It’s those shares not rising enough, compared with rivals THQ and Activision. Michael Pachter notes investors ”feel betrayed” by bosses.
”Anytime you underperform, you should be worried about your job,” said analyst Hickey, speaking with Reuters, reports CVG. ”An inability to execute on his performance objectives this year could put him at risk.” EA’s shares have risen just 2.7 percent this last year.
”Investors feel betrayed, and the comment I got most from investors today is ‘They don’t seem to care about investors.’ This management team is running out of room to underperform. I think investor tolerance is gone … they don’t get another year to turn around,” added Wedbush Morgan’s Michael Pachter.
Yet another analyst smells blood in the water too, with Arvind Bhatia of Sterne, Agee & Leach saying, ”For a $4 billion-plus company, that just isn’t acceptable. Something is going to happen here – drastic costs cuts or them buying someone or getting sold – something has got to give in the next 12 to 18 months.”
Pachter believes EA could see salvation in their March and June quarters, it could be enough to give confidence back in management decisions. EA on the rocks? They’ve got title launches like Mass Effect 2 and Dante’s Inferno this year.
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