For Electronic Arts (NASDAQ:EA), it seems that its shares have been part of a battle royale. And yes, the company hasn’t been winning. Note that EA stock has plunged from $146.50 to $127.

Now there are several key reasons for this. First of all, it looks like EA stock got ahead of itself, as investors were expecting way too much for the fiscal first quarter results.

It’s true that that the company was able to beat, on both the top and bottom lines. Yet the outlook was another story. For the current quarter, the company put out a forecast for earnings of 48 cents a share and net bookings of $1.16 billion. The Street, on the other hand, was looking for 58 cents per share and $1.23 billion in net bookings.

But there was something else that likely put even more pressure on EA stock — that is, the sudden bearishness of tech stocks.

Of course, the catalyst was Facebook (NASDAQ:FB), which got decimated last week because of an awful earnings report. The result has been selling across the sector, such as with Netflix (NASDAQ:NFLX), Twitter (NYSE:TWTR) and Tesla (NASDAQ:TSLA). Right now, Wall Street has little tolerance for companies that cannot keep up the growth momentum.

OK then again, for investors with a long-term bent, might there be an opportunity here with EA stock? Perhaps the sentiment is, well, too negative?

Perhaps so. When taking a deeper look at the earnings report and the conference call, it does appear that the company is continuing to execute nicely.  For example, the pipeline of games is solid. In the coming months, EA plans to launch games like Battlefield V and Anthem. There will also be an assortment of sports titles like FIFA 19, Madden NFL, NHL 19 and NBA Live 19.

All in all, it looks like these titles should get traction. At the recent E3 show, EA received over 60 awards, which included “Best of” awards for Anthem, Battlefield 5 and FIFA 19.

But another catalyst that should help EA stock is the company’s investments in international markets, such as China.  In the latest quarter, EA launched FIFA Mobile in the country. And so far, it has become No. 1 for downloads for iOS from Apple (NASDAQ:AAPL). There was also a high-profile launch on the WeChat messaging platform (which is the largest in China).

Next, EA continues to evolve its business model, moving toward digital distribution. In the quarter, the digital net bookings rose by 13%, representing 69% of the total bookings. By the end of fiscal 2019, EA projects that this will go to 75%. The result should be better analytics, helping to build engagement, but also more attractive margins, as the middleman is cut out.

But EA is also jumping into subscriptions. This strategy has certainly been a winner for other companies like Netflix and cloud operators, such as Adobe (NASDAQ:ADBE) and Microsoft (NASDAQ:MSFT).

To this end, EA has rolled out Origin Access Premier. For $14.99/month or $99.99/year, subscribers get full access to the latest releases and a library of 100+ games.

Bottom Line on EA Stock

Investing in gaming companies can be a risky proposition. After all, it can be tough to keep cranking out the hits. This has been the bane of operators like Zynga (NASDAQ:ZNGA).

But EA is unique. The company has a diverse platform that spans PCs, mobile and consoles. There is also a strong library of content and licenses.

More importantly, there are nice growth trends that should benefit EA stock. Some include new technologies like AR (augmented reality) and VR (virtual reality). Oh, and yes, there is the fast-growing market for eSports. In that category, EA has been able to leverage its assets to become a big player.  Note that the FIFA eSports league has 20 million participants.

So while the selloff in EA stock has been a bit scary, the fact is that the company is still in fine shape.  In other words, the shares are certainly worth a look right now.

Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.