I wish arcades would come back on every corner too but that's not going to happen. There's a $17.50 PT on this for a reason. Some even think that's a generous price target. Digital has taken over faster than most have thought, collectibles/phones and other segments will struggle to keep up growth while the rest of the company can't stop the deterioration of physical and retail in general. Uphill battle, numbers won't lie and they can't afford to lie in the call. They will look foolish, as usual (compared to when same store sales comps were restricted) when speaking of how they are not sure how the Switch will contribute to future sales and so on while probably making excuses for major losses in brick and mortar. There's no possible way the new segments can keep up with the losses of the old ones which account for 60% of revenues. It's going to be an interesting call. It'll be in the RED for sure but by how much, no one knows. Some good points being spoken about the sale of Kongregate also and how that will be accounted for. Interesting stuff, some would say too little, too late.
Companies face pivotal quarters all of the time. This quarter will go down in history as one of those for GME. Management made the decision after a good quarter about 3 months ago to reiterate year over year guidance instead of making an adjustment to the upside. They could be stuck in a hard spot this quarter. If they don't demolish the numbers this time, they will get slaughtered. Even without upward guidance the loud whispers are fierce, speaking of the Switch invigorating struggling retail stores, making it clear and evident what will happen if they don't perform. This quarter will show part of the upcoming future. I'm interested in what store traffic looked like and how much they lost due to digital and relentless competitors in general. Their constant mistakes and missteps will likely come out soon and be focused on or at least be asked to provide color on. This is the time to watch it come back or fall apart, there's no doubt about that. I can't tell you which way it's going to go but this quarter is sure to provide some answers.
It's about to get UGLY. The action on this will be brutal once again. The line out is getting longer. Teens AH Thurs and lower lows Fri. Don't miss the exit imo
I can tell you which way it's going. GameStop beats estimates on Thursday and guides higher for the year. Mobile accelerates and leads growth. Legacy business continues to pay dividends and position for the next console cycle and virtual reality. Way undervalued. Easy double here. Buy the dips. Go GameStop!
GME trades at 6 times earnings and 4 times cash flow. They merely need to meet there numbers and guide inline and it rallys. Phrases like "whispers", "pivotal quarters", and the like is just nonsense created by our multialias basher to instill fear. Don't buy into it. He has been telling us about a new low since February, yet the NOVEMBER low still stands. Seems he also got the earnings date wrong too to boot!
@fakejedd So basically everyone (and there's obviously a lot of people) who doesn't agree witb you is an idiot even though they'll prove to be right in the long run of this thing going down, right? There are so many reasons why people are saying and writing articles about the negativity of Gamestop. You can keep pumping as you have been, while watching this come way down through the process. You'll probably even keep pumping, as you did after last quarter, after we TANK again after Thursday's ER. Once a pumper always a pumper I suppose until you get smarter and learn how to use derivatives or learn to short. This things going to get RECK'D again after the report. Too risky to be involved and hope ain't going to do it. I'm sorry you made a loser investment and weren't lucky enough to get out but save whatever you have left, as small as it might be and exit before the call IMO. Good luck ALL.
Motley Fool hack Ricky Munarriz and our board basher Ryan/ImposterJedd/etc must be related, as they share a common thread of idiocy. Ricky said this in his article: "explaining why the stock is trading near another fresh 52 week low" The 52 week low is $20.10 and dates back to NOVEMBER 2016. There have been no new lows since, so how can there be "another fresh 52 week low"?
So quickly we choose to forget, I guess. Remember the action after the last report, look for more of that. Kongregate will be added in and it'll still look bad after sifting through the numbers. No future vision for the Switch will contribute negatively. This was at 26 in Feb, it's at 20.98 after close today and will certainly blast past the NOVEMBER lows that seem to be so important to you. There will be less focus on dying retail/brick and mortar and the future/present negative effect of digital downloads and competition, unfortunately those are important factors that they again won't have a solution for. Wake up and watch.
So quick to judge I guess. So what if Obama was still president when the GME low was put in? I have been wrong for 6 months, but so what? The 3 year chart says I will be right. Couple that with Amazon laying waste to all malls, GME's dilapidated stores, and video games going the way of DVD's. Pay no attention to the fact that you can walk into Best buy, Walmart, or a dozen other stores and buy a physical DVD. Games are different. KIds have no interest in trading in their old game disks and getting a new game.
Ridiculous, Jedd F. Akes, haha! "People aren´t buying things there ..." Even more ridiculous: Link from "The Street". Of course they are buying, because Switch is available. They provide it without games also - clever strategy. While Switch isn´t available elsewhere, they haven´t got problems to sell bundles for sure. Last earnings they didn´t know how Switch sales would develop and didn´t raise guidance, so share price tanked. This time will be different. They will raise outlook because of the switch. That´s what matters!
Seems our multialias basher continues to fixate on the unimportant issues, such as "margins on hardware". Last quarter gross margin on hardware for GME was 9.8%. By comparison gross margin on new games was 21.8%, used games 48.2%, digital downloads 81.9%, technology brands 71.8% and collectibles 30.7%. The margin on hardware has always been much smaller than overall gross margin. The Switch gets people in the stores to buy higher margin games. Its doing just that, and the bundling is smart as it ensures a higher margin game(s) will be purchased at GME. The bigger picture however continues to show that the fastest growing parts of the company carry the highest gross margins. This bodes well for earnings.
That's a sad sad statement that even you can't possibly believe, but you're true to your pumping lol. If it's bundled, and for more, they don't need to buy a game or visit the store(again) if they even visited it in the first place. Have you met this consumer? They have everything at their fingertips including snap, facebook, insta and so much more (mobile games) which GME also missed involvement in somehow, but back to the point. They can find it for $299 "unbundled" and get the games (any game not only specific bundled choices) for possibly less and online, Amazon etc, 20% off Best Buy etc. By bundling and selling for more GME misses the consumer which 1, wants to buy it for $299 and 2, makes sure they don't need to return to the store to buy specific titles which carry a better margin than hardware. Less choices for more $ and knowing that the games will be less or more accessible by purchasing online or downloading digital addons . . . . .All in all an interesting strategy. I guess we'll all see how that "strategy" works out soon enough. Sound the alarm!
Amazon Is Absolutely 'Doing Great Damage.' Duh, Mr. President, That's Business
Tell us something we don't know.
With GME successfully bundling new games with the Switch, I believe they will significantly beat the $526 million in new game sales last quarter. Combined with growth in technology brands and collectibles, there is a chance they may raise estimates for the rest of this year.
Who also thinks "The Street" is best contra-indicator on earth? I think when they are bearish it´s a goooooooooood signal to buy!:-)
Wait until the ETF's exit, Skippy? Seriously? Retail ETF's buy retail stocks. Period. You failed to mention that TJX traded higher today after earnings. Or that COH, HD, and DKS trade a P/E multiples double and triple GME's 6 P/E. Its too bad that you only have another 8 days to parade your idiocy here. Enjoy.
The only thing that bundling does is ensure that there will definitely not be a sale at a physical store for a better margin, that's it. Margins on the hardware are the worst ever, you can quote me and look that up yourself too. Combined with lack of brick and mortar, physical sales and the popularity of downloading online there's a better chance they have to guide down to even get close.
@does Your Who's Skippy? And exactly Retail ETFs will exit and will not hold this junk Period. My guess is after a miss and revised down guidance no one will possibly want to be near it except more shorts P/E multiples mean nothing in this market when companies miss badly and retail disintegration takes over Only reason this one trades where it is now is because of the HOPE of the Switch When that's proven wrong because of competition they have nothing In terms of physical they can't stop the bleeding which also spreads to trades They have to hope for miraculous growth in collectibles while core business deteriorates beyond recognition and at a faster pace than anticipated Bad timing to be in this one and ETFs will be the last ones out slamming it into the mid teens on their way out All just opinion of course