[ad_1]
Actions of Electronic Arts Inc.
EA, -2.01%
fell by 1.6% in pre-market trading on Friday after Eric Handler, an analyst at MKM Partners, downgraded his equity rating to neutralize it. "The initial success of" Apex Legends "at 4QFY19 probably created a false pretense: the first upward forecasts for the FY20 Street year forecast were perhaps too much, too early then the commitment of players has dropped significantly over the past 10 weeks, "he writes. Handler said "Star War Jedi: Fallen Order" could sell well when it launches later this year, but has monetization problems. "Our biggest problem with the game is that as a story-based game, it will not have a multiplayer component or microtransactions, eliminating recurring revenue expenses," he wrote. . Although he downgraded the title, Handler increased its estimate of fair value, which went from $ 92 in the note to $ 100 customers. Shares of EA have gained 20% since the beginning of the year, as the S & P 500
SPX, + 0.96%
increased by 16%.
Have the latest news sent to your inbox. Subscribe to free e-mails from the MarketWatch newsletter. Register here.
[ad_2]
Source link