Original 4th quarter guidance: $1.47 to $1.65
Updated 4th quarter guidance as of the 7th: $1.25 to $1.29
If you look at the miss from the high end of the guidance then it's 21%, although that's still pretty misleading.
Two points...1) I take it management knew the comps they had to rollover when they set Q4 revenue expectations...which the missed by 21%.
2) Take a look at this and help me understand why anyone thinks GME is a buy:
I keep seeing this 21% miss referred to. This calculation is flawed as you are basing the reported 9 week holiday period sales of 2.84B to the entire quarter estimate of 3.21B. The fiscal quarter ends Jan 31. That's just inaccurate math creating an overly negative bad statistic.
"Again, the market trades looking forward...sustained growth prospects are weak. That's what the market is saying. Sorry if you don't like it."
Look at the pps. How much growth do you think is priced into GME right now? Pretty much none whatsoever. Now comps are much more favourable this year than last - when they start seeing YoY increases in revenue, where do you think the share price is going to go? Conversley, how much further do you think it can reasonably fall from this level?