Electronic Arts
Electronic Arts shares closed 3.5% higher on Friday, bucking the broader market sell-off seen across Wall Street following more hawkish remarks out of the Federal Reserve. The moves, in turn, helped raise shares of VanEck Vectors Gaming and eSports ETF
The stock was boosted by rumors that several companies, notably including an alleged formal offer from Amazon
And the reports were not unfounded on Wall Street, with a string of recent gaming industry acquisitions over the past year adding to their credibility. These include Take-Two Interactive
Other companies like Google
However, USA Today--the publisher that initially reported on the potential EA acquisition--rescinded the first article. The news outlet stated that the original story "violated [the outlet's] editorial standards regarding use of unnamed and unvetted sources".
CNBC's David Faber also damped the flames on Friday, stating that Amazon is not expected to bid on EA. Faber dismissed the USA Today report on the new outlet's "Squawk Box", stating "There's nothing going on," according to sources.
The video game sector has recently seen as drop in spending as global coronavirus lockdowns ease and consumers choose to spend more on entertainment outside the home. Currently, ESPO and HERO are down over 28% and 27% for their respective year-to-dates.