Medal of Honor Reviews Blamed for 6% EA Stock Slip - briefly
(hx) 09:30 PM CEST - Oct,13 2010
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Shares of Electronic Arts Inc. (ERTS) closed nearly 6% lower Tuesday, a move that analysts pegged to disappointing critical reviews for its newly revamped combat franchise 'Medal of Honor.' Electronic Arts shares closed down $1.05, or 6%, to $16.61 but in recent late trading the shares are up to $16.70. The stock had risen more than 15% over the past six weeks, mostly on enthusiasm for the retail launch of 'Medal of Honor.'
Analysts pegged the blame for the sudden dip on less-than-stellar reviews of the company's high-profile shooter, Medal of Honor, which had broken preorder records for the series.
"[EA] shares [are] down because apparently some investors are disappointed by these early reviews," Wedbush Securities analyst Michael Pachter told the Reuters news service. Janco Partners analyst Mike Hickey seconded the notion, saying, "Medal of Honor reviews are not looking good. This can dampen future catalog sales as word of mouth dampens consumer enthusiasm."
That score is also "certainly bugging people," Colin Sebastian of Lazard Capital Markets told the Wall Street Journal. However, Sebastian also said the drop could have resulted from a spike in EA shares leading up to the release of Medal of Honor, which the publisher has been pushing as its own Call of Duty. This sentiment was echoed to the Journal by Eric Handler of MKM Partners.
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Updated:10:33 PM CET Jan,10
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