EA Soars 11 Percent on Hopes for a Bottom; Doubts Remain
The morning after top U.S. videogame maker Electronic Arts (ERTS) missed sales and profit estimates for its fiscal third quarter, cut its forecast for next year, and said it will cut 1,100 jobs, or 11 percent of its workforce, the stock is up $1.75, or 11 percent, at $17.25. Perhaps reduced expectations have convinced some the stock has bottomed. After all, the shares were down 72 percent from their 12-month high of $54.81 at yesterday’s close.
However, the analyst community still finds much to fret over.