Publisher shares plummet amid panic trading
Tuesday, 9th August 2011 at 11:13 am
EA stock down 9%; Activision down 5%; Take-Two down 9%; THQ down 8%; FTSE suffers record losses
Britain and the US’s stock have fallen their furthest since the 2008 credit crisis, as trader anxieties continue to seize global markets.
On Tuesday morning the FTSE-100 fell 4.1 per cent, presently signifying a 17.7 per cent fall across the past eight trading sessions.
Yesterday an all-time FTSE four-days decline was recorded.
US stocks plummeted last night at end of trading. The Dow Jones closed 5.5 per cent, in what was the biggest one-day drop since the 2008 sub-prime mortgage crisis ripped through Wall Street.
The Nasdaq fell 6.9 per cent, while the S&P 500 closed down 6.7 per cent.
The panic-selling of stock could have a dramatic impact on games industry businesses, with confidence in steep decline.
Activision Blizzard shares fell 4.64 per cent in the US yesterday. EA performed far worse, with its stock falling 9.25 per cent.
THQ’s fell 7.91 per cent while Take-Two lost 8.81 per cent.
Central to investor fears is how the US political system is responding to its own crisis. Anxieties intensified last week when Standard & Poor’s dropped the nation’s credit rating from AAA, days after Democrats and Republicans appeared to be in a stalemate on how to aid their mounting debt crisis.
Severe debt alerts across Eurozone nations has also flared up market tensions.
President Barack Obama tried to calm nerves by declaring the US “has always been a triple-A country and always will be.”
But the hope to reassure investors appears to have failed. Sinking valuations in ‘secure’ technology companies illustrated how susceptible the technology sector is to the crisis.
Amid fears the US is heading towards another recession, yesterday Microsoft shares fell 4.6 per cent in the US. Google’s fell 5.70 per cent.
Social networking companies, which many said are already in a bubble, suffered some of the biggest losses. LinkedIn shares fell 28.6 per cent.
Zynga may call off its recent IPO, investors are claiming.
“Any company with an IPO planned for this week will probably pull it,” said Dow Jones Investment Banking deputy managing editor John Morris.
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