I'm already bathing in EA and ATVI ! The declines in both have been nuts. ATVI from $77 to $52, when things are going fine for them. EA from $150 (which was way too high) to $85. Yes, EA's guidance has come down and they have some company specific concerns, but most of that drop is on valuation coming down to multi-year lows, not earnings.

EA scares me. They make too many crappy games and have issues with their big games. I assume Battlefield 5 will have server issues for weeks, etc.

ATVI is more intriguing, but they might be fairly priced at a current PE of ~20. They have lost gamers and even with BO4 sales being good, Destiny is dying, Daiblo mobile is a joke, etc.  My son and his friends have already ditched BO4 and are playing AC:Origins now (limited sample of course!). Over 20 million are playing RDR2, I am not sure if BO4 will have legs.  Still intrigued though, just seeing that the decline might have been warranted?

Jon

I agree they were over-priced Jon. It still seems excessive how far they have fallen so fast though. EA down 46% in 4 months, ATVI down 40% in less than 2 months. Their outlook and earnings estimates have only dropped by a fraction of that, so most of it is the multiple assigned. I'm not going to argue they're super cheap here either, especially EA, I'm just saying sentiment can change. They went too high on sentiment, and may have come down too far on sentiment.