Brokers Concerned about EA Stock Due to SWTOR


SWTOR is a big earner for BioWare and Electronic Arts. The extreme popularity of the game pre-launch and at launch led to great success for EA- at least from the start. All around, the company was recognized and this included with rising stock prices.

However, with that fame comes great responsibility. EA has a lot to live up to with SWTOR. There are expectations not only from the gamers but also from those who have invested into the company, based on the proposed success from the game.

Any sign of failure on this part will effect more than just the gamers who are playing. Recent reports of bugs and performance issues could be responsible for some investors to question their stock in EA. Could they be jumping too soon?

Performance issues cause EA stocks to drop with concerns over SWTOR. This report on Market Watch explains:

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.
Source: Market Watch

Lisa Clark

Lisa has been an avid gamer since she was old enough to hold her first controller and a game writer for more than a decade. A child of the Nintendo generation, she believes they just don’t make games like they used to but sometimes, they make them even better! While consoles will always be her first love, Lisa spends most of her gaming time on the PC these days- on MMOs and first-person shooters in particular.