I feel sorry for you. My son liked GME and was so hyper on the sales of PS4 and Xbox 1 in November last year. I brought this stock at around $52. I lost about $10K. I could lose less because the some analysts are still bullish on GME. I got out because of the Sony article that games will be downloaded and GME will be out of business soon.
As if holiday sales werent bad enough, the really bad news for GME lies ahead.
- There are basically NO games coming out retail for months. Titanfall is XBone exclusive and the Xboxes are not selling very well now. Unlikely to move the needle. Gonna be a seriously grim Q1 and Q2.
- PS4 digital sales are doing great. Check out the latest news from Sony - BioShock Infinite is going to be FREE in February. Thats a real serious game that no PS4 owner will ever go and buy used. Get used to that trend.
- As GME recedes as a market presence, more and more games will go digital only. Check out the comments of all the publishers - they all want digital only.
- Still out there are the new technologies like PS Now streaming, Toshiba's new TV that streams games, Sony's new TV (with NO disc drive) that streams games, Steam, Apple TV, and who knows what else.
So, there is No news on the horizon that can possibly be good. Its all bad from here. Just taking a while.....
Been saying it for a while, nice to see people start to get it.
- Margins compressed selling hardware.
- But, new game sales DOWN 23%. Margins probably tighter there as well.
- Earnings down year over year during what should have been spectacular quarter. New consoles not helping.
Verizon just won an appeal to throw out the FCC's net neutrality rule. This means that cable companies can move to usage based pricing for data hogs like Netflix and YouTube. The price of streaming games just got a lot more expensive.
Since September, $50M of insider sales at $49.52-$51.53, midpoint $50.52.
Since Q3, $134M of company money used to buy back 2.64M shares at average price $50.67. Stock now $36.50, loss of $37M.
The company has been buying at the exact level insiders have been dumping, and now the company cash position is down $37M as a result. The analysts were complicit in this pump and dump too, talking up the "pent up demand" all summer long, then new software sales came in down 22.5%.
I agree. I should have maybe waited for the usual 3 day rule, but only bought a half position, just in case.
Nice. GME drops quick and takes its time climbing (except on news like allowing playable pre-owned games). I think we may see it go a little lower for now since people follow analysts. I'd expect to see some huge purchases today from investors expecting it to climb a few bucks in the next few weeks.
But by saying that, you're repeating what was said to longs at $20, too. I'd say anyone selling today who bought against this kind of advice are feeling pretty good, maybe even with the panic/lemming sell today.
Waited a long time for an entry point ...got it at $37.50. Earnings were not the best but holy cow....down 20% is a bit much, don't ya think? glta