Why MannKind Corporation (MNKD), Electronic Arts Inc. (EA) and GameStop Corp. (GME) Are 3 of Today’s Worst Stocks

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The market got the new week started on a bullish foot, despite disappointing sales of existing homes. But, when push came to shove later in Monday’s session, the bears took over again, sending the S&P 500 0.12% lower to a close of 2,086.59.

Why MannKind Corporation (MNKD), Electronic Arts Inc. (EA) and GameStop Corp. (GME) Are 3 of Today's Worst StocksAnd some stocks had it much, much worse. Among the session’s biggest losers were GameStop Corp. (NYSE:GME), MannKind Corporation (NASDAQ:MNKD) and Electronic Arts Inc. (NASDAQ:EA). Here’s what investors need to know about each.

Electronic Arts Inc. (EA)

The hype building up to last week’s launch of Electronic Arts’ video game Star Wars: Battlefront was almost palpable by the time the date arrived. But, all things considered, sales of the much-ballyhooed video game — even in front of the new Star Wars movie — have been surprisingly disappointing, sending EA shares lower by 5% on Monday.

The bad news wasn’t actually dropped by EA, though. Video game retailer GameStop did the deed when, along with a revenue and earnings shortfall, it also noted that sales of Star Wars Battlefront had been weak following its debut last week.

Still, many industry insiders, including GameStop COO Tony Bartel, expect sales of the game to improve as Christmas and the release date of the newest Star Wars movie in years (slated for December 18th) approach. On that note…

GameStop Corp. (GME)

While Star Wars: Battlefront hasn’t done as well as hoped, GameStop can hardly blame EA for its third-quarter weakness. Battlefront was released just a few days ago, while the quarter in question ended last month.

In any case, GameStop earned 54 cents per share on revenue of $2.02 billion last quarter, versus expectations for a profit of 58 cents per share of GME and a top line of $2.14 billion. Both the third-quarter top line and bottom line fell from last year’s levels too.

The bulk of the 4% loss GME logged for the day, though, stemmed from its alarming guidance for the current quarter. In light of (though not entirely because of) the tepid initial response to Star Wars: Battlefront, the retailer lowered its Q4 earnings outlook to between $2.12 and $2.32 per share. Analysts had been looking for a profit of $2.37 per share of GME.

BB&T Capital Markets analyst Anthony Chukumba named the ongoing proliferation of digital game downloads as a key headwind for GameStop.

MannKind Corporation (MNKD)

Last but not least, MannKind Corporation shares fell 9% on Monday after it was announced last Friday that CEO Hakan Edstrom had stepped down.

MNKD shares initially rallied late last week following the news, largely on hopes that change — any change — would be beneficial for the struggling company. However, with a weekend to think about it, MNKD shareholders decided it was a sign that MannKind may be beyond the point of salvaging.

In lost-cause cases like these, the exit of a top executive and the uncertainty it brings can augment existing problems.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/11/mannkind-corporation-mnkd-electronic-arts-inc-ea-gamestop-corp-gme-3-todays-worst-stocks/.

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