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Visitors play the ‘EA Sports FC 25’ game in front of a placard with England’s midfielder Jude Bellingham at the Electronic Arts booth during the media day at the Gamescom video games trade fair in Cologne, western Germany on Aug. 21, 2024. 

Ina Fassbender | AFP | Getty Images

Electronic Arts slashed its full-year bookings guidance on Wednesday, blaming the shortfall on underperforming games, notably its soccer franchise, EA Sports FC. The shares dropped 7% in extended trading.

For the fiscal third quarter, which ended Dec. 31, EA said it expects to report about $2.215 billion in net bookings, versus previous guidance of $2.4 billion to $2.55 billion.

Revenue in the December quarter will be about $1.88 billion, with $1.11 in diluted earnings per share, the company said in a statement.

EA said it expects net bookings for the full fiscal year, ending March 31, of between $7 billion and $7.15 billion, below previous guidance of $7.5 billion to $7.8 billion. EA says net bookings include physical game sales as well as revenue from online games.

The warning reveals weakness in the most prominent soccer video game franchise since 1993. It used to fall under the FIFA branding, but in 2022 EA’s deal with FIFA ended and the last two EA soccer games have been sold as EA Sports FC.

The company also said that “Dragon Age,” a role-playing game for game consoles such as Sony PlayStation and Microsoft Xbox, had 1.5 million players during the quarter, which underperformed the company’s expectations by nearly 50%.

“During Q3, we continued to deliver high-quality games and experiences across our portfolio,” EA CEO Andrew Wilson said in the statement. “However, Dragon Age and EA SPORTS FC 25 underperformed our net bookings expectations.”

EA said that while its soccer franchise, which it calls Global Football, had seen two years of double-digit growth in net booking, it started to see a slowdown during the December quarter. The company said that it expects Global Football sales to be down on a year-over-year basis, and said that bookings from online sales, or live services, would also decline in fiscal 2025. The company’s soccer franchise, accounted for the majority of the live services shortfall.

EA said that recently updated FC 25 with new content, improved gameplay, and an annual “Team of the Year” update, which it says was well-received by players.

The warning comes weeks ahead of EA’s planned third-quarter earnings on Feb. 4.

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Amazon’s Whole Foods cites Trump’s NLRB purge as grounds for rejecting union win

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Amazon's Whole Foods cites Trump's NLRB purge as grounds for rejecting union win

An Amazon Prime delivery van sits parked outside of a Whole Foods Market grocery store on August 26, 2024 in El Segundo, California. 

Patrick T. Fallon | Afp | Getty Images

Whole Foods, the Amazon-owned grocery chain, has asked the National Labor Relations Board to overturn a union victory at a Philadelphia store, pointing to President Donald Trump’s recent ouster of several top officials at the agency.

Trump last week fired former NLRB chair Gwynne Wilcox and the agency’s top lawyer, Jennifer Abruzzo. Wilcox’s firing leaves just two remaining members on the five-member NLRB panel, which already had two vacancies at the time she was dismissed. Wilcox sued Trump on Wednesday, alleging her firing was a “blatant violation” of law.

With only two sitting members on the board, the NLRB lacks the necessary quorum to issue decisions on labor disputes, stymying a key function of the labor board.

Whole Foods is disputing the results of a January election at its Spring Garden, Philadelphia, store, where employees voted 130-100 in favor of joining the United Food and Commercial Workers Union. The vote marked the first successful organizing effort at Whole Foods since Amazon acquired the upscale grocer for $13.7 billion in 2017.

In a filing submitted to the NLRB on Monday, Whole Foods argued that “in the absence of a Board quorum, the Regional Director lacks statutory authority to investigate objections or certify the results, or otherwise engage in representation case procedures, including investigating objections or conducting the objections process.”

The objection threatens to set up long legal negotiations and further delays to the start of negotiations on a collective bargaining agreement with workers and the UFCW.

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Wendell Young, president of UFCW Local 1776, the chapter representing the workers, said in a statement that the union “fully expected Whole Foods to try to stall this process.”

“Amazon has a well-documented history of using baseless objections to undermine the rights of workers seeking representation, and this case is no different,” Young said. “Their goal is clear: they don’t want to bargain in good faith with their workers. But this fight is far from over.”

Whole Foods previously said it was “disappointed” by the outcome of the election. It also argued in the Monday filing that the NLRB “tainted” the results of the election by limiting the company from communicating its views on unionization. Last November, the agency ruled that captive audience meetings, or mandatory employee meetings typically called by employers during union campaigns, are unlawful.

Whole Foods also accused the UFCW in its objections of intimidating employees who supported the company.

The company told CNBC in a statement that the UFCW 1776 “illegally interfered” in its employees “right to a fair vote” at the Philadelphia store.

Amazon has also faced mounting labor pressure in it warehouse operations of late. Workers at Amazon’s sprawling Garner, North Carolina, warehouse will begin voting next week on whether to unionize. In December, Amazon delivery and warehouse workers, alongside the Teamsters union, held strikes at seven facilities during the peak holiday shopping season.

As part of her lawsuit, Wilcox is seeking an injunction for her immediate reinstatement to the board. She said her firing amounted to “an immediate and indefinite halt” to all of the NLRB’s regulatory activity.

— CNBC’s Kevin Breuninger contributed to this report.

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Amazon set to report earnings after the bell

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Amazon set to report earnings after the bell

Amazon CEO Andy Jassy speaks at the Bloomberg Technology Summit in San Francisco on June 8, 2022.

David Paul Morris | Bloomberg | Getty Images

Amazon is slated to report fourth-quarter earnings Thursday after the market close.

Here’s what analysts are expecting:

  • Earnings: $1.49 per share expected, according to LSEG
  • Revenue: $187.3 billion expected, according to LSEG

Wall Street is also watching several other numbers in the report:

  • Amazon Web Services: $28.8 billion, according to StreetAccount
  • Advertising: $17.4 billion, according to StreetAccount

Analysts are projecting revenue growth of roughly 10% during the quarter, which includes results from the holiday shopping season. Online spending jumped nearly 9% to $241.1 billion in November and December, according to data from Adobe Analytics, which tracks sales on retailers’ websites. That was slightly higher than analysts’ forecast for sales of $240.8 billion.

Operating income during the fourth quarter is expected to grow 44% year over year to roughly $19 billion, according to FactSet estimates.

The company’s bottom line has benefited from CEO Andy Jassy’s cost-cutting campaign, which has been ongoing since late 2022. The company laid off more than 27,000 employees in 2022 and 2023, and it’s had smaller rounds of job cuts in 2024 that have stretched into this year. Amazon has also continued to wind down some of its more experimental and unprofitable initiatives.

Amazon rounds out a busy earnings period for the top tech companies. Google parent Alphabet on Tuesday posted disappointing fourth-quarter revenue. Apple, Meta and Microsoft reported results last week.

Wall Street will be looking for any commentary from Amazon about the impact of President Donald Trump’s recently announced tariffs on its business. Tariffs on Canada and Mexico are now on hold for one month, while the import taxes remain in place for China.

The company has long connected Chinese manufacturers to American shoppers through its sprawling third-party marketplace. By some estimates, China-based merchants outnumber American sellers on the platform, according to data from Marketplace Pulse.

Amazon’s first-party retail business has the highest exposure to Trump’s tariffs on Chinese imports among the e-commerce companies it tracks, analysts at Morgan Stanley wrote in a Monday note. The analysts estimate that 25% of products sold by Amazon’s first-party retail business come direct from China.

Over the years, Amazon has moved away from first-party sales to third-party sellers, which now account for 60% of products sold on the site.

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During the fourth quarter, Amazon launched its competitor to Temu and Shein, called Haul, which offers low-cost apparel, jewelry, electronics and other items. Trump’s tariffs also took aim at the “de minimis” trade exemption that has allowed direct-from-China services like Amazon Haul to bypass duties and taxes on packages worth less than $800. Prices on Amazon Haul could rise as a result of Trump shutting the de minimis loophole.

The company’s investments in artificial intelligence are also likely to be an area of focus.

Amazon planned to spend about $75 billion on capex in 2024, Jassy said last quarter, adding that he suspected the company would spend more in 2025. The jump in spending is primarily being driven by AI investments, Jassy said.

An AI model created by Chinese startup DeepSeek has captured headlines and roiled markets in recent weeks. DeepSeek claims it only took two months and less than $6 million to develop its R1 model, which it says rivals OpenAI’s o1. The announcement caught Wall Street and Silicon Valley by surprise, challenging the assumption that tech companies must spend heavily on chips and data centers in order to build cutting-edge AI models.

Amazon has been racing to release new AI products and features as it looks to keep up with its competitors. The company in December launched a new set of AI models, called Nova. The company also offers Bedrock, which lets users access AI models from Amazon and others, and an AI chatbot for shopping called Rufus.

The company is expected to release an updated version of its Alexa digital assistant with AI features. It first previewed the redesigned Alexa in 2023, though the rollout has reportedly been slowed by technical challenges, according to Bloomberg. In October, Jassy said the new Alexa could launch “in the near future.”

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Roblox plummets 14% on disappointing bookings, daily active users miss

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Roblox plummets 14% on disappointing bookings, daily active users miss

Cheng Xin | Getty Images

Roblox shares plunged 14% after the gaming platform fell short of Wall Street’s bookings and daily active user estimates.

Roblox reported bookings of $1.36 billion for the fourth quarter, versus the $1.37 billion expected by analysts polled by LSEG. Daily active users came in at 85.3 million, reflecting 19% growth from a year ago. However, the figure came up short of a StreetAccount estimate of 88.2 million.

The company said it anticipates bookings to range between $5.20 billion and $5.30 billion for 2025, compared to a $5.30 billion FactSet estimate.

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CEO David Baszucki said in an earnings release that the company would continue to invest in its virtual economy, app performance and “AI-powered discovery and safety, empowering creators and enhancing the user experience,” in the new year.

The results from Roblox come amid a rocky stretch for the industry. Video game developer Electronic Arts cut its forecast last month due to slowing sales in its soccer franchise, among other games. In its earnings release Tuesday, the company showed a 6% decline in net bookings from a year ago.

Roblox which relies mainly on content and games created by its users, soared in popularity in the depths of Covid-19, especially among younger generations.

Shares of the San Mateo-based company went public on the New York Stock Exchange in March 2021 and closed at $69.50, or a roughly $38 billion market cap. With Thursday’s moves, the stock sits nearly 53% off of its all-time closing high reached in November 2021.

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