Nice to see someone reinforce my OP and the other reason for the lack of ambitious FPS games is that the genre is conquered by 2 cash cow giants which is why we continue to see CoD/BF (that feed mostly casual customers) every year instead of a game like MAG 2 that would bring back thousands of ELITE fps players to a dead genre.
EA stocks has fallen by almost 50% since E3 debacle and aren't stopping
- Thread starter Chris Simon
- Start date
No, it's basically that. The stock market's dirty little secret is that most traders have no idea what they're doing and just go with the flow, so a company's stock price is largely determined by how good a job they do at driving hype.
But eventually earnings are released and when they fall below expectations the stock takes a dive. When they exceed the stock gets a bump. There is a lot of speculation but there's always some real numbers expected at some point.
I haven't looked into it, but isn't the market flat over the year? And aren't tech stocks down?
I just checked and EA is down 2.8% YTD and the NYSE index is down 3.19% YTD.
Nothing to see here.
When I was starting this debate, I've checked other gaming-related companies. You're right that year-to-year, the dip isn't that great, but there are companies like TakeTwo, Ubisoft, etc. who seem to be steadily rising or at least flat-lining, while EA and Activision in particular took a really noticeable dive that corelates with their PR blunders. That's what I was getting at.
Nah, it's significant given the context. There's a narrative reason for the decline, an event that started it, and a sizable stock price drop. When there's a story, always throw out technical analysis. TA only applies to the random chaos of non determinative markets, and it only does so approximately. In this case, it is predictable that the stock would likely fall regardless of what the TA says.
Dirty Secret? It was well know years ago that randomly picking stocks was about as good as using a stockbroker. I think Mr Dartboard scored highest on their test.
Yeah, shares as long time investment for big companies are rare thing these days. Most of trade is automated gaining/losing on huge amounts to gain difference of margins, and that's how most profit these days are getting made. Yes, there are long term investment funds, and those won't jump from EA, or any other big company because of E3 or something else really. And PR become a thing with these automated/short sellers. They tend to dictate how market behaves and yeah, it is nonsense.
Also in last few weeks market finally corrected itself after huge cashout as ride to green pastures ends around the world, and recession is around the corner. EA and Activision both still racking huge amounts of money via MT, so no, gamers have done very little to influence behaviours of these companies, quite the opposite. They have mostly confirmed that gamers will buy anything with big franchise name attached to it, will suffer MT in single player game at ease, and even will accept lootboxes if they have to.
Not at all, it's a pretty good simple explanation. One reason for EA to care about it's stock price is the threat of takeovers and returns from issuing equity to the public - but that doesn't happen often and are rather strategic than day to day considerations.
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Not rare things, especially pension funds are required to be very conservative and trade on a very strict guidelines. Also meme investor Warren Buffet is famed for keeping stuff long.
Doing a bit of stock trading myself it is very frustrating how irrational the market is - and how much it is overreacting the news. Recession could be around the corner, or perhaps not. US consumption is still powering ahead, and while China is experiencing a correction, it is pretty far from crashing. Gold price didn't move during recent shocks, which also indicates me that this isn't the real thing yet.
Rising interest rates do mean though, that sooner or later the Global economy will either crash or enter a longer stagflation (no growth, only rising prices) period.
Rising interest rates mean foremost that shares become less attractive while bonds are more so. And before you'd see crashes due to high interest rates there is always the possibility the interest rates will get lowered again.