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EA falls on broker concerns about 'Star Wars'


cutXthroat

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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

 

Well I think world economy as it is now looks grim...is not like just EA with this issue. I only care about my job/company I dont care whats gonna happen with EA or any game publisher/developer

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Seen this already. Never trust the opinion of a Stockbroker.

 

The company I work for posted a 3% increase in sales over christmas, which caused share prices to fall because the shareholders wanted 6%.

 

Despite this, the company is still set to post a profit of £4 billion this year, our highest yet. This should send share prices rocketing again. So I suggest waiting for EA's yearly profit announcement before assuming gloom and doom.

 

Just happened to Google who posted a 25% gain over last year, but investors expected more.

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actually that site puts it as a slightly (verrrryy slightly) positive option, but not moving. Certainally not a "strong to buy" at all.

 

Still with a -4% value though.

 

I checked as well: why didn't you mention that the rest of the market performed similarly yesterday?

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Heh, this thread still has legs?

 

This subject is extremely overblown. Most tech and consumer stocks do this sort of thing all the time when an analyst fharts out a change. These are called trigger events. Large investors have different methods of making their buy/sell decisions. So if you look at stock volume yesterday for the stock, you can see that they had a flurry of trades as large investors adjusted their positions on the stock.

 

Today the stock is up around 2-3% and still climbing, which is well ahead of the DOW and NASDAQ, and very typical after an analyst trigger actually.

 

Also, looking at it's 5 day and 3 month trend, nothing really to see here that is out of the ordinary.

 

http://finance.yahoo.com/echarts?s=EA+Interactive#symbol=ea;range=5d;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

 

Large swings and shifts in stock confidence is rarely driven by analysts statements. It is however driven by what is reported by the actual company in their quarterly and annual reports to shareholders. EA stock prices has actually been stable (centering around an $20 +/- 5) share price since the recession began back in 2009.

 

The Analyst in this case did however make for excellent troll bait.

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Heh, this thread still has legs?

 

Today the stock is up around 2-3% and still climbing, which is well ahead of the DOW and NASDAQ, and very typical after an analyst trigger actually.

 

The Analyst in this case did however make for excellent troll bait.

 

Are you sure about of this? yesterday lost close to 5 points, today started at close to +3 (obviously because BW announced changes in few months) but if you check now, there are on 1,8% and still dropping, because changes are not good and players are disappointed by the way. So i think today will be closed with another -2 -3% and its a total of about 8% in 2 days... In financial world... this is a hard fail. And sounds more fail when the problem is easy to solve, only needs to restore the valor gained because of abuse of an exploit. I played too much MMO's, I know all of them starts with problems, I accept the bugs this game have before 1.1, but EXPLOIT after 1.1 is unacceptable. I needed 1 month for rank 52 and people reached rank 80 in 5 hours.

 

In most cases it affected republic players directly, but right now there are too many crys oriented on the PvP queues on the Empire side. 1+1=2, lvl 50 bracket + republic players quitting = 30 mins for a WZ and always Huttball because can be played by same faction.

 

Obviously,I play republic side and canceled my account, still waiting REAL changes.

 

And prepare for sunday 22, when subscription period starts... I sense a disturbance in the force telling me that the numbers will be not the expected...

 

PD: Sorry for my bad english, Im spanish, from Barcelona and in my OP country is better to learn Spanish and Catalonian dialect than English. Sorry again T_T

Edited by Berme
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Geez, what's going on.. First they disable posting, now they're deleting or closing posts left right and centre.

 

Must be trying to balance the ship...

 

They're doing forum moderation stuff... just try and ignore the guy behind the curtain.

Edited by Gleneagle
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Oh NO!!!!!!!!

 

 

And they are up 2.34% as of right now. One day does not a trend make and publish an article based on one day fluctuation is reckless at best and idiotic at worst.

 

Blizzard is down 1.62% today so WOW must be crashing!!!!! Everyone run!!!!!!

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Have to say Chicago/Illinois has SF beat by a mile....

 

i'd be careful, you probably got an infraction for that just like i just did for the statement you originally quoted. Wish we as a community could give infractions to the moderation sometimes. I could careless about them though, not going to stop me from voicing my opinion political or not. What they gonna ban me from the forums? oh noes! The forums is just to keep me busy while at work, at home i'm too busy playing ;)

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i suggest we all prepare for EA to downsize this project. I am really suprised no one in beta caught the ability delay. I am suprised that beta didnt hammer out Ilum PvP. Suprised the legacy system didn't launch with live. Sad to think that EA pushed this released and will punish Bioware fior their mistake. Lucas should have wrangled this in a bit more considering the same thing happened to kotor 2.

 

so many rookie mistakes. I see the game getting better and better in terms of the small bugs, but then i remember all the huge bugs/poor-coding that are still in the game.

 

and the way in which customer support just forwards more work to the overwork developers is just wrong. give them a decent toolkit... oh wait... thats the dev's job too!

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Wall Street Journel reports, as of Friday 01-20-12, EA gaining back 2% of it's 3% loss

 

EA stock had a 3% loss on Thu due to one brokerage reporting stating that "initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions.”

 

EA stock gained 2% on Fri due to three brokerages reporting that they dispute the other brokerages report stating that "We believe that these concerns are overblown, and that the company’s revenues are tracking ahead of the high end of guidance for the fiscal year.”

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Wall Street Journel reports, as of Friday 01-20-12, EA gaining back 2% of it's 3% loss

 

EA stock had a 3% loss on Thu due to one brokerage reporting stating that "initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions.”

 

EA stock gained 2% on Fri due to three brokerages reporting that they dispute the other brokerages report stating that "We believe that these concerns are overblown, and that the company’s revenues are tracking ahead of the high end of guidance for the fiscal year.”

 

I wonder if someone will make a thread about this topic so that we can all hop in there and be positive. Probably not. Most of the trolls who were laughing at this the other day will likely come back in and say STOCK PRICES MEAN NOTHING. We told you they did.

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"Analysts disagree on how successful TOR will be. Some think the game will do great and some are lowering estimates due to NPD data. Being an investor myself I tend to look at option data to see what the 'smart money' thinks and for whatever reason put buying is way up which means investors think EA is going to tank. Only time will tell.

 

Either way this thread adds nothing to the discussion around TOR and its gameplay."

Quoted from my old post

Just to carry over my post.

 

I saw lots of people post information they knew little about.

 

This game is showing signs of a flop a 1% loss is still a loss.

 

I love how people on the forums try to act like they know what they are talking about.

 

When investors are buy more puts then calls / stock on a company you know its only going to get worse.

 

This game still shows tell tale signs of a flop.

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i don't understand all this stock market lingo

 

puts...

 

calls..

 

 

i always thought the stock market was a rigged scam anyway. just a way for the elite to gobble up any company that's successful. it's a total scam, so I don't really believe much of what they write.

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i suggest we all prepare for EA to downsize this project. I am really suprised no one in beta caught the ability delay. I am suprised that beta didnt hammer out Ilum PvP. Suprised the legacy system didn't launch with live. Sad to think that EA pushed this released and will punish Bioware fior their mistake. Lucas should have wrangled this in a bit more considering the same thing happened to kotor 2.

 

so many rookie mistakes. I see the game getting better and better in terms of the small bugs, but then i remember all the huge bugs/poor-coding that are still in the game.

 

and the way in which customer support just forwards more work to the overwork developers is just wrong. give them a decent toolkit... oh wait... thats the dev's job too!

 

They did the ability delay has been reported since Alpha, Bioware doesn't care though since it's a bug with HeroEngine which SWToR is build on. They'd have to rewrite the entire game in order to fix it.

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