EA shares got a boost yesterday after a Citigroup analyst upgraded the stock from Hold to Buy status, but those gains are all but gone today.
Stocks of the publishing giant closed Monday at $51.35 and climbed to a close of $52.86 on Tuesday's word of the stock upgrade. EA stock has fallen 9 percent since the fiscal first quarter, which Citigroup analyst Elizabeth Osur noted before suggesting long-term investors snag the stock in advance of the next wave of console launches, according to an Associated Press report. The company's potential to outpace the industry's growth as a whole, as well as its opportunities to make acquisitions in the field, were also listed as reasons to invest in the stock.
Investors today might have had second thoughts about that analysis (or maybe just the resulting stock surge), as trading volume on EA stocks was 50 percent higher than normal, and shares closed the day at $51.45. As of press time, the slide had continued into after-hours trading, hitting as low as $51.32.
It's been an up-and-down year for EA (mostly down), as the company peaked in March with a $71.16 close, only to slide throughout the year on news like the delay of the anticipated Godfather game to 2006 and the September departures of key executives Don Mattrick and Bruce McMillan. Despite these setbacks, EA shares were still trading above $60 as recently as last month.