Sections

EA stock jumps after Riccitiello announcement

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.

Related stories

35% or more of EA Sports players spend on Ultimate Team

CFO Blake Jorgensen says publisher focuses on getting people into the funnel, not on making payers spend more

By Brendan Sinclair

Popularity of linear games declining - EA

CFO Blake Jorgensen says cancelled Star Wars project was a type of game "people don't like as much today as they did five years ago or 10 years ago"

By Brendan Sinclair

Latest comments (3)

Paul Jace Merchandiser 4 years ago
The way the stock market operates is one of the most amusingly silly things I have ever seen.
1Sign inorRegisterto rate and reply
Mikael Bruun-Hansen student 4 years ago
EA is down more than 4 % atm.
0Sign inorRegisterto rate and reply
Richard Browne Partner & Head of Interactive, Many Rivers Productions4 years ago
And the winner of ill-advised article of the day is. . .
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.