EA stock history

Karteli

Well it's no secret that after the release of SWTOR, EA's stocks plummeted.  But by how much? Heres a nice graph of actual market facts:

ref:

http://tosche-station.net/?p=1604

 

 

"While Electronic Arts isn’t alone in the downward trend (Hello, Take Two Interactive), it’s not keeping up with one of its chief competitors in Activision-Blizzard. Worse, it’s not keeping pace with the NASDAQ composite index. But here’s the scary thing, see where the downward trend begins for EA? That’s right about when The Old Republic debuted, the most expensive undertaking in EA history. How much of TOR’s stumbles have fueled EA’s trouble isn’t fully known, but it certainly has contributed."

EA is way below market trends, this much is clear. As soon as SWTOR hit the market, stocks fell .. and they fell HARD.  Guess the investors had a chance to see how this game would "more than compete with WoW", eh?

Zorgo

Originally posted by Karteli

Well it's no secret that after the release of SWTOR, EA's stocks plummeted.  But by how much? Heres a nice graph of actual market facts:

ref:

http://tosche-station.net/?p=1604

 

 

"While Electronic Arts isn’t alone in the downward trend (Hello, Take Two Interactive), it’s not keeping up with one of its chief competitors in Activision-Blizzard. Worse, it’s not keeping pace with the NASDAQ composite index. But here’s the scary thing, see where the downward trend begins for EA? That’s right about when The Old Republic debuted, the most expensive undertaking in EA history. How much of TOR’s stumbles have fueled EA’s trouble isn’t fully known, but it certainly has contributed."

EA is way below market trends, this much is clear.

Isn't it also about the same time as ME3's release - that has had probably as big if not a larger impact on public perception of this company. And I think it is important to note: Is it TOR that failed, or the people at EA making decisions which caused it to fail?

Basically, I support your opinion: EA is filled with a bunch of greedy egomanical idiots who consistantly make poor decisions - i believe they decided to push the envelope to see how much we the audience would take, and they found the threshold.

The sad thing is that it was the developers and the games which suffer.

EA exec: Hey, my decisions led to a bad situation; you are laid off.

Dev: but you are the one who made the bad decision......

EA exec: Yeah, but its in my deal that I get a bonus; the game didn't make the money for my bonus, so we have to cut your salary so I get mine.

Dec: sweet deal you have there, I guess with a deal like that you don't have to make good decisions.

EA exec: Nope, I don't. And I'll get another project to work on - shouldn't you be out polishing your resume? Contract work is a bitch.

 

StoneRoses

Already a thread on this!

 

Karteli

Originally posted by StoneRoses

Already a thread on this!

 

Is there?

 

I haven't seen it.

StoneRoses

Originally posted by Karteli

Originally posted by StoneRoses

Already a thread on this!

 

Is there?

 

I haven't seen it.

EA STOCKS

 

 

 

 

mcburly

hopeless

Gruug

EA stocks are lower not because of one single game. They are lower because of the way in which EA manages their games in general. EA has a history of poor Q/A with many (not all) games being released based upon the calendar and not if the game is complete and playable. EA has also lost reputation and consumer confidence for the way it has handled launch day DLC for ceratain games and intimated the use of "subscription like" models for many of its past successes. EA needs to shake up it CEO and many that run the company to at least begin to regain some confidence from consumers. It also needs to stop concentrating on aquiring new companies and work to improve those it currently has.

waynejr2

Originally posted by Karteli

Originally posted by StoneRoses

Wow you really that niave?

 

Let me hold your hand again ok!

 

EA stocks has been on the decline since 2008 along with many others!

 

Only thing legit about this thread is your just trying to start crap about something that has already been talkled about on these boards again.

 

First Page! enjoy the read!

 

If you want to spread talks about EA stocks being on the decline since 2008, then I'd like a source .. a news article, or graph would do.  Because I don't remember any of the nonsense you are rambling about.  Source?

 

But I find humor in your attempt to shut down this thread because it shows bad light on EA.  Why would you talk with so much interest in this topic, as to harm consumers into buying EA products?

 

You provided no credible counter to the credibility of the article, yet you seem so adamant about ending discussion?  I wonder about you now...

Here

http://www.mmorpg.com/discussion2.cfm/post/5063020#5063020

 

StoneRoses

You obviously read nothing! The 1st link I tossed at you showed Orphes graph dating back since 2007 to 2012,

 

it's a no brainer! [mod edit]

Clawzon

Hoho, I remember reading a post on the original swtor forums about this issue..."is it worth buying ea stocks before this game is released consider it might challenge wow"

 

Some people trolled their own wallets haha

 

 

waynejr2

Originally posted by StoneRoses

You obviously read nothing! The 1st link I tossed at you showed Orphes graph dating back since 2007 to 2012,

 

it's a no brainer! Or do you need help with the side scroll?

You busted him and he can't stand it.

StoneRoses

Originally posted by Clawzon

Hoho, I remember reading a post on the original swtor forums about this issue..."is it worth buying ea stocks before this game is released consider it might challenge wow"

 

Some people trolled their own wallets haha

 

 

 

Gaming industray has always been a terrible place to invest your money in. But its not as bad as someone buying into Facebook, yeah, like there weren'tany obvious red signs not to.

waynejr2

Originally posted by Karteli

Originally posted by waynejr2

Originally posted by StoneRoses

You obviously read nothing! The 1st link I tossed at you showed Orphes graph dating back since 2007 to 2012,

 

it's a no brainer! Or do you need help with the side scroll?

You busted him and he can't stand it.

[mod edit]

I didn't mimick it.  Frankly, I hadn't read #55 which is what would be required to mimick. 

I took the infomation that anyone who bothered to spend a moment researching you could have found it with a google.  Why didn't you look at the stock history closer before you posted?  Or did you already know it?

Kothoses

Firstly its investor confidence that values stocks not consumer confidence (that only has a partial effect on them believe it or not) as stock prices simply reflect the current demand amongst share dealers to place their money their (in essence stock trading is by and large just corporate gambling after all).

 

Given that consoles are coming to the end of their cycle (atleast if you believe the various gamer news sourcers) and any game developer working on consoles is currently undergoing a large amount RnD money sinks as they get to grips with the new development kits the makers send out well the next 12 months are (much like when the previous two generations of consoles were about to replaced) not ones where profits will be forcast at a high level.

 

Now believe it or not a minority of ME 3 fans making very vocal complaints  (I am not commenting on their legitimacy as I have my own opinon of that game which is one where I enjoy the previous 120 hours of story enough to hope there is more "ending" to come) also do not directly impact on share prices.

 

All information from investor calls is that SWTOR is still the second most subscribed to MMO in the west (as far as can be reasonably verified from factual presentations rather than fans anecdotal evidence)

 

Now lets look at the majority of western game developers and publishers that have a large stake in the console market.... wow.. all of them are struggling in the current economic climate.

 

The Reason Acti-Blizz are some what insulated from this is the fact that A they make PC games (PC's shelf cycle is very different to a console one and not subject to the same peaks and troughs due to new releases) and because they have the stable income of wow and so far people have proven happy to buy even the Diablo 3's of this world.

 

I hate to break it to any of you, but the vocal minority who complain on forums generally mean diddly squat when it comes to if a hedge fund or investor will buy shares, what matters to them is they can Short them (where allowed) or if they can hold them for a profit.

 

Given that games companies are currently about to start sinking money into learning to make games for a new generation of consoles (A time when profits are generally lowest) the medium 1 year to 18 month outlook is not one where medium term investors would really be looking to place money (expect most console developer/publishers to be writing off significant spending next year.   This rules out the medium term investor who will look for something with a higher chance of bouncing upwards more rapidly.

 

Now as for Shorting stocks (in the few places this is allowed) given that we are about to enter the traditional time of year when devs start releasing new products (Dont forget a new catalogue of EA sports games will come soon, which pretty much guarantee big sales) shorting the stocks is also a dumb move.

 

Now for those unfamiliar with how stock trading works you might think those two points contradict each other, but they dont see there are generally 4 kinds of investors.

 

Penny stock investors who look to snap up massive amounts of low value stocks hoping for a short term jump in price (High risk high reward)

Short term investors or Shorters (though these are two very different practises the end goal is the same, make a profit in a short space of time usually this is done with medium sized investments at most.

Medium term 1-2 year investors, these are people who move a portfolio around to try and make their living out of it generally some funds will use this to try and pad out profits.

Long term investors, those who are company stock purchasers, pension funds etc.  These people look usually for long term safe investments (This was where a lot of Government bonds especially in first world countries were sold... see Soverign Debt Crisis for the problems that can occur here)  

 

Given the current financial market, many who would be willing to invest are tieing their money up in Gold (during the late 00's) and currently pumping it into Safe economies (Sterling, Yen) to try and evade the problems of the EURO model.

 

So... This more than a few complaints on forums and some backyard "Award" is why video game share prices (especially ones for a company that hasnt had a major release in the last 3 months) are on a dip.

 

Atleast, thats what I believe

 

But please continue.

Karteli

Originally posted by Kothoses

Firstly its investor confidence that values stocks not consumer confidence (that only has a partial effect on them believe it or not) as stock prices simply reflect the current demand amongst share dealers to place their money their (in essence stock trading is by and large just corporate gambling after all).

 

Given that consoles are coming to the end of their cycle (atleast if you believe the various gamer news sourcers) and any game developer working on consoles is currently undergoing a large amount RnD money sinks as they get to grips with the new development kits the makers send out well the next 12 months are (much like when the previous two generations of consoles were about to replaced) not ones where profits will be forcast at a high level.

 

Now believe it or not a minority of ME 3 fans making very vocal complaints  (I am not commenting on their legitimacy as I have my own opinon of that game which is one where I enjoy the previous 120 hours of story enough to hope there is more "ending" to come) also do not directly impact on share prices.

 

All information from investor calls is that SWTOR is still the second most subscribed to MMO in the west (as far as can be reasonably verified from factual presentations rather than fans anecdotal evidence)

 

Now lets look at the majority of western game developers and publishers that have a large stake in the console market.... wow.. all of them are struggling in the current economic climate.

 

The Reason Acti-Blizz are some what insulated from this is the fact that A they make PC games (PC's shelf cycle is very different to a console one and not subject to the same peaks and troughs due to new releases) and because they have the stable income of wow and so far people have proven happy to buy even the Diablo 3's of this world.

 

I hate to break it to any of you, but the vocal minority who complain on forums generally mean diddly squat when it comes to if a hedge fund or investor will buy shares, what matters to them is they can Short them (where allowed) or if they can hold them for a profit.

 

Given that games companies are currently about to start sinking money into learning to make games for a new generation of consoles (A time when profits are generally lowest) the medium 1 year to 18 month outlook is not one where medium term investors would really be looking to place money (expect most console developer/publishers to be writing off significant spending next year.   This rules out the medium term investor who will look for something with a higher chance of bouncing upwards more rapidly.

 

Now as for Shorting stocks (in the few places this is allowed) given that we are about to enter the traditional time of year when devs start releasing new products (Dont forget a new catalogue of EA sports games will come soon, which pretty much guarantee big sales) shorting the stocks is also a dumb move.

 

Now for those unfamiliar with how stock trading works you might think those two points contradict each other, but they dont see there are generally 4 kinds of investors.

 

Penny stock investors who look to snap up massive amounts of low value stocks hoping for a short term jump in price (High risk high reward)

Short term investors or Shorters (though these are two very different practises the end goal is the same, make a profit in a short space of time usually this is done with medium sized investments at most.

Medium term 1-2 year investors, these are people who move a portfolio around to try and make their living out of it generally some funds will use this to try and pad out profits.

Long term investors, those who are company stock purchasers, pension funds etc.  These people look usually for long term safe investments (This was where a lot of Government bonds especially in first world countries were sold... see Soverign Debt Crisis for the problems that can occur here)  

 

Given the current financial market, many who would be willing to invest are tieing their money up in Gold (during the late 00's) and currently pumping it into Safe economies (Sterling, Yen) to try and evade the problems of the EURO model.

 

So... This more than a few complaints on forums and some backyard "Award" is why video game share prices (especially ones for a company that hasnt had a major release in the last 3 months) are on a dip.

 

Atleast, thats what I believe

 

But please continue.

Very insightful, although I would say investor confidence is more deeply dependent on consumer confidence.  It is becoming increasingly more difficult to short EA or hold them for a profit because of the gradual decrease in value over the past (near) year, whereas investing in other markets will have a better probability of return (the gamble).

 

While Blizzard may still have fans willing to lick sidewalks for them, if the quality of games like Cataclysm and Diablo 3 keep coming out, their stocks will be in trouble as well, IMO.  You can only tell someone it's raining for so long, before they realize you are just peeing on their leg.

 

Thanks for the post!

 

 

Amana

This matter is already being discussed in another thread.