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Electronic Arts Tumbles After-Hours

Electronic Arts shares fell nearly 10% in late trade after the company turned in an outlook that fell short of expectations.

Investors scrutinized EA's forecast for the fiscal year, after the company -- which is struggling with high costs and a lackluster slate of games -- sharply cut its guidance for two consecutive years.

For the fiscal year ending March 2011, EA forecast earnings of 50 cents to 70 cents a share on revenue of $3.65 billion to $3.9 billion on a non-GAAP basis.

Both lagged Wall Street's forecast for 74 cents and $4.07 billion, according to Thomson Reuters - and investors went running for the exits.

Is the sell-off overdone, or is there more downside to go? What’s the trade?

If you want a trade I think the shorts lean on this stock a little too hard, says Guy Adami. It could be a buy on Tuesday’s close, he counsels.

On the news I’d be a buyer of Akamai and a seller of GameStop as a bet on the sea change in video games – from cartridges to online, says Brian Kelly.


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Trader disclosure: On February 8th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (NUE), (MSFT); Kaminsky Is Short (LULU); Najarian Owns (AAPL) Call Spread; Najarian Owns (GILD) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (TCK), Is Short (TCK) Calls; Najarian Owns (XLF) Calls; Najarian Owns (CLF) Call Spread

For Dennis Gartman
Funds Managed By Dennis Gartman Are Long Australian Dollars, Canadian Dollars
Funds Managed By Dennis Gartman Are Short British Pound Sterling, Euro,
Swiss Franc
Funds Managed By Dennis Gartman Own (BWLD), (DRI), (PNRA)
Funds Managed By Dennis Gartman Are Short (MT), (NUE), (PEP)

For Brian Kelly
Kanundrum Capital Owns (HOV)
Kanundrum Capital Owns (PHM)
Kanundrum Capital Owns (TOL)
Kanundrum Capital Owns (WY)
Kanundrum Capital Owns (PCL)
Kanundrum Capital Owns (RYN)
Kelly Owns (HOV) Calls
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short U.S. Dollar
Kelly Owns (FXE) Puts

For Tim Seymour
Seygem Asset Management Owned (MTL) On 2/3/10
Seymour Owns (AAPL)
Seymour Owns (BAC)
Seymour Owns (EEM)
Seymour Owns (ETFC)
Seymour Owns (F)
Seymour Owns (INTC)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owns (GFI)
Seygem Asset Management Is Short (BIDU)
Seymour Owns (FXI)


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