 billion leveraged buyout, the largest in Wall Street history.
A consortium including Saudi Arabia's Public Investment Fund, Silver Lake, and Jared Kushner's Affinity Partners could announce the deal as early as this week.
Saudi Arabia's PIF has been systematically building gaming infrastructure as part of its Vision 2030 diversification strategy, having already invested billions in Pokémon Go makers and Monopoly Go's parent company.
For them, EA's sports portfolio, particularly the globally popular FC soccer franchise, represents cultural influence on par with owning sports teams or film studios.
With megadeals finally rebounding in 2025, thanks to CEO confidence, consolidation logic, and cheaper capital costs expected from Fed rate cuts, EA becomes an ideal target.
EA’s consistent cash flows from annualized sports titles, such as Madden NFL and the upcoming Battlefield 6, create predictable revenue streams that private equity investors love.
EA stock currently has a Ziggma Stock Score of 43, and ranks in the bottom half percentile in terms of growth and valuation - suggesting plenty of value creation potential for the buyout investor group.
Our Takeaway
This deal signals that gaming has officially become critical infrastructure for global influence, not just entertainment.
Expect more consolidation as sovereigns and PE firms chase stable, recurring revenue in an industry that's proven recession-resistant.
The Real Traders Aren't on CNBC
Your current options for finding stock trades:
Option 1: Spend 4 hours daily reading everything online
Option 2: Pay $500/month for paywalled newsletters and pray
Option 3: Get yesterday's news from mainstream financial media
All three keep you broke.
Here's where the actual edge lives:
Twitter traders sharing real setups (not TV personalities)
Crowdfunding opportunities before they go mainstream
IPO alerts with actual timing
Reddit communities spotting trends early
Crypto insider takes (not corporate PR)
The problem? You'd need to be terminally online to track it all.
Stocks & Income monitors every corner where real money gets made. We send you only the actionable opportunities. No fluff, no yesterday's headlines.
Five minutes daily. Walk away with stock insights you can actually act on every time.
Stocks & Income is for informational purposes only and is not intended to be used as investment advice. Do your own research.
Market Overview 📈
Stocks snapped a three-day losing streak on Friday, climbing on inflation data that kept expectations for a rate cut intact.
The core PCE index rose 2.9% annually as expected, alleviating concerns that yesterday's strong jobs data and upward GDP revision to 3.8% might derail the Fed's easing plans.
After Thursday's jobless claims and GDP revision undermined the dovish narrative, Friday's PCE data restored confidence that the Fed could still deliver two quarter-point cuts as projected.
Consumer sentiment fell to 55.1 in September, but here's the kicker: sentiment held steady among consumers with larger stock holdings while dropping for those with smaller or no holdings.
This divergence highlights how wealth effects from market gains are creating a two-tiered economic experience.
The week still ended lower for all major indices despite Friday's bounce, with the Nasdaq and S&P 500 posting their first losing week in four.
Oracle's continued weakness dragged on AI stocks, raising questions about the sustainability of the tech rally that's driven markets to new highs this month.
Stock Moves Deciphered 📈
🛻 Paccar (PCAR) surged over 5% after President Trump announced a 25% tariff on imported heavy trucks effective October 1st. The maker of Peterbilt and Kenworth trucks will benefit significantly from reduced foreign competition in the domestic market.
✈ Boeing (BA) rallied after the FAA announced it will allow limited delegation for issuing airworthiness certificates on some 737 MAX and 787 aircraft starting Monday.
Turkish Airlines' order for 75 Boeing 787s and 150 additional 737 MAX planes provided further momentum for the aerospace giant.
🥔 Lamb Weston Holdings (LW) gained following the announcement of a $0.37 quarterly dividend. The potato processor's dividend news outweighed analyst concerns about upcoming earnings, boosting investor confidence in the stock.
Headlines You Can't Miss 👀
📈 BMO Capital raises S&P 500 year-end target to 7,000, implying 6% upside from current levels.
💰 Russell 2000 snaps seven-week winning streak as small caps fall 0.8% for the week.
🛡️ Trump announces 25% tariff on imported heavy trucks, effective October 1st, boosting domestic manufacturers.
📊 Core PCE inflation rises 2.9% year-over-year, matching expectations and keeping hopes for a Fed rate cut alive.
🏢 UBS says high valuations are not a clear 12-month signal, points to earnings growth and Fed policy as key drivers.
🎮 Gaming consolidation accelerates - The EA deal would be the latest in a string of major industry acquisitions.
Trending Stocks 📊
🛍️ Costco (COST) fell despite reporting earnings per share of $5.87 vs. estimates of $5.80 per share.
Same-store sales rose 6.4%, marking the second consecutive quarter of deceleration, raising concerns about consumer spending patterns amid economic uncertainty.
📉 Oracle (ORCL) continued its weekly slide, falling for the third consecutive day as investors questioned the sustainability of AI trade momentum.
The software giant has become a key barometer for artificial intelligence stock performance, with its weakness dragging on the broader tech sector.
🤖 Intel (INTC) surged 4% on reports that the chipmaker has approached Apple, Taiwan Semiconductor, and other companies about potential investments.
The Wall Street Journal report suggests Intel is actively seeking strategic partnerships to bolster its competitive position in the semiconductor industry.
What’s Next?
Key earnings and macro news 👇
September historically ranks as the worst month for equities, with the S&P 500 averaging 4.2% declines over the past five years.
Nike (NKE), a consumer spending bellwether, is scheduled to report its quarterly results on Tuesday.
Paychex (PAYX), an indicator of small business health, is scheduled to report earnings this Tuesday before the market opens.
Monday, Sep 29: Pending home sales (housing market trajectory indicator)
Tuesday, Sep 30: Consumer Confidence Index (reflects spending sentiment)
Chart of the Day
Source: Chartr
Meme of the Day
Great investing starts with great information.
Forward The Market Scoop to anyone who wants to stay ahead of the market through a pertinent and entertaining newsletter format.
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please exercise caution and conduct your own research.