The “Fortnite killer” and “PUBG burier” looks to be doing the complete opposite and has reportedly inflicted some damage on Electronic Arts. That’s right, season 2 has started and looks to be short when it comes to meeting investor expectations according to new reports.
Apex Legends no longer looks to be the apex predator on the battle royale field. Contrary to the past that saw the game topping charts, the game is reportedly struggling to meet its pique or so-called “climatic debut.”
According to finance.yahoo.com, the website notes a grim present for EA after the company and Respawn launched season 2. The summary on the stock trade roundup lists two negatives, which reads:
“Shares of Electronic Arts (NASDAQ:EA) made a really negative development this week.
On the plus side, the stock held up at long-term range support near $90. On the downside though, range resistance at $105 is still in place, while EA also fell through its 10-week, 50-week and 200-week moving average during the week.”
Behold, another report comes in by the controversial cnbc.com claiming that shares of EA have fallen more than 5% on July 5th, 2019, after initial viewership numbers for a new release failed to reach former highs.
The second season for Apex Legends went live on July 4th, 2019, and the publication reports it did not capture the audience on Twitch that the game had seen earlier this year:
“Shares of Electronic Arts fell more than 5% Friday morning after initial viewership numbers for a new release failed to reach previous highs.
The video game company released season 2 of the popular game Apex Legends on Tuesday, but the new season didn’t capture the audience on Twitch that the game had seen earlier this year. The game had roughly 45,000 viewers on Wednesday, according to Twitch Tracker. Apex Legends had more than 100,000 viewers in a day as recently as March.”
Another report and the final one for reference claims that EA was the worst-performing stock on the S&P 500 on July 5th, 2019. The website in question is markets.businessinsider.com, and it reports:
“EA shares fell by as much as 5.6% on Friday, the most in five months, after the update failed to ease concerns over “Apex Legends'” potential to compete with Fortnite, a Battle Royale game from Epic Games with close to 250 million users worldwide. EA was the worst-performing stock on the S&P 500 on Friday.”
Despite all the bad news, the website says EA is up as much as 16.5% so far this year.
Lastly, although stock fluctuation is a thing, we’ll have to see if Apex Legends continues to trickle down going forward or if it will help the company’s stock when July 30th, 2019, rolls around which marks EA Q1 2020 Earnings Conference Call.
