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Electronic Arts Inc. (ERTS) Message Board

  • SPECULAWYER9 SPECULAWYER9 Jun 22, 2000 12:10 PM Flag


    The force is strong in this one.

    Perhaps the upcoming losses announcement will discipline it.

    Or perhaps they've got the greenlight from wall street to be the runaway success leader.

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    • I actually only missed out on $6 of the Yahoo
      drop and re entered my position on Friday. It has been
      quite a profitable trade for me and there is more
      downside coming for both YAHOO and ERTS.

      From Smart
      money on Yahoo

      But what about Yahoo! (YHOO)?

      Widely hailed as one of the few "real" Internet stocks,
      the portal company has nonetheless slipped 15% to
      $125.31 since Tuesday, after another Lehman Brothers
      analyst, Holly Becker, raised the specter that its revenue
      prospects could be turning gloomy. Perversely, she pointed
      out, one of the Net's few profitable companies could
      see its revenue growth stall out this summer because
      of its heavy dependence on advertising revenue from
      less-resolute dot-coms, who are under pressure to slow their

      �There are a lot of unsophisticated
      marketers out there, but that won't continue

      Jupiter Communications analyst

      While Amazon's woes are well documented and
      built into its stock price already, the doubts suddenly
      swirling around Yahoo could create much more short-term
      damage. The company obviously boasts enough traffic and
      alliances to be formidable in the long term. But the next
      several months could force investors to re-evaluate what
      makes Yahoo work.

      Here's what's going on.

      Yahoo, according to its most recent annual report,
      relies on short-term advertising contracts for more than
      half its sales. Advertising generally makes up about
      80% of revenues. Until this year, Yahoo grew amid
      dot-coms that spent madly on advertising � according to
      Becker, as much as 100% of their yearly budgets � to get
      in front of consumers. But those contracts are often
      the first casualties when a dot-com scales back on
      spending, according to Jupiter Communications analyst
      Marissa Gluck.

      Meanwhile, the businesses that
      Yahoo expects to supplant ad revenue are all likely to
      stay pretty small until a critical mass of consumers
      have high-speed Internet connections in their homes or
      pockets. These include live broadcasts of events and
      incarnations of the Yahoo site on portable devices. Investors
      have to wonder what will become of Yahoo's stock
      momentum if any time passes between the peak in
      advertising and the surge in commerce.

      It's a twist
      worthy of an O. Henry story. Becker started covering the
      stock Wednesday with a blasphemous Neutral rating,
      citing this revenue concern. Even Henry Blodget of
      Merrill Lynch, the genteel Internet oracle, expects "a
      strong but slightly less robust" second quarter compared
      with last year's growth. When Yahoo announces its
      results in a few weeks, investors will be listening for
      reassurances. But eventually, new growth will have to come from
      new sources.

    • missed his YHOO gains, since it seemed he covered
      one day too soon. Wow, the Amazon sh*t has spread
      over to the other sectors as well. So, I wonder if
      he's celebrating or crying right now.

      day on the market.

    • he's walking on thin egg shells right now. Nsthil
      over the last month found the key to the lock but the
      street is changing the lock now!!! His short persistence
      will soon lead him over the day, Nshil will
      keep shorting ERTS as is shoots past 80.

    • Nisthil's perseverance! You go, boy.

    • open market or cheap shares from stock option grants? Also May purchases were at $50 to $55 range not $80. I loved ERTS at $50 also.

    • going on. ANyway covered my YAHOO short for a nice profit and shorted another batch of ERTS at around $78.

    • Yes, it's odd, the link of insider buy is there
      but the news is gone. Could be a mix-up on the trade
      date. ERTS is too smart to have someone even giving an
      appearance of trading based on insider info.

      institutional buying today. Hmmm... and didn't leave much of
      the available shares for the shorts to cover. Wonder
      if it was a short squeeze at that

      Best of luck.

    • looks like I should have heeded that insider
      purchase announcement. Would have locked in $10/share and
      then I could have jumped all over it again here.

      Cest la vie

      Still short at an avg 71

75.70+0.59(+0.79%)May 27 4:00 PMEDT