EA stock recovers from loss on the back of Apex Legends’ launch

    
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This is neither fine nor not fine.

After the release of the third-quarter results for Electronic Arts on Tuesday, the company experienced a nasty dip in its stock value, dropping 18% in a day. This was its worst-ever drop in over a decade, so it’s pretty significant. But now, on the back of the Apex Legends launch, the publisher has recovered from its precipitous drop and returned to its prior stock price. This is not entirely surprising when you consider that the game hit 10 million players and 1 million concurrent players within 72 hours of launch.

For those of you who have somehow missed the whirlwind of the Apex Legends release, it was launched as free-to-play battle royale without any preamble and quickly attracted players and praise. While there are doubtlessly other factors that have contributed to the stock recovery, the speed of renewal implies that investors are feeling better about the publisher in the wake of its successful launch, which should certainly help buoy any nascent Apex Legends fans. It’s important to note, however, that this is only a recovery of the publisher’s stock price following its Tuesday drop; the overall trajectory over the past year remains downward.

Source: VG24/7
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Castagere Shaikura

Another new shiny BR game. I will never understand the appeal. Maybe I’m getting old and want more from gaming than just killing other players over and over.

PurpleCopper
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PurpleCopper

This sound pretty premature. Apex Legends has been out only a week. And then EA has to worry about Anthem and Firestorm coming out.

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sophiskiai

Skill Up mentions some interesting things in his video review of the game, specifically that making a BR game was something Respawn wanted to do rather than something EA wanted them to do, and not giving it any advance marketing was a deliberate decision because Respawn figured that telling people a F2P BR game was being released by EA before they got a chance to jump in and play it for themselves would attract negative hype because of EA’s reputation.

So EA’s stock is recovering based on a product which was trying to avoid the toxic associations of EA’s brand!

Godnaz
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Godnaz

A stock recovers from loss on the back of Apex Legends’ launch

Recover? Aren’t they already inflated?

Andy McAdams
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Andy McAdams

Am I the only one who doesn’t think this is a good thing? To me, it shows the incredible non-stickiness of the game, which means that people a likely to locust on to the next, newest shiny. That drastic of an increase that fast either means that 1) people are locusting away from Fortnite and will continue on or 2) Are trying this out for something new but will ultimately go back to Fortnite because of time/money investment there.

I think the market is too positive about the change and I don’t think the EA stock is going to rebound for long.

xpsync
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xpsync

“likely to locust on to the next, newest shiny”

Welcome to the mmorpg genre only a few years ago and why not many greats like EQ, SWG, EQ2 are no longer made, they had stickiness.

But wow arrived, and i hate to bash wow as it was at the time a decent alternative to the more hard core mmo’s, wow was good at wow bottom line.

But all that did was create that me too, gotta get my slice o pie company mentality instead of innovating on the genre, just copy cat till the next fad comes along, and when there is nothing left ot copy companies start to reduce staff cough*activision*cough, stocks drop, they have been spoiled for far too long and no longer know how to survive and thrive.

As far as the rebound, who knows? Playing the stock market is no different than gambling, be prepared to lose and only gamble with loses you can live with.

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rafael12104

Well, that’s BR in a nutshell, because no matter what Apex is going to get old. New content in games like this are maps and gimmicks as opposed to an xpac etc.

But I think Apex is squaring away their own ground based on what they did bring to BR. After a while, it will stabilize and remain as one of the top games much like PUBG and Fortnite did.

SirUrza
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SirUrza

Apex has something other BRs don’t, characters. The meta in Apex will always be changing because new characters will push new team compositions which in a competitive space could lead to counter picking.

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rafael12104

Agree.

Xijit
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Xijit

Have you ever played a BR?

They are trash … In the sense that they are completely disposable experiences and comparable to Reality TV shows in terms of entertainment depth.

There is no “stickiness” to the entire genre.

But that is also their appeal: zero barrier to entry & nearly flatline learning curve.

Easy come; Easy go.

But on a (sarcastically) positive note: I find it amusing how the BR genre has been slowly reinventing the FPS wheel.

PUBG rebooted the genre as a single player/small team death match shooter, Fortnight added faction battles & mission objectives back into the mix, and now Apex has reintroduced respawns.

$10 says Blizzard’s next title will be a Star Craft BR title with character leveling and gear unlocks.

xpsync
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xpsync

“Have you ever played a BR?”

No.

Xijit
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Xijit

Shit: I just accidentally predicted something that should have been completely obvious.

NetEase dumping more money into Blizzard & Activision giving Destiny back to Bungie & no real effort by Activision to pump COD into the full BR genre … They are doing a StarCraft BR!

Activision walked away from Destiny because having 2 Sci-Fi shooters on the market would have had them internally competing with each other. And while Destiny is still a hot shit IP in the west, StarCraft crushes everything else over in Asia. On top of that, Destiny has been disappointing Activision’s sales expectations, combined with Star Craft is a 100% self owned IP with no royalties they need to pay out to the developers.

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Bruno Brito

I did. It’s really not my cup of tea.

It’s also something i never predicted would be such fucking popular:

A “skill-based” pvp game with extreme vertical progression based solely on luck.

It’s literally the worst of CS with the worst of MMOs.

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Sorenthaz

That’s how the Battle Royale genre is. Folks don’t have too much investment in them because of the nature of the games, and Fortnite’s attempts to keep changing/adding stuff is coming at the detriment of their older/competitive audience. With PUBG it had longstanding issues that folks regularly griped about, same with H1Z1. Black Ops 4 was praised quite a bit but didn’t really get as many folks on board, and apparently Activision messed it up somehow or turned folks off from it.

Xijit
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Xijit

The fans of Battlefield & COD like chasing achievements & unlocks & KDRs … Strip that away & they get bored.

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Dug From The Earth

Oh good

the moral of this story:

Bad corporate decisions can be wiped clean if your company releases yet another Battle Royal game!

Good news for the BR genre, but bad news for gaming as a whole

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Armsbend

It isn’t a lock on success. Hi-Rez played me-too and largely whiffed.

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Bruno Brito

Good. Hi-rez needs to learn to not use their fucking successes to finance bullshit. Either go with passion or don’t go at all.

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rafael12104

As we discussed, Apex Legends bailed EA out. Calculated or not, that is the big news.

There is still a lot riding on Anthem, but at least EA has a little breathing room. Anthem doesn’t have to knock it out of the park now. Even if it is not a huge success like Apex, Anthem could steady the ship even further.

My question is, has EA learned anything? Or, will they crap all over their recent success with the bullshit gaming as a service money grab. Hey, at least it is questionable now instead of definite.

One more note. Anthem will have stiff competition at launch from Metro Exodus. Yes, it is a single player game, but Bioware is banking on pulling many of their old ME fanbase back. And those fans are primarily single player gamers.

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Akagi

My take on this is they finally realized that if they don’t stop releasing shitty games, they won’t recover and continue to sink deeper. And a BR game was the easiest way out – the genre has one of the most simplistic premises in gaming history and they just have to polish it… and they did and apparently it pays off… (I still hate Battle Shityale games)

But one question arises … wasnt CoD BO4 a well polished game? Why it’s BR mode isn’t played anymore and the game is falling into obscurity already?

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rafael12104

Hmm. I haven’t seen much of CoD 4BR, but my guess is that Apex and Fortnite, for example, are polished and free. The best alternative for those that could not care less about CoD while still taking from the CoD crowd.

xpsync
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xpsync

It’s above my average but was much more happy when it was running 150’ish.

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Eliandal

Not sure if that ‘overall trajectory’ is accurate. Since recommendations seem to be moving from strong buy/buy to hold. In any case, good for them, and can’t wait for the fireworks this is sure to generate ;)!

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rafael12104

I think that the hold recommendation is based on nervousness around Anthem.

My guess is that Anthem will do better than expected at launch barring any major issues. And Apex will continue to flourish.

All things considered, IMO from my armchair, those recommending a hold are misjudging the situation.

xpsync
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xpsync

Yea i was really holding back but wanted to advice anyone interested to buy as much as you can afford when it was running at 70, it’s 105 already. But had i advised that it prolly would have plummeted even further. And i was doing the “wish i dumped it all at 150” at the same time so, you never know. It’s not like i have tons of shares, i buy when i can spare some coin, which isn’t often, i bought a few more shares at 72, and until now regretted it, i really could not spare it from my budget at the time.

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Armsbend

Hold in investor talk means sell. But they move with the nimbleness of an iceberg – frankly I wouldn’t put much stock in what analyst say – they are generally protect their, or their cronies, investments.

xpsync
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xpsync

I’m joking, well not really, best advice i can give is to do the complete opposite of whatever Jim Cramer recommends. Here we have a well known name in the market, been doing it his whole life and pretty much a guarantee that whatever he says the exact opposite happens. So no one knows.

It’s just when EA was 70’s i nearly posted here several times buy what you can now! but refrained and very reluctantly bought a few more at that time and totally regretted it when it dropped even further, but now glad i did. lol

It was just like ffs $72 was hard to resist, buy low sell high right. Specially when tech was going bull for so long, then when the bear hit, it’s so f’ing hard to tell yourself to, but that’s when you buy. Keep your average low as possible. It being that low felt like a fucking gift but…

It’s like hey look the market is crashing, my stocks are in the red, EA practically looks like she’s going to go belly up, so buy some more????? are you f’in nuts, lol. It’s not an easy decision to make.

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rafael12104

Heh. Cramer still has a show? Lol.

xpsync
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xpsync

Yep! haha so you know too awesome!

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Armsbend

He is the showcased talent on CNBC – their number one guy. He gets some stuff right and he is a smart person. But first I think he is an entertainer and perma-bull before anything else. He always has a positive outlook on America which people are drawn to.

xpsync
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xpsync

Yea he’s a hard guy to hate on. Personable demeanor for sure.

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rafael12104

I used to watch his show on CNN. Yeah, he is entertaining, with his sound effects and enthusiasm.

Yeah, he got somethings right, but he was often wrong. Like an analyst I suppose. Heh.

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Armsbend

He does a round table with the other hosts 30 minutes before and after opening bell on CNBC. So none of the sound effects or individual picks – he just talks about general stock stuff. I enjoy him more in that role. he still does his regular show with the migraine inducing camera angles and such though.

Before he was a tv guy he worked for Goldman’s and did really well as a hedge manager. He graduated top of his class at Harvard too. he is no dummy.

but like anyone else, he gets stuff wrong all the time. of course that’s what people focus on :)

xpsync
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xpsync

He’s a big name and taking his advice then lose, sure it’ll be focused on, but confirms my thoughts on it all “No one knows” even someone who should or you would think would, have a better insight.

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Bruno Brito

I think my favourite moment of Cramer was when he was chastised by Jon Stewart and he actually seemed pretty upset and filled with regret with all it happened ( the last crisis you guys had ).

Can’t really hate the guy. He’s pretty fun.

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IronSalamander8 .

People must be dumping money on the shop for that. I played a few matched but didn’t spend a dime as most of the skins are pretty boring, some of them are worse than the default costume of the character and since you can’t choose which gun you find, I find skins for weapons to be pointless.

These skins work in Paladins and Overwatch as while some are just recolors, some really change the look of the character and/or their weapons, and in Paladins you also often have new voice packs that can completely change the character’s personality. So far anyway, none of the cosmetics in Apex Legends grabs me and makes me want to drop any cash on it. In The Garden Warfare games you can get some really silly ones and instead of them being just a single one, you get to mix and match head pieces, face gear, face paint, weapons and others, like these great examples:
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you don’t have to spend the money of course, like Overwatch you get free chests every time you level up but you don’t get the legend currency to buy the 2 locked characters very quickly-so far I have 600 and it takes 12000 to unlock one of them. That would be the only reason I can really see spending money-to unlock the 2 characters more quickly, at least right now anyway.

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rafael12104

Lol! Nice pic. Where did you dig that up or did you make it?

I agree, the skins are “meh” at best. But it doesn’t seem to matter right now, and rightly so because the game is solid.

As you level you do get boxes, but the rng is crap. However, from what I’ve seen, streamers are either given boxes or buying boxes and opening up hundreds in front of their audiences.

And so, Johny and Sally gamer are doing the same thing at home and buying a crapload.

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IronSalamander8 .

I dug it up yeah. I knew there would be a lot of cool cosmetic pics on the web. I have issues with screenshots and Origins so don’t really have many of my characters to show off. The game even has legendary hats that animate when you vanquish another player and of course this crown that is just so good!

On Apex, the game play is really solid. I was surprised with good it plays and unlike Fornite you don’t have people erecting handmade skyscrapers. I just wish the BR game style was more interesting.

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IronSalamander8 .

I did find one on my Enjin account! Back when the max rank was lower, note the cheese wheels on my Vampire Flower’s hands! :D
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Xijit
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Xijit

No one has seen how much money it has been making & EA can hide that number for the next 3 months, but they haven’t been shy about how the game racked up 10 million downloads in a week.

… But launching F2P on Xbox, PS4, and PC is something neither PUBG or Fortnite pulled off, and rationalizing it as “3 million on PS4, 3 million on Xbox, and 4 million on PC” makes that number less astronomical.

At the same time, they said they have been maintaining something like 600k concurrent players & that is not scrub numbers.