(Reuters) – Shares of Electronic Arts Inc jumped 8 percent on Tuesday after the game maker said on 25 million players signed up for the new battle royal game “Apex Legends”.
A Electronic Arts (EA) – video-game-logo is shown at the Electronic Entertainment Expo, or E3, in Los Angeles, California, United States, June 17, 2015. REUTERS/Lucy Nicholson/File Photo GLOBAL BUSINESS WEEK AHEAD ” PACKAGE SEARCH “BUSINESS WEEK AHEAD AUG 1” FOR ALL photos
EA hopes to reproduce the success of Epic Games’ “Fortnite”, which is the mixing of “The Hunger Games” and “Minecraft” was a worldwide hit with the teenagers and the older gamers for the last two years.
EA announced the new number on Monday on Twitter bit.ly/2I3HaHw. “Apex Legends” signed to 10 million players within three days after the launch of EA said last week, a milestone that Fortnite had taken two weeks to reach.
Friday, the game was the most watched on gaming live-streaming network twitch.
“(Electronic Arts) topsy-turvy CY19 took a decidedly positive turn last Friday, when they announced “Lightning Legends”,” Bernstein analyst Matt Romariz said, raising his price target on the stock by $29 to $120 – well above the median of the Wall Street target of $95.
“Apex Legends’ is a stunning success should also greatly reduce the frustration with the management, sometimes expressed by the investors. Apex Legends shows a brave innovation,” Romariz said, adding that “Fortnite” it took three months to 30 million users.
The news comes almost a week after the company lowered its annual revenue forecasts following weak sales of the “Battlefield” V ” title, that had sent its shares plunging 18 percent.
After a 9.6 percent increase in intraday on Monday, the stock closed slightly lower at $97.24.
Competitor Activision Blizzard Inc, was almost 1 percent compared to the quarterly results, due after the bell.
(This story was refiled to correct to the Apex Legends of Apex Legend in the analyst quote in paragraph 6)
Reporting by Akanksha Rana in Bengaluru; Editing by Saumyadeb Chakrabarty