EA stock drops, CEO John Riccitiello thinks investors are confused about gaming
61 replies, posted
[QUOTE=Combine 177;36837966]It would be really damn good idea to grab some EA stocks right now.
After BF4 comes BANG, stocks are up again.[/QUOTE]
Is it ppossible for individuals to buy stock or do you have to buy it through an agent?
You purchase it through a stockbroker/brokerage firm. I've got an account, perhaps it's time to strike :dance:
[QUOTE=demoguy08;36838232]You purchase it through a stockbroker/brokerage firm. I've got an account, perhaps it's time to strike :dance:[/QUOTE]
Any ones you could recommend?
Investors aren't confused. They're waking up.
It's because all of the little gamers are complaining to their daddies about how much they dislike EA.
[QUOTE=LoLWaT?;36835567]Oh just die already...[/QUOTE]
obviously gaming is not an industry right
[QUOTE=Richy19;36838241]Any ones you could recommend?[/QUOTE]
Not sure, I use Avanza Bank but that's a swedish broker. Rule of thumb is choose a broker with low commission (a percentage fee on every transaction).
confused? don't kill me EA I'm sure as hell not going to support you in any way.
With the stock price being low, I'm not sure if it would be a good time to buy into the company, or if it's going to crash completely.
[QUOTE=Karmah;36838616]With the stock price being low, I'm not sure if it would be a good time to buy into the company, or if it's going to crash completely.[/QUOTE]
[B]Fun with the stock market![/B]
[QUOTE=RichyZ;36836198]aka valve is a special case in pretty much everything because they got incredibly lucky with half life and tf2[/QUOTE]
I'm not certain it's entirely luck when Valve hit the ball out of the park with Half-Life, Half-Life 2, Half-Life 2 Episode 2, Portal, Portal 2, Team Fortress 2, and Counter-Strike. (DOTA 2 and Global Offensive remains to be seen.)
Not all of their games are great, like Ricochet, Episode 1, And the entire L4D Franchise (in my opinion, anyway,) but I think that Valve has proven that they know how to put out a good game, and it's not only luck. Not to mention their wild success with the Steam platform.
[QUOTE=Jackald;36838661]I doubt EA is going to crash. Worst case scenario they end up doing some restructuring and fire a bunch of their smaller teams so they have more resources to focus on their larger titles.
Y'know, focus on Battlefield, Mass Effect, FIFA and Madden, and lay off some of the other teams that aren't producing games that sell as well as those franchises. It's basically what they did with Westwood, Maxis and Pandemic.[/QUOTE]
not to mention they already own the rights to a ton of valuable intellectual property. That in itself might justify the stock price.
[QUOTE=demoguy08;36838402]Not sure, I use Avanza Bank but that's a swedish broker. Rule of thumb is choose a broker with low commission (a percentage fee on every transaction).[/QUOTE]
I have found this broker, [url]http://www.sogotrade.com/s1/Default.aspx[/url] which charges $3 per transaction, dont know if this is cheap or not.
Also does it matter that I use a USA/other country broker to the country that I live in?
[QUOTE=Richy19;36838706]I have found this broker, [url]http://www.sogotrade.com/s1/Default.aspx[/url] which charges $3 per transaction, dont know if this is cheap or not.
Also does it matter that I use a USA/other country broker to the country that I live in?[/QUOTE]
You probably want to choose a broker based in your country, for a couple of reasons - you'll get better bang for your buck and won't have to deal with excange losses, when sending in your account contract you won't have to wait 3 weeks for the postal service to handle the paperwork, and so on. And when you need to call them for whatever reson you'll get to talk with someone who knows your language. And so on.
$3 per transaction can be cheap, but it depends on the ammount of stocks you're buying. Make sure to read the fine print - [I]all of it[/I] - so you don't get any surprises.
[QUOTE=Richy19;36838706]I have found this broker, [url]http://www.sogotrade.com/s1/Default.aspx[/url] which charges $3 per transaction, dont know if this is cheap or not.
Also does it matter that I use a USA/other country broker to the country that I live in?[/QUOTE]
I don't think investing is right for you if you really have to ask these questions on a video game forum.
If you are taking this seriously, then you should go to the library and read up. If not, then there are a lot of fantasy stock market games, if you have the patience(if you don't then the stock market is definitely not for you). Otherwise, this is just gambling. Good investors do a lot of research and have solid reasons behind their decisions, and even then it can be a risky line of work. For a layman it's probably significantly worse.
edit: just realized how pessimistic this was.
don't let me dissuade you, just make sure you know what you're getting into.
i guess in a sense you've got an edge up on most investors, in that you should know the industry fairly well. I think Peter Lynch heavily emphasizes the advantages of investing in what you know, the idea being that you're more likely to pick up undervalued stock when you play to your strengths.
[img]https://dl.dropbox.com/u/32793717/cash.png[/img]
Now I just gotta wait for their next game to come out and it to rise. (Only 8 because I am 'short' on money, moreso the risk factor and all. I never invest more than 100 worth. :v:)
You [i]know[/i] their stock is going to go up when they release a new game. It's just a matter of time.
I also agree with what the man above me said. Make sure you know what you are getting into and don't make 'rash' decisions.
[sp]Also, I've had EA stock for a little while, I didn't just buy it in case some of you were 'worried'.[/sp]
[QUOTE=iFail;36839036]I don't think investing is right for you if you really have to ask these questions on a video game forum.
If you are taking this seriously, then you should go to the library and read up. If not, then there are a lot of fantasy stock market games, if you have the patience(if you don't then the stock market is definitely not for you). Otherwise, this is just gambling. Good investors do a lot of research and have solid reasons behind their decisions, and even then it can be a risky line of work. For a layman it's probably significantly worse.
edit: just realized how pessimistic this was.
don't let me dissuade you, just make sure you know what you're getting into.
i guess in a sense you've got an edge up on most investors, in that you should know the industry fairly well. I think Peter Lynch heavily emphasizes the advantages of investing in what you know, the idea being that you're more likely to pick up undervalued stock when you play to your strengths.[/QUOTE]
I have a good (if somewhat amateur/basic) grasp of the numbers and what they mean, I just dont have a clue of the process of the transactions of stock.
That said this could be of some use: [url]http://www.khanacademy.org/finance-economics/valuation-and-investing?k[/url]
Basically, EA's saying it's their investors fault, and not the fact they've been making horrid games since... 08?
[QUOTE=ColossalSoft;36838309]Investors aren't confused. They're waking up.[/QUOTE]
And [I]boy[/I] are they smelling the ashes
[IMG]https://www.elpishost.com/public/Screenshot-2012-07-19_11.26.03.png[/IMG]
[IMG]https://www.elpishost.com/public/Screenshot-2012-07-19_11.25.40.png[/IMG]
That's more then a slight drop.
That "big" drop also coincides with the market crash of 2008. So it isn't EAs fault their stock suddenly plummeted back then, everybody had the same problems as people just stopped buying. But they aren't exactly getting back on their feet quickly either.
I think the CEO might be right for once. Investors don't understand the industry, much like CEOs, they only look for the profit of the company, not the public reaction and policies of the company. They push a company to make rash decisions to gain as much money as possible, EA can only be held accountable for so much of this shit, a lot of it is because they are publicly traded, and their investors want to see more progress now. Otherwise they will start selling their shares, which is not great for any company to be honest.
[QUOTE=hexpunK;36841999]That "big" drop also coincides with the market crash of 2008. So it isn't EAs fault their stock suddenly plummeted back then, everybody had the same problems as people just stopped buying. But they aren't exactly getting back on their feet quickly either.
I think the CEO might be right for once. Investors don't understand the industry, much like CEOs, they only look for the profit of the company, not the public reaction and policies of the company. They push a company to make rash decisions to gain as much money as possible, EA can only be held accountable for so much of this shit, a lot of it is because they are publicly traded, and their investors want to see more progress now. Otherwise they will start selling their shares, which is not great for any company to be honest.[/QUOTE]
Yeah, I know. I was actually referring to the second image - goes from 20 to 8 in the end.
[QUOTE=darksoul69;36842908]Yeah, I know. I was actually referring to the second image - goes from 20 to 8 in the end.[/QUOTE]
Ahh right. That wasn't there earlier :v: It is quite a big drop to be honest. But it's quite a steady descent, so I wonder what exactly caused it. They haven't released anything massively advertised in a while.
I would have thought game dev companies have drops during spring as they dont produce much then, and have rises at christmass as they release it all then.
[QUOTE=just-a-boy;36836633]That's kind of the point. Having been in the shoes of a developer himself at some point, he knows the conditions when a developer is at his/her best. This perspective translates into the Valve ethos, allowing them to land the proper decisions.[/QUOTE]
To be honest, I think it's more of a case that valve has essentially an assured revenue stream that lies outside of primary development, that they aren't constrained by the same limitations as most other developers.
On top of that, because valve essentially lacks these constraints, they can cherry pick industry veterans and talents much easier than mosto ther companies, because they can give them bigger security.
Had steam not been such a huge success, valve would be in a very very different position as it is.
[QUOTE=Liber;36853424]ea is confused about gaming[/QUOTE]
"Who cares about the game, we'll just copy and paste. Now it's time to work on all the DLC!"
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