Jump to content

Quarterly Producer Letter for Q2 2024 ×

EA falls on broker concerns about 'Star Wars'


cutXthroat

Recommended Posts

It's the Wall Street Journal. It says it right underneath the big Market Watch banner at the top left of the page.

 

There is no more respected financial publication than the Wall Street Journal.

 

I used to respect the WSJ, then I realised toilet paper was easier on the old balloon-knot

 

D

Link to comment
Share on other sites

  • Replies 376
  • Created
  • Last Reply

Top Posters In This Topic

Not surprising.

 

Expectations from everyone were way too high about this game. Slowly everything is coming back down to earth and coming back in line.

 

Isn't going to do anything revolutionary but isn't going to be a failure either. Over time it may become one of the top played mmorpgs pending on how things are handled. But it isn't going to be the success in the short term some were banking on outside of the initial sales.

Link to comment
Share on other sites

The funniest thing about the stock market is that it's an entire system made out of smoke and mirrors.

 

A rumor here, a bad product there, and suddenly massive shifts rumble through this sea of digital money.

 

Suddenly opinion, and not objective data, dictates the rise and fall of companies.

 

RIM has been on their backfoot for months not because the Blackberry is necessarily an inferior product, but because the mass appeal of something like Apple adds to it's value. It's value is inflated not by facts, not by demonstrably superior stats and power, but because of the name printed on their product.

 

EA's stock falls because some dude decides to post his opinion on something.

 

This is why I laugh at people who actually think money is important or some sort of end within itself.

 

Money is just ********, printed on paper.

 

Uh, doh?

 

Stock values are whimsical because they are an indication of market consensus on the FUTURE earnings potential of the company, not necessarily the current. That's why rumor and speculation creates volatile stock fluctuations. It's also why you see companies that have little to no net profit still go up in stock price, because people are paying for the growth potential in the company.

 

Also, your point on RIM (ticker: RIMM) isn't exactly on point. It doesn't matter which technology is technically superior. There's a whole lot more to a company's value than just products. Intangibles have value too.

Link to comment
Share on other sites

well...at least this thread isn't about any of the following:

 

I quit and here's why.

I'm a guy playing a girl toon...when can my girl toon kiss another girl toon?

This robe makes my jedi butt look big.

Why are all women so well endowed in the star wars universe?

Chairs: Why can't we sit in any except on our ship?

I played wow...here's what i think about [insert any subject here]

damage meters, addons, macros, and why this game will fail without them

 

so i approve of it even though i don't really care what a stock analyst thinks of anything, including stocks most of the time.

 

hahahaha :D

Link to comment
Share on other sites

This post is neither in agreement nor disagreement of the OPs chosen topic, but rather me sharing a general rule I believe could help make any forum a better place.

 

Whether it be political opinion, financial advice, or simply office gossip... I never take anyone else's word for it. I go straight to the source. In this case, going straight to the source is reading coporate filings over on the Securities and Exchange Commission's website.

 

Before perpetuating someone else's opinion as fact, I would do yourself - and everyone else a favor, and go do some reasearch of your own.

 

Link to their filings page on sec.gov

Link to comment
Share on other sites

This post is neither in agreement nor disagreement of the OPs chosen topic, but rather me sharing a general rule I believe could help make any forum a better place.

 

Whether it be political opinion, financial advice, or simply office gossip... I never take anyone else's word for it. I go straight to the source. In this case, going straight to the source is reading coporate filings over on the Securities and Exchange Commission's website.

 

Before perpetuating someone else's opinion as fact, I would do yourself - and everyone else a favor, and go do some reasearch of your own.

 

Link to their filings page on sec.gov

 

Wise words... btw what's the worst that could happen? SWTOR goes F2P? :)

Link to comment
Share on other sites

Wise words... btw what's the worst that could happen? SWTOR goes F2P? :)

 

I'm actually not sure they could afford to go F2P. That's usually a last ditch effort by MMO's with a low subscriber count and it relies heavily on two things:

 

1) That they have made their investment back by that point.

2) That people are dedicated enough to purchase in-game items regularly.

 

If ToR went F2P this soon, EA would most certainly not make their money back. It would be a huge loss.

Link to comment
Share on other sites

Well! The game has certainly underperformed as to my expectations - and taking a quick glance around the forums, it's not hard to see that there are many out there.

 

Unsubbed today - let's see if they can get their ish together enough before GW2, TERA, D3 and Archeage come out. This game is toast.

Link to comment
Share on other sites

SAN FRANCISCO (MarketWatch) -- Shares of Electronic Arts Inc. fell nearly 3% to $17.75 on Thursday morning after an analyst with Brean Murray Carret & Co. cut his price target on the stock to $22 from $28, citing concerns about the recently released online multi-player game "Star Wars: The Old Republic." In a note to clients, analyst Todd Mitchell wrote that "creeping concerns" about the performance of "Star Wars" -- which was released in late December -- is causing him to trim his earnings estimates for the 2013 fiscal year. "Specifically, initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions," Mitchell wrote.

 

Anyone have any thoughts on this?

 

Borrowed from http://www.marketwatch.com/story/ea-falls-on-broker-concerns-about-star-wars-2012-01-19?link=MW_home_latest_news

 

Hey this guy seems like an MMO expert...I wonder if he is willing to tell me what I should have for breakfast???

Link to comment
Share on other sites

I don't understand why we have to ask a STOCK BROKER his opinion of how the game will do.

 

Lets just let the cards fall as they will, whatever happens -- happens. If you like the game, play it, if you don't like the game don't. If you like the game but still wanna see some changes, be patient. If you are just biding your time till your subscription runs out, more power too ya! see ya in 6 months when the game is trendy and you jump back on the bandwagon.

Link to comment
Share on other sites

 

This!!!

 

It doesn't matter though. Those that hated TOR before will use this to 'prove' they were right. Those that are loving playing the game will play on regardless.

 

I'll make a prediction or three: 41% of the posts in this thread will be made by uneducated people. Xugos will create 5 more alt accounts to 'agree' with his own anti-TOR posts. It will rain tomorrow in Ireland :)

Link to comment
Share on other sites

While I am no means a market type person nor a stock owner I find it humorous that one video game can affect a stocks worth.

 

Wouldn't that be similar to Ford's worth dropping if there was a recall on mustangs for an engine issue? This has never happened to my knowledge, but like I said I am not a market person.

 

Toyota's did after that huge recall it had. If it's a small recall no, but a big one of course.

 

SWTOR cost EA hundreds of millions of dollars to make. Why on Earth would it's success or failure NOT influence the value of the company?

 

Same goes for a movie studio with a huge and expensive flop. Sometimes a big enough flop will kill the company entirely.

Link to comment
Share on other sites

The gaming industry as a whole took a 21% hit in December with declines in hardware sales responsible for well over half of it. Numbers are fluctuating all over the map and trends are becoming moving targets:

 

- Gaming PC hardware sales are way down but gaming PC peripheral sales are up.

- Retail PC game box sales are way down but PC game DD sales are way up.

- Console sales (except maybe the 360) are down but console game peripheral sales are up.

- Console game sales are leveling off, but the console game trade-in business is growing.

- Both handheld device sales and sales of their gaming apps are booming.

 

So where does SWTOR fit in? EA has their irons in a lot of fires with a portable gaming apps group and a console gaming group, in addition to their desktop gaming group. The result of their diversity is having stock prices that are very much market driven. Unless EA tanks altogether, basing TOR's future on EA's stock trend is alarmist at best.

Edited by GalacticKegger
Link to comment
Share on other sites

I know people will find this hard to believe but, the reasons EA's stock falls in the winter months and raises in Spring, Summer, and Fall..........its called thier money making sports games, Madden, NBA, NHL and FIFA Soccer. Check EA's stock next time they release Madden in August, proabably be the yearly high. Edited by themistocles
Link to comment
Share on other sites

Like anyone in the stock market has been able to accurately predict anything the past couple years? You might as well gamble at a casino.

Some of the Goldman Sachs pukes were literally selling investments they KNEW were garbage and would fail. They would then bet against the insurance companies that insured the losses (anyone remember AIG??).

 

I wouldn't trust one of these analyst pukes as far as I could throw them.

Link to comment
Share on other sites

Like anyone in the stock market has been able to accurately predict anything the past couple years? You might as well gamble at a casino.

Some of the Goldman Sachs pukes were literally selling investments they KNEW were garbage and would fail. They would then bet against the insurance companies that insured the losses (anyone remember AIG??).

 

I wouldn't trust one of these analyst pukes as far as I could throw them.

 

This article is by the Wall Street Journal, not a brokerage house.

Link to comment
Share on other sites

Hey this guy seems like an MMO expert...I wonder if he is willing to tell me what I should have for breakfast???

 

personally I like a mixed fruit smoothie with a green tea.

 

But if in doubt go with bacon, bacon is good for all occasions.

Link to comment
Share on other sites

So some stock analyst tried the game and isn't a fan, and he hears some unsubstantiated rumors about sales not meeting "expectations," whatever that means, and rates EA stock lower than he had before.

 

Stop the presses!

 

Actually if EA stock falls some more, I'll buy. EA isn't going anywhere, and neither is Bioware, and long term it's probably a decent investment.

Link to comment
Share on other sites

Like anyone in the stock market has been able to accurately predict anything the past couple years? You might as well gamble at a casino.

Some of the Goldman Sachs pukes were literally selling investments they KNEW were garbage and would fail. They would then bet against the insurance companies that insured the losses (anyone remember AIG??).

 

I wouldn't trust one of these analyst pukes as far as I could throw them.

 

Apparently Goldman Sachs can predict what will happen since they *knew* certain investments would fail.

 

Way to contradict yourself. Next time use less hate.

Link to comment
Share on other sites


×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.