Back in the distopia that modern historians refer to as 2008, I went through my Bar Mitzvah. I had finally been initiated into my people’s definition of adulthood at the wizened age of 13 (lol). I received numerous gifts that day,including shares in the company Electronic Arts from my Grandma
I was very much into what was happening in the gaming industry back then (I still am to some extent). and I suppose the best way to get me interested in business was to find where it would overlap with my other passions. At the time, EA seemed like a fairly well-managed, reliable video game publisher.
Boy did that change.
Me after learning of EA’s standing with consumers
On April 4th last year, EA was named The Consumerist‘s “Worst Company in America”. It wasn’t just last year either. There’s been a growing rage from the hardcore gaming community towards EA that started in 2008. It was only recently that EA;s price per share got anywhere reasonably close to the 2008 share price. So naturally I sold my shares ASAP.
So what did I learn from this? Well that there’s a whole bunch of things you need to look at when deciding to buy stocks, such as price, company growth, etc. But one of the most important things is to find out how the company stands in the eyes of the public.
Just curious,so in your opinion, a company’s public image is more important than is inside management?And that’s the real value of it ?
I think that both are equally important. EA is a very well-managed company, and they’re still around and still making money. But how they present themselves to customers is also a huge factor in where their shares will go.
My point is, you need to take as many factors into account as possible when deciding to invest in a company. You need to ask if there is anything that is problematic. In EA’s case, their public image caused their share prices to go down. Another company could have a great public image, but bad internal management.
WOW!!!! shares in the company Electronic Arts!!! from your Grandma!!! It’s not only valuable but also priceless… Yep EA is a really good company. It’s a little like a…oligarch in the market. EA has different way to stand in the eyes of the public such as advertisement, acquiring company(such as Bioware,Canada, one of my favorite game producer) and the most important, make high-quality games! 🙂
I’m extremely grateful not only for the shares my grandma gave me, but also for the opportunity to learn about the stock market. EA is still a successful company, no mater what their public image is. That’s evident through the examples you’ve listed above. Some might argue about the quality of their games, but that’s rather subjective. What’s important is that their games sell well, which they have been.