Shares of video-game publishers keep dropping
Shares of video-game publishers are nearing rock-bottom prices, but is it time to start betting on a rebound? hat depends on who you talk to and how long you feel like waiting. Some investors, for instance, see short-term plays to be made in at least some of the names — Electronic Arts comes up repeatedly — in the run-up to the holiday season.
We’re there. We’re still buying. We still think it’s time to be buying,” says one hedge fund analyst who asked to remain nameless, but whose firm is long shares of EA and Take-Two and is looking at Activision. Although short-term results at many of the firms won’t be good, “longer term, we’re definitely not worried,” the analyst says. Still, other investors say that the best play right now is to simply stay away. Even if these stocks rally going into the holidays, they’ll likely sell off afterward, just like they did last year. And the stocks likely won’t pick up for good until sometime next year — if that soon.
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