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Snealiv
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LONG BLOG

Why THQ's Stock Bump Isn't Cause for Celebration

   0
On Thursday THQ released their own Humble Bundle, a collection of AAA games sold together in a pack at a pay-what-you-want price. Later that day the THQ stock received a 40 percent boost to 1.61, which is quite impressive for a company who recently cut delayed all major releases for this quarter and dropped their quarterly earnings call to avoid stockholder questions over their financial information.

On Wednesday, the THQ stock was at 1.09. To put that in perspective, if a stock price drops below 1 point NASDAQ can take the company off their listings, effectively damning the company's financial fate. Earlier this year prices forced THQ to reverse-split their stocks (A reverse stock split is where a company halves their total number of shares, but doubles the value of their stock. The net worth remains the same, but the stock price technically doubles.) in order to stay listed. The reverse-split only works once, and will not be an option for THQ in the future.



The sad truth, this boost in the THQ stock price is most-likely a temporary one. As of Friday, the THQ stock saw a .2 drop down to 1.41. Although this number is a marked increase over their previous figures, it seems to be leveling out.

The Humble Bundle, while a financially beneficial move, seems like a temporary gain. THQ has not solved their investor problem, and they have not magically increased the popularity of their major triple-A release for 2012, Darksiders 2. Unless THQ is sitting on a major announcement in the coming weeks, the Humble Bundle has only delayed their inevitable fate.

Remember, THQ delayed all major titles for the rest of this fiscal year, which runs through April 1. THQ needs a financial miracle to stay afloat for the next four months. The Humble Bundle was a success, but THQ needs more than a single profitable event to stay alive as a company.

One must keep in mind that the Humble Bundle was indeed a last-ditch effort by THQ. While it was certainly a nice gesture, it did not perform well enough to change their fate.

Fans of THQ feel free to celebrate the good news while you can, but do so with a grain of salt.
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About Snealivone of us since 7:29 PM on 05.01.2012

Howdy!

I'm Sam Neal, and and I'm an aspiring freelance games journalist looking to break into the industry. In the past I wrote features and reviews for Press2Reset on a volunteer basis, as well as conduct video interviews and host the site's news show.

I'm also a third-year Communications and Journalism student at Texas A&M University in College Station, Texas.

When not working on articles, I like to create short films and skits.

 



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