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EA falls on broker concerns about 'Star Wars'


cutXthroat

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I call BS. They are definately pulling in huge profit from this game. Not to mention SWTOR isn't the only game EA is making money on. lol

 

not to mention

 

Casual observation?

 

You base likely millions of dollars on just a "casual observation"?

 

Not with my money you wouldn't, you'd better research the hell out of it and give me some kind of flow chart or a nicely crayon colored graphs or something.

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The false economy becomes a lot more interesting and entertaining once you realize how fake it is.

 

I love watching the stock market and how much people freak out about waves and ripples of digital money disappearing into digital smoke.

 

Someone out of the matrix, nice to meet you.

 

On the global scale is where it gets really funny. The whoooole world is in a depression. Where'd all that money go? Liquid assets can't just disappear...all those trillions that aren't circulating in standardized economies anymore went somewhere, and it wasn't to China.

 

Such a joke. How people can just toss up their hands and say "Must be hard times" is not a joke though. That should be fixed.

Edited by Mhak
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They knew they were going to fail because they built them to fail.

They bundled trillions of dollars in bad loans as investment products then sold them to their own customers as good investments...

Yes, these were Goldmans Sachs OWN products that they knew were garbage and would eventually fail. They then took out insurance policies again them failing THEN shorted the stocks of the insurance companies. They knew that trillions of dollars in failed investments would bring down the insurance companies stocks, making them millions on the short.

 

I dont expect most people on these forums to understand just went down in our financial markets, but it was EVIL ugly and 20 years ago would have all been illegal. Big money buys laws that big money likes.

 

Nail on the head. QFT. Watch the film 'Inside Job'. Sickening. Truly sickening.

 

Anyway Im not sure if I agree with some random analyst, but my gut feeling is as people all round the world feel the financial pinch, the subsciption model will fail and f2p will take over. Wouldnt surprise me to see WoW go that way soon.

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You mean like Guild Wars?

 

 

You mean like WoW?

 

 

Wasn't LFG channels initially a player created channel in WoW?

 

And the global LFG channel is something that has been turned off and on like a cheap prostitute ever since because players can't seem to do anything but abuse it's function.

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http://finance.yahoo.com/q/ao?s=ea+analyst+opinion

 

-3.9 percent, back from -5. daily fluctuations are fun to watch.

They were more fun to watch back in August when the entire DOW was having -4% / +4% days. I don't listen to economist much lately.. the more you follow the news the more you realized how wrong they usually are (that or they talk about the obvious after it happens).

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Yeah, except his clients do. And his clients are investors that by injecting money, keep products flowing.

 

This only matters if EA is actively selling shares, and a quick check shows they are not so there is no income for EA here. All this guys clients are doing is buying outstanding shares from other investors. EA only gets money from shares the first time they sell them off, all other trading after the fact is simply investors trading the stock amongst themselves.

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http://www.gamespot.com/news/ea-stock-tanks-on-star-wars-the-old-republic-fears-6348864

 

 

EA stock tanks on Star Wars: The Old Republic fears

By Tom Magrino, GameSpot, Posted Jan 19, 2012 11:56 am PT

 

Brean Murray Carret & Co. lowers game publisher's price target due to "creeping concerns" of MMO

 

US markets are largely positive today, due in large part to positive earnings-season economic data and strengthening unemployment data, according to a consensus of financial reporters. However, such is not the case for Electronic Arts, which is trading down more than 6 percent after Brean Murray Carret & Co. analyst Todd Mitchell lowered the company's price target from $28 to $22.

 

 

Mitchell may be performing Jedi mind tricks on investors.

As reported by Market Watch, Mitchell's reassessment of EA came about due to what he termed "creeping concerns" over the future of EA's recently launched massively multiplayer online role-playing game Star Wars: The Old Republic.

 

"Specifically, initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions," Mitchell said in a note to investors.

 

Released to a strong critical reception on December 20, The Old Republic sold more than 1 million units during its first week of availability. That tally proved to be more than what EA could handle, as the game's launch was marred by long wait times to access many servers.

 

read the rest here

Edited by Gilbara
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Someone out of the matrix, nice to meet you.

 

On the global scale is where it gets really funny. The whoooole world is in a depression. Where'd all that money go? Liquid assets can't just disappear...all those trillions that aren't circulating in standardized economies anymore went somewhere, and it wasn't to China.

 

Such a joke. How people can just toss up their hands and say "Must be hard times" is not a joke though. That should be fixed.

 

I always love to point out WW2.

 

During WW2, when the US decided to get in on the fight in Europe, they didn't have enough gear. Not enough tanks, not enough planes, not enough jeeps. Really, they did not have the mobile armed forces that the US is known for today.

 

They didn't have enough money to buy it all either... but they had the work force and the materials.

 

So they just built it.

 

They just straight up ignored the money and went right to the resources and just used them.

 

If an entire government can just decide to bypass the monetary system at a whim, why do people still believe it's real?

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DID YOU KNOW

 

EA Stock, fun thing to look at.

 

December 19th, Price 19.845

 

December 21st, Price 20.82

 

Go go SWTOR?

 

The stock did nothing but go up in price after December 19th til the 21st, though it dropped back down after the 21st.

 

It went way up at December 27th, to 21.21

 

Jan 3rd the price was 21.425

 

On Jan 9th, the EA Stock dropped to 19somethingsomething after

 

http://www.advicetrade.com/nightlyreport/Sluggish-Trading-Before-and-After-the-Employment-Data-20120107730.html

 

was posted

 

On Jan 18th, this also resulted in a drop in the price.

 

Analysts at Goldman Sachs (NYSE: GS) decreased their earnings per share (EPS) estimates on shares of Electronic Arts (NASDAQ: ERTS) in a research report issued to clients and investors on Wednesday. They currently have a “neutral” rating and a $22.00 price target on the company’s shares.

 

Separately, analysts at Macquarie initiated coverage on shares of Electronic Arts in a research note to investors on Wednesday, December 21st. They set an “outperform” rating on the stock. Analysts at Brean Murray Carret & Co. reiterated a “buy” rating on shares of Electronic Arts in a research note to investors on Friday, December 2nd. Also, analysts at Brean Murray cut their price target on shares of Electronic Arts from $29.00 to $28.00 in a research note to investors on Friday, December 2nd.

 

to 17.75

 

Which it proceeded to rise on the 19th to 18.25 after EA Posted

 

Electronic Arts Inc. (NASDAQ: EA) will release its financial results for the third quarter fiscal year 2012 after the close of market on Wednesday, Feb. 1, 2012. In conjunction with this release, Electronic Arts will host a conference call to review its financial results for the third quarter, discuss its outlook for the future and may disclose other material developments affecting its business and/or financial performance. Listeners may access the conference call live via a dial-in number or audio webcast.

 

As well as the Mass Effect 3 Demo

 

And the market price fell back down to 16.95, and is slowly climbing back up it seems.

 

Doom and gloom? Hardly.

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"Specifically, initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions," Mitchell said in a note to investors.

and

Released to a strong critical reception on December 20, The Old Republic sold more than 1 million units during its first week of availability. That tally proved to be more than what EA could handle, as the game's launch was marred by long wait times to access many servers.

Am I crazy, or do these paragraphs directly contradict one another?

 

Maybe this Mitchell guy was expecting 5 million sold copies or something?

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I think the bigger affect on the stock price was the announcement that Mass Effect 3 would NOT be available on Steam, only Origin. After my experiences with Battlefield 3 and Origin, no way would I ever purchase anything through Origin ever again, and I haven't bought a hard copy of a PC game in like half a decade.
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If an entire government can just decide to bypass the monetary system at a whim, why do people still believe it's real?

 

Because it's the single most effective means of controlling entire populations, except for or maybe on par with religion. Thus, it's ingrained to be a mandatory part of life starting at the point we're capable of rational thought and deductive/inductive logic. The idea of "no money" on a global scale is so foreign to most people as to be incomprehensible.

Edited by Mhak
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No one says they are. But cherry picked anecdotes to prove a point is certainly no rebuttle. Even if you imagine that they are...

 

Cherry picked anecdotes?! Uh, this is just a list of horrible calls by analysts. I'm quite sure if anyone wanted to they could generate a gigantic list of analyst eff ups. 2008, the dot com bubble, housing and real estate collapse just to name a few recent ones. The list goes on and on.

 

The financial markets aren't based on what you are, they are based on what people "think" you are. Often, analysts don't "think" very well and make mistakes. Hell, ask any financial analyst and they should, if being truthful, tell you that most of what they do is pure, 100% guesswork disguised as fancy formulas and ratios.

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Because it's the single most effective means of controlling entire populations, except for or maybe on par with religion. Thus, it's ingrained to be a mandatory part of life starting at the point we're capable of rational thought and deductive/inductive logic. The idea of "no money" on a global scale is so foreign to most people as to be incomprehensible.

 

Well, thank the void of the universe that I ended up having a nihilistic crisis.

 

Now I find most concepts that humanity holds as absolute to be kind of funny.

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Am I crazy, or do these paragraphs directly contradict one another?

 

Um, no they dont.

 

If they pitched for 3mil sales and got 1mil then they can still underperform. and yet at the same time have not sorted servers correctly to ensure launch was smooth.

 

Not saying thats the case, just saying both can be true.

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They had the best selling MMO of all time and that's under their expectations? I smell gullabaloney

 

Yeah, maybe today's the day to buy, and watch it go up on the earnings call on 2/1. Wouldn't be the first time somebody deliberately drove a stock price down so they could buy low, now, would it?

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vgchartz has sales of about 2 million copies and I am not sure they include digital ones.

 

Sure, they could've aimed for more, but this is the whole stock broker problem. It's not about reality but just blown up expectations. Maybe EA promised more than they should've...doesn't mean the world is coming to an end. Stock always goes up and down. The world is close to another crisis as it is.

 

Are people just wanting the world to end or something?

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