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EA stock jumps after Riccitiello announcement

EA stock jumps after Riccitiello announcement

Mon 18 Mar 2013 11:21pm GMT / 7:21pm EDT / 4:21pm PDT

Investors apparently approve of the change

Electronic Arts' stock is up over 2.6 percent in after-hours trading following the announcement of the departure of CEO John Riccitiello. So far this year EA's stock price has climbed from below $14 per share to nearly $19 per share, despite the publisher's mixed results last quarter.

EA's stock price is facing multiple challenges ahead, particularly since Riccitiello noted that the next quarterly results will not be great: "However, it currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued in January, and we have fallen short of the internal operating plan we set one year ago. EA's shareholders and employees expect better and I am accountable for the miss," Riccitiello said in his letter of resignation.

Additionally, retail game sales continue to decline (down 25 percent in February) and there is great uncertainty as to the future of next-generation consoles. EA's recent troubles with Medal of Honor: Warfighter and the launch of SimCity have continued to mar the company's image.


Paul Jace

925 1,380 1.5
The way the stock market operates is one of the most amusingly silly things I have ever seen.

Posted:A year ago


Mikael Bruun-Hansen

5 0 0.0
EA is down more than 4 % atm.

Posted:A year ago


Richard Browne
EVP Gaming and Interactive

99 114 1.2
And the winner of ill-advised article of the day is. . .

Posted:A year ago


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