EA stock drops 3% after analyst expresses doubts on SWTOR
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Investors have been scared away from EA by an analyst's prediction that Star Wars: The Old republic won't live up to prior expectations.
Brean Murray Carret & Co issued a note to investors on Thursday morning, slashing its price target on EA stock from $22 to $28. Analyst Todd Mitchell said he had "creeping concerns" over Star Wars: the Old Republic's profitability.
"Specifically, initial sales appear to be below expectations, and casual observation of early play is causing us to rethink our churn assumptions," Mitchell said, as reported by MarketWatch.
Investors were so spooked by the warning that EA stock took a beating, dropping almost 3% to $17.75.
EA and BioWare have expressed nothing but satisfaction with the launch so far.