Battlefield V delay triggers EA share plummet, hedge fund exodus

Activision and Take-Two's stocks also take a hit in turbulent and competitive Q4

Electronic Arts' share price has been dropping ever since it announced Battlefield V was to be delayed until November - in part due to investors abandoning the AAA publisher.

Bloomberg reports that nine hedge funds exited their stakes in EA during the three months ended September 30. A further seven downsized their stakes in EA in the same period.

Battlefield V was originally due on October 19, pitting it against Red Dead Redemption II, which launched a week later, but EA decided to shift the shooter back to November 20.

The delay was announced on August 30. Looking at the publisher's performance via a NASDAQ tracker, EA's stock had dropped to $115.94 per share by the close of trading that day. It slowly rose to $120.49 by September 28 (the last day of trading for that month), but since then Bloomberg reports it has dropped by almost 30%.

The site suggests that some of these hedge funds shifted their investments into other AAA games publishers - namely, Activision and Take-Two. The latter attracted four new funds before September 30, while Activision attracted eight. Both had major releases planned for October: the aforementioned Red Dead and Call of Duty: Black Ops 4.

That's not to say either of these two publishers have had a significantly smoother ride than EA. Both have seen their stock decline dramatically since September 28, with Take-Two down by 23%, and Activision suffering a 38% decline.

Despite the fact that Black Ops 4 broke Activision's digital sales records, was widely praised, and took $500 million in its first three days, investors appear to have been disappointed with its performance - perhaps due to the hype surrounding the game beforehand.

Shares started to drop on October 17, just three days after Black Ops 4 launched, with further hits to the publisher's share price after the Diablo Immortal fallout and weaker-than-expected revenues in its latest financial results.

Meanwhile, Take-Two's share price saw steady declines after September 28, and also took a hit on October 17 - amid the debate over Rockstar's 100-week working practices.

But it's stock sharply rose around October 30, after the announcement that Red Dead Redemption 2 took $725 million in its first three days on sale.

More stories

Hazelight drops It Takes Two trademark after Take-Two takes interest

Grand Theft Auto parent company has made 25 challenges in the past three months to protect its trademarks

By Jeffrey Rousseau

Activision Blizzard creates Workplace Responsibility Committee

Committee to oversee progress to "improve workplace culture and eliminate all forms of harassment and discrimination"

By Marie Dealessandri

Latest comments (1)

Rockstar Games parent company Take-Two (TTWO) will overtake Electronic Arts (EA) as the world second largest publicly traded game company measured by market capitalization Q1 2020.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.