Electronic Arts has once again proven to not be a favorite with analysts, coming under fire yet again following its recent financial call. Seeking Alpha's David Gibbs has called the company a "serial over-promiser" and claimed that its recent promises are a deliberate attempt to try and do the opposite, a tactic that the analyst believes is very dangerous.
"Serial over-promiser Electronic Arts may have under-delivered for the last time when it reported earnings for the December quarter Monday after the bell," Gibbs explains. "Mnagement is merely trying to put themselves in a position to under-promise and over-deliver next time around. Be warned though. Trying to pick a bottom in stock selling off in a correcting market is a dangerous game and I wouldn’t recommend it. Stay away from ERTS unless you’re feeling lucky, real lucky."
EA's bad press seems to have risen the more it tries to appeal to lifelong gamers and those who desire fresh IP. It's kind of sad that the better Electronic Arts seems to serve gamers, the worse it does financially and the more analysts seem to criticize. I suppose that's business for you.
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