4.3800 0.00 (0.00%)
After hours: 6:08PM EDT
|Bid||4.3600 x 2900|
|Ask||4.3700 x 1300|
|Day's Range||4.3300 - 4.6450|
|52 Week Range||4.3300 - 17.2700|
|Beta (3Y Monthly)||0.13|
|PE Ratio (TTM)||N/A|
|Earnings Date||Sep 4, 2019 - Sep 9, 2019|
|Forward Dividend & Yield||1.52 (32.00%)|
|1y Target Est||6.55|
A clearance sale is one of the great miracles of business, one Amazon (NASDAQ:AMZN) shared with small merchants on Prime Day.Source: Shutterstock Merchandise is usually sold to retailers on "60-day net" terms. That means they have 60 days to pay for it. Big box retailers like Walmart (NYSE:WMT) destroyed small retailers by turning goods over in two weeks, selling goods before they bought them.Prime Day is a clearance sale, where AMZN expects to bring in about $5 billion during what would normally be a slack period.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip That's why clearance sales are held in the summer. They create excitement when stores, both online and off, would otherwise be empty. Competitor Walmart Joins the FunFour of Amazon's 10 biggest sellers this year were electronics products from last season. Basically, stuff it needed to move to make room for new stuff.Thanks to the hype Amazon has created around this "event," other big retailers are able to do the same thing.Walmart was able to move many of the same slow-selling products Amazon was selling, along with mattresses, tents, and electronics.Best Buy (NYSE:BBY) moved speakers, monitors, and robot vacuums. Gamestop (NYSE:GME) was able to push out old Nintendo equipment. Wayfair (NYSE:W) got rid of outdoor grills and patio furniture before the season changes. Even eBay (NASDAQ:EBAY) was able to unload old drones, printers, and cameras.For those seeking a lesson in all of this, note how many of these stores, including Amazon, were offering special deals on the Apple (NASDAQ:AAPL) Watch.By turning a mid-summer clearance into a holiday, Amazon was able to clear the decks for itself and for others before they must commit to buying the holiday merchandise that makes for profits. Prime Day also provided a stern test for Amazon's fulfillment system, its warehouses, and delivery people, before competition heats up in the fall. The Real Amazon ModelThe success of Prime Day comes as Amazon is under government pressure to change its current sales model, which emphasizes third parties, eliminating the inventory risk which makes clearance sales necessary.An appeals court ruling that makes Amazon responsible for products it never owned, combined with a European agreement forcing it into better treatment of third party merchants, could induce it to take back some inventory risk.So could the rising cost of counterfeits and Congressional complaints that Amazon's off-brand merchandise is unfair to third parties.Amazon's Asian rival, Alibaba (NASDAQ:BABA), has been steadily increasing its inventory risk, while Amazon has reduced its own to make money on fulfillment. The Amazon purchase of Whole Foods two years ago has yet to pay off, while Alibaba has been buying entire shopping malls to gain more control over customers.A change of direction by AMZN could devastate small businesses. About 58% of Amazon's retail sales are on behalf of third parties. 73% of them are by small businesses with five or fewer employees. Such small businesses are also those most likely to be selling counterfeit goods. Amazon has little choice in cracking down. The Bottom Line for AMZN StockAmazon is a retail ecosystem. It lets small companies compete directly with Walmart, Target (NYSE:TGT) and other big box shops, setting up online shops, shipping through automated warehouses, and getting the best deals on bookkeeping and delivery.Amazon is proud of these merchants, giving them access to its entire set-up, including analytics tools.As the sun sets on another Prime Day, with courts and legislators closing in to call Amazon a monopoly, these small merchants are its secret weapon. They should no longer be a secret to Amazon shareholders.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN and AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Amazon Prime Dayas Secret Weapon appeared first on InvestorPlace.
GameStop Corp. (GME) today announced the final results of its “modified Dutch auction” tender offer to purchase up to 12,000,000 shares of its Class A common stock, par value $0.001 per share. The tender offer expired at 5:00 p.m., New York City time, on July 10, 2019. In accordance with the terms and conditions of the tender offer and based on the final count by Computershare Trust Company, N.A., the depositary for the tender offer, GameStop accepted for payment, at a purchase price of $5.20 per share, a total of 12,000,000 shares properly tendered at the purchase price and not properly withdrawn before the expiration date, at an aggregate cost of $62,400,000, excluding fees and expenses relating to the tender offer.
The face of retail is fast-changing, and the R/GA agency has signed on to help GameStop come up with new retail concepts.
GameStop Corp. (GME), today announced a strategic partnership with global innovation design firm, R/GA, to strengthen its focus on creating unique in-store experiences as part of its strategic move in re-affirming its place in the video gaming culture. The partnership with R/GA’s Austin and Chicago teams is part of GameStop’s broader business transformation strategy to evolve its efforts in cultivating innovative customer-centric opportunities to bring video game culture to life in every neighborhood. GameStop’s renewed customer-first focus stems from qualitative and quantitative research led by GameStop and R/GA that identified four major motivations gaming fans have for playing video games – immersion, achievement, creativity and community.
Electronic Arts (NASDAQ:EA) has yet to make it convincingly clear it can cultivate the opportunity to its fullest. But if EA stock is to move higher again, the company requires subscriptions and streaming to jumpstart this recovery.Source: Shutterstock The game publisher already has a presence on both (and sometimes overlapping) arenas, to be fair. It has been a modest, seemingly experimental effort to date though. However, EA experienced a wake-up call last year. That was when a horrendous selloff cut the EA stock price in half. With this painful lesson still fresh, the company finally appears motivated to embrace all the new norms in video gaming. Electronic Arts Stock Pays for Missing the First BoatLong-term investors of Electronic Arts stock know the story all too well. Once a powerhouse within the gaming industry, EA lost its shine. Last year's delays in releasing its most recent Battlefield title angered gamers. Plus, the company imposed multiple micro transactions for consumers to enjoy 2017's Star Wars entry created a revolt.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Finally, the unexpected, disruptive success of rival game Fortnite contributed to heaping pain on top of Electronic Arts stock.A fatal shooting at a competition last year involving one of its Madden NFL games only exacerbated the doubt that suddenly surrounded the company. This tragedy contributed to driving the EA stock price from July's high near $150 to December's low of around $75.However, the game-related stumbling blocks were microcosms of bigger, more philosophical problems. The industry -- and how people consume games in particular -- has been changing. But EA hadn't fully changed with it.One of those shifts has been the democratization of game distribution. The advent of downloaded games has proven to be a mixed blessing for EA stock as well as rivals like Activision Blizzard (NASDAQ:ATVI) and Take-Two (NASDAQ:TTWO). By selling directly to consumers, publishers can bypass middlemen like GameStop (NYSE:GME) and Walmart (NYSE:WMT), retaining more profits for themselves.The very same high-speed internet connections and consoles with hard drives, though, facilitated the creation of game repositories like Steam. These technologies also sparked the rise of a countless number of indie game developers.And as it turns out, some of those independently developed games - including Fortnite -- are pretty good.Electronic Arts answered, launching EA Access in 2014, followed by a more robust subscription service called Origin Access.And with last year's release of "Project Atlas," EA hopes to set a framework for future relevancy in the gaming business. Uncanny InsightThe game-streaming and subscription business is far from fully gelled. Electronic Arts stock may have potential competition from Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) entering the fray. Microsoft (NASDAQ:MSFT) is already there.However, EA is in a unique position, having learned from past failures (and successes) within the subscription business. Keep in mind they don't have a console system to lean on.EA's subscription chief, Senior Vice President Mike Blank, has demonstrated some important even if subtle savvy on this front. Last month, Blanked stated, "We need to be where the players are and not every player is going to be on every service or device, just like not every viewer is on Netflix."It's a seemingly obvious statement, but it's a realization rivals don't seem to have fully embraced.Blank further recognized that "We're evolving from a publisher of games to a connector."In other words, just because they build it doesn't mean players will come.EA has yet to fully decide if it will cultivate its own streaming/subscription service (more than it already has). A meaningless "maybe" is all Blank is willing to offer at this point. That leaves investors and gamers alike wondering exactly how monetization will occur with Project Atlas going forward.Electronic Arts knows, however, that it also needs to rethink more than just delivery. Its portfolio of games, while respectable, is aging with little innovation. A Rethink for Gaming RelevancyA subscription-based model will dramatically help on that front by supplying a steady revenue stream rather than forcing the development of nothing but blockbuster titles that sell tens of millions of copies.Blank goes on to say "The value of a subscription is ultimately, from a business standpoint, how much do players engage with the subscription. If you can provide them with new and different experiences they might stay for longer. I think we will build new and different games that will fit within the subscription itself."It wasn't a direct allusion to more indie and indie-like games. But it's noteworthy that Electronic Arts has stepped up its efforts -- in a big way -- to work with independent game developers. Last month, the company announced Zoink Games, Glowmade and Hazelight Studios will each soon see one of their games published with an EA label on it.It's a largely unprecedented pace, suggesting the organization is rethinking everything from the top down.It also aligns with recent comments from EA's VP of strategic growth Matt Bilbey. He told GameIndustry.biz earlier this month "The conversation now can flip from platform holder to game creator because they are so intertwined. The game that creators are going to make is going to evolve based on what people are consuming on." Looking Ahead for EA StockWhat Electronic Arts exactly has in mind for the new era of video games remains at least a little unclear. Indeed, it's possible that even EA doesn't precisely know where it's going, even as it moves forward.It is clear, however, that Electronic Arts has pushed itself through a pretty significant rethinking of its place in the video game industry. Also, it appears it's had some tough conversations about relevancy where subscriptions are the norm and players are growing more interested in less-touted titles. The so-called "long tail" of video game choices is getting longer and wider.It's far from an assurance that EA stock will make a full recovery in the near future. But it certainly doesn't hurt the bullish argument.As of this writing, James Brumley held a long position in EA stock. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Subscriptions, Streaming Integral to the Bull Case for EA Stock appeared first on InvestorPlace.
Shares of videogame and collectibles retailer GameStop fell to near 2019 lows Thursday as the company’s tender offer for its shares expired.
GameStop Corp. (GME) today announced the preliminary results of its “modified Dutch auction” tender offer to purchase up to 12,000,000 shares of its Class A common stock, par value $0.001 per share. The tender offer expired at 5:00 p.m., New York City time, on July 10, 2019. In accordance with the terms and conditions of the tender offer and based on the preliminary count by Computershare Trust Company, N.A., the depositary for the tender offer, GameStop expects to accept for payment, at a purchase price of $5.20, a total of 12,000,000 shares properly tendered at the purchase price and not properly withdrawn before the expiration date, at an aggregate cost of approximately $62,400,000, excluding fees and expenses relating to the tender offer.
Our roster of companies whose time might have come and gone includes Gamestop, JCPenney, Blue Apron, and maybe Tailored Brands
GameStop (GME) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
GRAPEVINE, Texas, July 03, 2019 -- Are you looking for the best deals on the hottest video games this summer? If so, you don’t have to wait until the holiday season to see the.
GameStop Corp. (GME) announced the issuance today of restricted stock awards to Mr. James A. Bell, its new Chief Financial Officer, and to Mr. Chris R. Homeister, its new Chief Merchandising Officer. Consistent with the disclosures contained in a Form 8-K filed with the SEC on May 30, 2019, GameStop agreed to issue these awards to induce Mr. Bell and Mr. Homeister to enter into employment with GameStop. These awards were issued outside of GameStop’s stockholder approved equity incentive plan, in reliance on the employment inducement award exemption contained in NYSE Listing Rule 303A.08. GameStop is therefore issuing this press release pursuant to NYSE Listing Rule 303A.08.
During the month of July, to honor these brave women and men, GameStop will once again partner with the Call of Duty Endowment (the Endowment) to do its part to help these veterans finds meaningful jobs by asking customers to donate, round up their total, or trade-in for charity at every U.S. GameStop store location and on gamestop.com. Donate PowerUp Rewards points.
“As we continue to evolve in the esports space, we are always looking to identify the right partnerships to help support and grow our esports ecosystem – and Justin Wong fits the bill perfectly,” said Frank Hamlin, chief customer officer for GameStop.
The National Football League is the most successful sports league in the world. How does the NFL make money, and what is its strategy to stay on top?
Streaming and new consoles are coming to the $100 billion video game industry but who is on the cutting edge, and who will be left behind, as the industry innovates?