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Author:

Jester Debunker

Subject:

Off Topic

Date:

01/30/18 at 5:41 PM CST

 

 

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EA up to new all-time high

EA surging to $126 this evening on an unimpressive earnings report. It looks like they missed holiday season forecasts by a fraction, due to the Star Wars mess having an impact on sales, only selling about 7M. The fiscal year guidance was raised a fraction. It's such a small delta it can't be the reason for a 7% jump today and this evening. I guess it's relief that earnings weren't worse? Oh, they also confirmed the recent rumor that Anthem has been delayed from Fall to the March quarter. They spin it as saying it's not really a delay, that's just people trying to make a story out of it, although it was EA who previously announced Fall 2018. I'm not sure how this fraction of a raised guidance and key game delay warrants a jump to new highs, but this is the market we're in I suppose.

finance.yahoo.com/ne...9.html

Jester,

I find that interesting - and puzzling. I've found that with my stocks that fail to meet expectations, the punishment is usually outsized (ouch!). There are market 'darlings' that get the benefit of some fairly significant doubts (INTC might be considered that - altho one could argue that in addition to blowout earnings, the fact that 47% of revs came from datacenter, it's some figure-based proof that their vital needs to diverisfy away from pc-centric business is working - still, a 10% rise in a company of that size in one day? And, as an aside, that Microsoft is doing it's usually bumbling job - they can't produce decent products and software until they've failed at it 3 times - the patches for the security vulnerabilities seem to be no different so far - were the first patches named 'Vista', or something like that?)  

I'd think that in the general market, both that barriers to entry in sophisticated games are higher than ever, the games market is probably viewed as unlimited growth, and the huge inflation of vg makers - even in relation to the general market, would be my guess as to why EA seems to be getting a pass+ from the market. I don't own any vg currently, for lack of a finger on the pulse, But even though you've got yours on it, it must be a lot like trying to figure out what the market will go next - with valuations so inflated, beyond all expectation - that's a really hard task. 


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Author:

Jam ok

Subject:

Off Topic

Sentiment:

Neutral

Date:

01/30/18 at 6:23 PM CST

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