EA is up 16% after its Fortnite competitor gets 10 million players in the first three days

Electronic Arts[1] soared 16 percent Friday after announcing its new Fortnite competitor gained 10 million players[2] in its first 72 hours.

third-quarter 2019[3] earnings. CEO Andrew Wilson had said the company “did not perform to our expectations,” reporting a revenue miss of $1.61 billion vs. an estimate of $1.75 billion according to Refinitiv. But Friday’s rally puts the stock back in the positive for the week, up 7 percent.

Apex Legends, a game from Respawn Entertainment, is a free-to-play game, similar to Fortnite, the popular game that has rocked the traditional gaming industry[4] this quarter.

Apex Legends’ quick traction shows some traditional players are beginning to catch up to the free-to-play, battle royale genre of gaming popularized by Fortnite.

A note from KeyBanc Capital Markets published Friday said it took Fortnite two weeks[5] to gain 10 million players, though it said, “It’s unfair to compare the two, because the market for battle royale was clearly very different 12-18 months ago, but regardless,10M players is quite an accomplishment.”

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Watch: Electronic Arts misses earnings benchmark[7]

References

  1. ^ Electronic Arts (www.cnbc.com)
  2. ^ gained 10 million players (www.ea.com)
  3. ^ third-quarter 2019 (www.cnbc.com)
  4. ^ rocked the traditional gaming industry (www.cnbc.com)
  5. ^ took Fortnite two weeks (www.engadget.com)
  6. ^ Subscribe to CNBC on YouTube. (www.youtube.com)
  7. ^ Electronic Arts misses earnings benchmark (www.cnbc.com)