In a recent post, I lamented the drop in stock price for shares in Electronic Arts. It dropped to almost under $70 for the first time in months and I was yelling the sky was falling and hoping that a strong holiday season might raise the stock price again. Well, it only took until Wednesday for things to improve. For reasons still unknown to me, the stock jumped up over $3 that day. The markets were relatively flat that day, so it wasn’t like the stock rode a rising tide that raise all boats. EA itself did not make any announcements. They had just disclosed financials earlier last week. Even though everyone in industry was at Gamescom on Wednesday, EA didn’t reveal any new games at the convention. There was nothing to concrete out there that would have accounted for the 5% jump in stock price.
Perhaps this is another lesson that the stock market cannot be predicted nor trusted. Now, did I sell when I saw it go above $75? No, I did not. I still think after the holidays is the right time to sell.