EA’s Stock Is Crashing, Down Over 40% Since July

Electronic Arts just can’t catch a break.

It’s been a rough year for Electronic Arts and it appears that the company’s investors are taking notice. In the last year that brought us the PR nightmare, consumer backlash, and subsequently underwhelming sales of Battlefront 2, the PR nightmare, consumer backlash, and subsequently underwhelming pre orders of Battlefield V, a criminal investigation in Belgium over refusal to comply with gambling laws, among other incidences, it looked like the backlash online was pretty much irrelevant as EA’s stock continued to climb.

All of this came to a head in July when EA announced that Battlefield V would be delayed, and EA’s stock began to tumble. From a peak of around $148, the stock now sits at $85.84 just five months later and continues to gradually fall. EA’s stock stood at $112 on November 14, 2017.

So what’s the deal? Oddly enough, EA isn’t facing much in the way of a financial shortfall. While the total revenue for the fiscal year 2019 is supposed to be lower, we’re talking $5.2 billion instead of $5.5 billion projected. The second quarter brought in $1.286 billion in revenue, $16 million above forecast, with a net income of $255 million, far above the prediction of $150 million.

It seems to stand that the downturn in market price has its hands in the negative sentiment surrounding EA that is finally turning into poor market performance. Their titles may still bring in millions of dollars, but EA burned Star Wars fans twice with Battlefront and the sequel subsequently underperformed. Similarly with Battlefield V, the company’s outward statement that players who didn’t like the art style of Battlefield 5 can “accept it, or don’t buy it” has simply led to players not buying it, despite EA’s recent backpedaling on the game’s cosmetic designs.

There is also the fact that more governments are beginning to take a closer look at microtransactions, a large source of income for Electronic Arts thanks to Fifa Ultimate Team.

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