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Electronic Arts: Stock Performance since Fiscal Q1 2019 Results

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Dec. 4 2020, Updated 10:53 a.m. ET

EA stock has fallen 22% since July 26

Electronic Arts (EA) reported its fiscal Q1 2019 results on July 26. Since then, the stock has fallen 22% to close at $113.84. It’s currently trading 14% above its 52-week low of $99.63 and 25% below its 52-week high of $151.26.

EA stock fell 12% in August after it announced that its Battlefield V game was delayed and would launch on November 20 instead of October 19. It’s possible that EA pushed back the release date to avoid competition with Activision Blizzard’s (ATVI) Call of Duty: Black Ops 4 and Take-Two Interactive’s (TTWO) Red Dead Redemption 2.

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Pre-orders for Battlefield V are not encouraging

Last month, Cowen analyst Doug Creutz said that pre-orders for Battlefield V are ~85% below Activision’s Call of Duty: Black Ops 4. He also said Battlefield V‘s pre-orders trailed the prior Call of Duty games by 20% in 2013 and 40% in 2016.

report from Motley Fool stated, “Expectations for Battlefield V were high because 2016’s Battlefield 1 was a big success, but the upcoming release in the franchise diverged from its predecessor’s darker, more historically focused style and angered many series fans.”

However, during EA’s fiscal first-quarter earnings call, the company confirmed that the first public alpha test for Battlefield V exceeded expectations, and the feedback was positive. Pushing back the release date might not seem like a bad idea in order to avoid competition from what could be the best-selling game in the next 12 months.

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