10 Worst Stocks So Far in 2012

The worst Dow Jones and S&P 500 stocks at the midway point

      View All  
10 Worst Stocks So Far in 2012

#3 Worst S&P Stock: Electronic Arts

ElectronicArtsLogo e1285772066317 10 Worst Stocks So Far in 2012Sector: Consumer Discretionary
YTD:
-42%

Video game icon Electronic Arts (NASDAQ:EA) is caught in an untenable position this year. On one side, consumer spending continues to be battered by high unemployment — particularly among the younger folks that make up the majority of gamers. On the other is the mobile revolution as games move beyond consoles and hard copies, increasing the competition and eroding the dominance of Electronic Arts in the space.

The strange thing is that EA’s numbers still are strong. The company has seen five straight quarters of year-over-year earnings growth, and after some unprofitable years amid the Great Recession, its earnings have bounced back strongly.

Unfortunately, investors aren’t all that concerned with the present. It’s the fear of the future that has them worried about Electronic Arts. Shares are off 75% since pre-Lehman levels and have struggled to make any headway even since the company returned to profitability in 2011.


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/10-worst-stocks-so-far-in-2012/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.