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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
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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:
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Jam
ok
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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01/30/18 at 6:23 PM CST
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