EA Shares Drop Despite Happy Apex Legends Players
Fans of the game Apex Legends waited in anticipation for Season 2 to land and for the most part players were happy. Despite satisfied players, shares in EA declined by 5% as investors weren’t impressed with what EA had cooked up. That was the lowest price for EA shares in five months.
Part of the reason for the decline in share price has to do with reductions in some important metrics. Twitch viewership is down significantly for the game after being consistently around 100,000 concurrent viewers; the game is now at 20,000 to 30,000 concurrent viewers on average reports Dextero.
Analyst Jeff Cohen says that the engagement of Apex Legends on Reddit and the number of Twitch channels streaming the game is encouraging. Some are calling for EA to take Apex Legends cross-platform to get the boost it needs to regain some of its lost momentum.
Investors are concerned about the ability of the game to fight Fortnite. It’s worth noting that stock prices for Activision and Take-Two, key EA competitors also declined, but not as much as EA’s stock price slid.