EA's stock dropped 18%, wiping out $6 billion of its valuation, following a revision in financial forecasts. Expected bookings were reduced from $2.4-$2.55 billion to $2.215 billion for the quarter, lowering annual expectations by $0.5 billion. Key drivers included a decline in microtransaction revenues, notably with FC 25 losing momentum and Dragon Age: The Veilguard underperforming. The company now projects a mid-single-digit decline in live services bookings, a significant shift from earlier growth expectations.
EA's stock prices plummeted 18% today, cutting $6 billion from its valuation, driven by lowered financial forecasts and declining microtransaction revenue.
As microtransactions, typically a revenue growth area, are now projected to decline, EA has revised its outlook significantly downwards for the fiscal year.
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