Electronic Arts (EA) Surges in 2025 Ahead of $55 Billion Buyout Deal

The Harbor Capital Advisors released its “Mid Cap Value Fund’s” Q4 2025 investor letter. A copy of the letter can be downloaded here. Harbor Mid Cap Value Fund, subadvised by LSV Asset Management, delivered solid outperformance in the fourth quarter of 2025, with the Institutional Class returning 4.07% versus 1.42% for the Russell Midcap Value Index, benefiting from strength in value stocks as the Russell Midcap Growth Index declined 3.7% during the period. U.S. equities broadly advanced, with the S&P 500 Index rising 2.7% in the quarter and 17.9% for the full year, while mid-caps lagged, with the Russell Midcap Index up just 0.2% in Q4. For 2025, the Fund gained 15.95% (Institutional Class), outperforming the benchmark’s 11.05% return. Attribution data show a total quarterly excess return of 2.82%, largely from selection effects, underscoring the manager’s quantitative value discipline focused on fundamental undervaluation, improving momentum, and risk control. Looking ahead, management noted that while AI-driven large-cap leadership has elevated valuations in certain segments, mid- and small-cap value stocks continue to trade at more attractive multiples, positioning the Fund to capitalize on opportunities within economically sensitive and cash-generative businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Harbor Capital Advisors' Mid Cap Value Fund highlighted stocks like Electronic Arts Inc. (NASDAQ:EA). Electronic Arts Inc. (NASDAQ:EA) is a global interactive entertainment company that develops and publishes video games across console, PC, and mobile platforms. The one-month return of Electronic Arts Inc. (NASDAQ:EA) was -1.40% while its shares traded between $128.02 and $204.89 over the last 52 weeks. On February 26, 2026, Electronic Arts Inc. (NASDAQ:EA) stock closed at approximately $201.07 per share, with a market capitalization of about $50.319 billion.

Harbor Capital Advisors' Mid Cap Value Fund stated the following regarding Electronic Arts Inc. (NASDAQ:EA) in its Q4 2025 investor letter:

"We sold our position in Electronic Arts Inc. (NASDAQ:EA) in the Communication Services sector. Electronic Arts did well in 2025, advancing approximately 40% for the year. In late September, the company announced an agreement to be acquired by Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners for $55 billion. The Fund often benefits from takeovers, as the companies we hold tend to be attractively priced, solid businesses that are undervalued, as was the case with Electronic Arts."

Electronic Arts Inc. (NASDAQ:EA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held Electronic Arts Inc. (NASDAQ:EA) at the end of the fourth quarter, which was 62 in the previous quarter. While we acknowledge the risk and potential of Electronic Arts Inc. (NASDAQ:EA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Electronic Arts Inc. (NASDAQ:EA) and shared the bearish thesis. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.