dent THQ stock
Despite JP Morgan's rating downgrade, the plucky publisher's
share price rises on news it is the year's number-two publisher
Typically, when one of the country's top financial institutions
downgrades a company's stock, its share price falls through the
floor. Today, though, THQ Inc. (NASDAQ: THQI) bucked the
all-too-common trend. Despite having its stock downgraded by JP
Morgan ("overweight" to "neutral"), the company saw its share
price rise slightly, ending the day up $0.32--1.44 percent--at
$22.55. Its stock was down a similarly small amount in
A possible reason for the nonimpact of Morgan's rating was a
press release issued by THQ just hours after the downgrade.
Bearing the self-explanatory (and unwieldy) headline "THQ #2
Independent Video Game Software Publisher Year-to-Date in U.S.
and U.K. Markets According to NPD Group, UK Chart-Track," the
release touted the fact that through the end of August, only one
other third-party publisher sold more games than THQ in North
America and Great Britain.
As was to be expected, the release contained some
self-congratulatory language from a THQ executive. "Our
leadership is the result of THQ's strategy to build on our
long-term sustainable brands by introducing innovative new
original properties with broad global appeal," said president
and CEO Brian Farrell. "We plan to build on the recent success
of Destroy All Humans! and Juiced by creating innovative, new
original games for the Xbox 360, such as Saint's Row and The
Outfit, as well as critically acclaimed original titles for
Windows PC, including Company of Heroes, Supreme Commander, and
Unsurprisingly, THQ's release did not identify the number-one
third-party publisher of the first eight months of 2005. The
company in question is likely either Electronic Arts, the
traditional top dog, or Take-Two Interactive, which had been
enjoying record sales of Grand Theft Auto: San Andreas until the
game was forced off store shelves in late July.
To learn more about THQ's future lineup of games, check out
GameSpot's complete coverage of the 2005 THQ press event.