your faith has come down to money & a tv

Friday, May 05, 2006

Watchin' EA Fall

So I spent a goodly amount of time today at work (Don't tell my boss!) watching the great fall of Electronic Arts (ERTS). This was a stock that I was somewhat interested in at the start of the day (since I am a red-blooded American male who plays video-games), and I kept watching it fall and wondered all the while if I should buy some at this lower price.

I read a couple of places that some companies thought the stock was overvalued as it was, but still, in case you didn't get to see it, EA fell about 11%, around $6 a share at close. While I was watching it, it was even lower, down over $7 a share. In real terms, EA stock is normally around $54-55, and it dropped to at one point $47.50. That's when I started getting antsy about buying.

However, I never did pull the trigger and I think it comes down to my lack of trust in EA and its direction. I personally only play one EA game, Battlefield 2. How can I justify buying stock in a company whose games I won't play? EA's games never struck me as that good either. I was actually surprised to see that they have as much of a market share as they do.

Anyways, I guess we'll just watch and see if I regret this some months down the road.


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