In this episode, Scott Becker analyzes three major stock drops from yesterday.
Chapter 1: What is the purpose of this podcast?
This is Scott Becker with the Becker Private Equity and Business Podcast. We try to make sure you're learning, that we're learning, that you're entertained some, that I'm enjoying it, and so on. If you ever have a comment on a topic, feel free to Text Scott Becker at 773-766-5322.
Chapter 2: What are the major stock drops discussed?
So thrilled to be ranked in the top one or two this week in the Apple Business News rankings for business news sources right next to three or four Wall Street Journal podcasts. So God bless you all for listening. Today's discussion is three stocks that tanked on Thursday. And so we're going to go through Electronic Arts, American Airlines, and Booz Allen Hamilton.
Chapter 3: Why did Electronic Arts stocks drop significantly?
And faster to see what's going on here. So Electronic Arts, EA, missed revenues by an absolute ton, by about 20%. Its stock, it missed what was expected by Wall Street estimates, came in at 1.8 billion versus 2.3 billion. That's a big, big difference than what was expected. Their stock finished down about 17% on Thursday. The second stock we're talking about is American Airlines.
Chapter 4: What can we learn from the American Airlines stock drop?
There's been so much positive press about the airlines over the last couple months that this was a real surprise. Again, American Airlines had some specific problems this quarter, some computer problems, some other problems. They're blaming it on weaker demands and higher fuel costs, but they missed earnings by a good deal. They've projected that things are going to be tough.
Their stock is down 8.65% when we last looked at it on Thursday. And finally, the third stock, Booth Allen Hamilton. And Booth Allen is a fasting firm. At one time, it was really a traditional consulting firm. Then over the years, it became more and more involved in IT and the military. And now what's happening in D.C.
is concerns about what that IT spending will look like, who's going to have influence on it, and a lot of other things. So both Booz Allen Hamilton and other players in that sector all took it on the chin a little bit today. When I last looked at it, Booz Allen Hamilton, Booz was down about 4.5% to 5%. So again, three big losers. Electronic Arts, the biggest loser.
This is not a good loser like you want to lose weight. These are losers in the stock market as of Thursday. American Airlines down 8.65% and Booz Allen Hamilton down about 4.5%, 5%. Three big losers on Thursday. Thank you for listening to the Becker Private Equity and Business Podcast.