EA is the latest takeover in Wall Street M&A boom. Goldman believes these stocks could be next

Goldman Sachs anticipates a sustained M&A boom, exemplified by the $55 billion Electronic Arts acquisition, projecting a 15% increase in U.S. deal volume by 2026. This outlook is supported by a 29% year-over-year rise in announced M&A deal value, an IPO Issuance Barometer at the 88th percentile, and expectations of accelerating U.S. economic growth and improved CEO confidence. The firm has identified a basket of 49 potential acquisition candidates, signaling robust future activity.

Analysis

Goldman Sachs projects a sustained mergers and acquisitions boom, bolstered by the recent $55 billion all-cash acquisition of Electronic Arts (EA). This forecast is underpinned by several key indicators: a 29% year-over-year increase in announced M&A deal value, an 8% rise in the number of transactions, and an IPO Issuance Barometer ranking in the 88th percentile since 2002. The firm's chief U.S. equity strategist, David Kostin, anticipates a 15% increase in completed U.S. M&A deals in 2026, driven by accelerating economic growth and improving CEO confidence, despite a sentiment indicator that remains negative at -0.6. The credibility of Goldman's M&A screening is enhanced by the fact that EA was on its list of 49 potential candidates prior to the deal announcement. Among other names on the list, Insmed (INSM) stands out due to strong fundamental catalysts, including a recent FDA drug approval that has caused its stock to more than double in 2025 and attract overwhelmingly positive analyst ratings. In contrast, Zoom (ZM) presents a more complex picture; while identified as a target, its CFO has signaled it may act as an acquirer, leveraging its nearly $8 billion cash balance. Zoom's stock has lagged the market with less than 4% growth this year, which could make it an attractive target, but its own M&A ambitions introduce strategic uncertainty.

Key Decisions for Investors

• Investors should consider an event-driven strategy focused on potential M&A candidates, particularly in the technology and biotech sectors, given Goldman Sachs' successful prediction of the Electronic Arts deal and its forecast for a 15% increase in M&A volume by 2026.
• Insmed (INSM) warrants attention as a potential acquisition target due to its recent FDA approval and significant stock momentum, but its valuation has already more than doubled in 2025, suggesting much of the optimism may already be priced in.
• For Zoom (ZM), investors must weigh the possibility of a takeover premium against the company's stated intent to be an acquirer, which could involve dilutive transactions or a shift in its business model.
• Despite the bullish M&A outlook, the persistence of a negative sentiment indicator (-0.6) suggests investors should maintain a degree of caution and avoid over-allocating to speculative takeover targets without fundamental support.