59.97 0.00 (0.00%)
After hours: 6:10PM EDT
|Bid||57.75 x 800|
|Ask||60.99 x 800|
|Day's Range||59.68 - 60.25|
|52 Week Range||41.91 - 61.02|
|Beta (3Y Monthly)||0.95|
|PE Ratio (TTM)||12.61|
|Forward Dividend & Yield||0.37 (0.61%)|
|1y Target Est||N/A|
Is now the time to invest in Nvidia (NASDAQ:NVDA)? Nvidia stock has been on a bit of a run this month, up 12% since September 3. NVDA has gained an impressive 38% so far in 2019 -- yet remains far from the $281 highs it hit last October.Source: Hairem / Shutterstock.com The majority of analysts have it as a buy. However, despite their bullish attitude, at its current $184 level, there is little upside to buying now, when those same analysts have an average 12-month price target for NVDA of $189.27.Should you buy Nvidia stock at this point? Does it have the potential to continue growing, or has NVDA pretty much run out of steam?InvestorPlace - Stock Market News, Stock Advice & Trading Tips AI Is a Future Nvidia Stock CatalystThere is much to be said about NVDA's long term potential when it comes to AI. The company has been investing heavily in this area, looking to machine learning and autonomous vehicles as future growth areas. InvestorPlace's Chris Lau has a good read on how AI and self-driving car tech could pay off for Nvidia stock in the long term. * 10 Battered Tech Stocks to Buy Now But I want to focus on gaming because that is the area that is going to hold Nvidia back over the next year. Nvidia Missed the Gaming Console Ramp-UpMicrosoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are releasing next-generation Xbox and Playstation game consoles in 2020. That is going to kick off a huge upgrade cycle, but it won't benefit NVDA. Advanced Micro Devices (NASDAQ:AMD) will be powering both of those consoles.The Nintendo Switch uses custom Nvidia silicon, but with the Switch still mid-cycle in its lifespan, an all-new version isn't expected any time soon. Nvidia stock is not going to see the sort of upside from Switch sales that it did when Nintendo's console first launched.Nvidia is also left in the cold on the most prominent experiment in video game streaming. Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google is launching its Stadia cloud game streaming service in November. Stadia is a double-blow against Nvidia.Subscribers will be able to play AAA PC video game titles on a wide range of devices without the need for a powerful gaming PC equipped with a graphics card. Instead, cloud data centers will do the heaving lifting, with custom AMD GPUs delivering 4K graphics at 60 fps (with 8k and 120 fps on the horizon).If Google's Stadia is a success, AMD will get orders for more of those custom GPUs. Nvidia will likely see the demand for graphics cards to power gaming PCs take a hit. Putting Together the Pieces for Nvidia StockIf you look at the two factors spiked out here, the somewhat puzzling analyst positions make sense. Why would do many analysts have NVDA rated as a Buy, yet have 12-month price target that has only around 3% upside? The next year doesn't have a lot of revenue growth potential for Nvidia. It's largely missing out on the next-generation game console cycle, it's missing out on the biggest cloud gaming initiative, and it could see its graphics card sales take a hit should cloud gaming take off.At the same time, its investment in AI and autonomous driving technology is seen as likely to pay off in a big way, but that payday is further in the future. Putting all the pieces together, it seems probable that NVDA stock is approaching a ceiling. Buying now, you are unlikely to see major gains over the next year. But if you intend to hold onto it -- with AI ramping up and autonomous cars inching closer to mainstream -- that NVDA investment will pay off in the long term. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Keep Nvidia Stock If You Have It, Just Don't Jump in Now appeared first on InvestorPlace.
GameStop (GME) shares have been sliding after the video game retailer reported disappointing Q2 earnings after the closing bell on Tuesday.
IBM is out with its newest mainframe - z15. Yahoo Finance sat down with Tom Rosamilia, the Senior Vice President of IBM Systems and Chairman of IBM North America to hear how it'll change the industry.
SunPower's (SPWR) solar solutions to be installed in a 1.6-megawatt solar project, which will be constructed at Sony Pictures' studio in Culver City.
Technically, we have yet to reach a point where the markets have entered bearish territory. Despite the Dow Jones Industrial Average shedding nearly 300 points to officially kick off September, the major indices are still up double digits. However, that might change soon, which is why you should consider contrarian investments like entertainment stocks to buy.Before we get into that, let's briefly discuss the current situation. President Donald Trump doubled down on his ongoing feud with China, promising to apply continued pressure. Moreover, on another geopolitical front, rogue Parliament members in the U.K. are prepared to delay Brexit, openly defying Prime Minister Boris Johnson's goal to leave the European Union. Unsurprisingly, gold and other precious metals swung higher.Under this circumstance, companies levered to the U.S.-China trade war or other geopolitical flash points will likely incur volatility. However, I believe that entertainment stocks to buy can provide air bubbles for otherwise beleaguered investors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPrimarily, if we do fall into a recession, demand for consumer goods will initially deflate. That said, people gravitate toward cheap distractions to keep them forging ahead during the troubles. And this isn't just my own anecdotal observation. Throughout both recent and distant history, entertainment stocks have played a vital but perhaps under-appreciated role in our economy. * 7 Best Tech Stocks to Buy Right Now For instance, the "golden age" of Hollywood sparked to life during the Great Depression. More recently during the Great Recession, the modern cineplex provided a similar kind of distraction from everyday struggles.Today, with the plethora of companies specializing in amusement, investors have many options. Here are eight entertainment stocks to buy. Sony (SNE)Source: George Dolgikh / Shutterstock.com For many years, Japanese consumer electronics giant Sony (NYSE:SNE) has hardly figured into consideration for stocks to buy. But in just the past 30 days, this sentiment has shifted notably. Since the first of August, SNE stock is up nearly 3%. It's not a great tally, until you consider that rival Apple (NASDAQ:AAPL) is down 1%.Now, it's true that both companies face very similar headwinds. Moreover, the U.S.-China trade war impacts them both. Primarily, Apple misses out on its historically robust Chinese iPhone sales, while China is an important trading partner to Japan. Still, I think there's reason to go contrarian with SNE stock: of course, I'm referring to Sony's ace up its sleeve, the iconic PlayStation.With the current-generation PlayStation 4 nearing the end of its product cycle, anticipation is sky-high for the PS5. While Sony is many things, it's the undisputed leader in video-game console popularity. The upcoming PS5 should produce similar results, even during a recession. Therefore, I'm liking my chances with SNE stock as one of the best entertainment stocks to buy. Microsoft (MSFT)Source: Shutterstock In my last write-up for Microsoft (NASDAQ:MSFT), I suggested that it wasn't quite time to panic on MSFT stock. Although I believe shares may incur some nearer-term volatility - after all, China represents the biggest revenue stream for Microsoft outside the U.S. - the company levers viable, relevant businesses. For one thing, its software solutions are unparalleled in their ubiquity and, in my opinion, usefulness.But another reason to take a shot on MSFT stock if the markets discount its price is gaming. Of course, everyone knows Microsoft as not only a software giant, but the creators of the now-iconic Xbox.I'm no video-game expert so don't take my word as gospel. However, in my many conversations, I've realized that some folks are PlayStation people, and others are Xbox loyalists. There might be some nationalistic rivalries too. The Xbox is America's answer to long-dominant Japanese video game consoles. * 7 "Boring" Stocks With Exciting Prospects Overall, I think this is very healthy longer-term for MSFT stock, especially as Microsoft gears up for its own next-gen Xbox release. Thus, I wouldn't ignore MSFT for your portfolio of entertainment stocks to buy. Alphabet (GOOG, GOOGL)Source: Castleski / Shutterstock.com Earlier this year, I wrote that Stadia, a new gaming platform from Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), won't appreciably impact Sony. For the most part, I still stand by that comment. While Sony has made some serious blunders, it doesn't fail in gaming. Therefore, I don't think Stadia will suddenly make GOOGL stock the king among entertainment stocks to buy.However, if we suffer a recession, Alphabet's gaming system suddenly looks more appealing. Unlike the top two console makers, Alphabet has a video game system without the physical element. All you need is a Google-branded controller and a relatively quick internet service. From there, subscribe to either a free or paid-membership service, and you're off and running. The convenience alone makes GOOGL stock appealing.Furthermore, Sony and Microsoft may release their nex-gen consoles at around $400. Prices higher than that have not worked out well for either company. But in a recession, even $400 might be a stretch. With Stadia's paid membership service costing only $10 a month, it might perform well in an economic downturn. Thus, GOOGL stock provides a nice hedge against SNE or MSFT if their consoles don't perform to expectations. Nintendo (NTDOY)Source: NintendoOne of the biggest reasons why the best entertainment stocks to buy have increased in popularity is their underlying products' broad appeal. For instance, today's video games are often incredibly realistic, and therefore gritty and intense. But for those gamers who just want to enjoy casual sessions, Nintendo (OTCMKTS:NTDOY) offers an appropriate solution.Most of the under-40 crowd grew up with various iterations of Nintendo gaming consoles. Historically, this has bolstered the case for NTDOY stock. But as gaming companies have increasingly turned toward realistic simulations, Nintendo has stuck true to its roots. Eschewing popular trends, they deliver quirky, usually family-friendly entertainment, and they've found and cemented a large loyal user base. * 7 Well-Positioned Oil Stocks in Today's Trading Environment But in an economic downturn, that user base might increase significantly. For instance, Nintendo doesn't just go against the grain in terms of content; they also do so in terms of pricing. As an example, their Nintendo Switch is priced at $200, while their portable system Nintendo 2DS is offered at $80. The company is the very definition of a cheap distraction, which is why I'm optimistic toward NTDOY stock. GameStop (GME)Source: Emil O / Shutterstock.com Recently, an analyst suggested that beleaguered video game retailer GameStop (NYSE:GME) was among the best stocks to buy. Normally, any discussion about going long GME stock is met with ridicule. But this particular analyst is none other than Michael Burry. He's the one who shorted the mortgage industry, and whose exploits were later chronicled in the book and film, "The Big Short."If you're curious about a more detailed analysis of Burry and GME stock, I recommend you read my take on the subject. In it, I present both the bull and bear case. However, in the end, I give Burry the benefit of the doubt. Essentially, if we fall into a recession, the public's emphasis on cheap entertainment may be enough for GME stock to overcome its myriad of problems.I'd also like to add another point that I didn't include in my write-up. In a possible recession, GameStop's core business of buying and selling used games would become incredibly relevant. That's because with video game downloads, you can't sell them after you're done and bored with them. With physical games, you have the ability to recoup at least some costs for your next purchase.I don't have the same confidence to put GME in my list of best stocks to buy. However, if you've got the risk tolerance, it's more than worth a gamble. Roku (ROKU)Source: Fozan Ns / Shutterstock.com On Aug. 23, I made perhaps an audacious statement: over-the-top streaming device manufacturer Roku (NASDAQ:ROKU) could really use a recession. Unlike most other companies and industries, ROKU stock is one of the most highly-regarded entertainment stocks to buy. Under an economic slump, more consumers will gravitate toward low-cost entertainment solutions, which obviously helps Roku.In many ways, this concept is playing out much better than I expected. Since my article published, ROKU stock is up nearly 14%. On the day when the Dow Jones lost nearly 300 points, ROKU gained nearly 4%. It is quite literally digital gold. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Moreover, the worse a possible recession gets, the more it supports the case for putting ROKU among the list of best stocks to buy. With their OTT solutions costing as low as $25, and without monthly fees, a traditional TV service makes no sense. Also, it's easy to add on premium streaming services if additional funds trickle in. Therefore, I'm bullish on ROKU stock, especially if we have a recession. AMC Entertainment (AMC)Source: QualityHD / Shutterstock.com Curiously to most folks, AMC Entertainment (NYSE:AMC) gained nearly 3% while the broader markets floundered. Under the most common assumption, AMC stock is irrelevant in the modern consumer landscape. When you can easily watch the latest shows and compelling original films from the comfort of your living room, why bother with the cineplex?Questions about the viability of the box office have lately plagued AMC stock. That said, I'm not surprised that shares popped up while the broader indices slipped down.For quite some time, I've consistently made the argument that the cineplex represents cheap entertainment. The movies offered respite during some of the absolute worst economic events in our nation's history. Even with the streaming revolution, AMC stock is still very relevant.Another factor that provides a tailwind for AMC is the wellness effect. According to Psychology Today, human civilizations evolved into cooperative and interdependent structures. In other words, just being around people can evoke some joy into our lives. And getting a laugh or thrill while you're at it? That's the under-appreciated reason why AMC belongs on your list of entertainment stocks to buy. World Wrestling Entertainment (WWE)Source: Shutterstock I've never really liked wrestling, and therefore, I had a dim view on World Wrestling Entertainment (NYSE:WWE). While it's true that since my last pessimistic article on WWE stock shares have tumbled, that was only because of one thing: I was a broken clock that finally got the time right.In reality and under a broader context, WWE stock has been a massive winner. Despite taking some losses lately, over the trailing five-year period, shares are up 366%. And I completely missed all of that, not giving the company and its services a fair shake.Well, I'm not entirely a convert. With WWE stock, I'm worried about the underlying company's demographic appeal, or lack thereof. It's not effectively reaching out to young people, and it's not exactly diverse either.That said, let's give credit where it's due: World Wrestling appeals to female viewers. It also features the fairer sex in high-profile events.Plus, WWE might receive a boost in viewership during a recession. Admittedly, seeing someone get hit by a flying chair is funny, if only based on schadenfreude. So with that, if you're looking for speculative entertainment stocks to buy, WWE might have something for you.As of this writing, Josh Enomoto is long SNE and AMC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 8 Entertainment Stocks to Brighten Up Life appeared first on InvestorPlace.
(Bloomberg) -- Typhoon Faxai hit Japan on Monday, forcing closures at factories owned by Nissan Motor Co. and Sony Corp., and disrupting morning commutes for thousands of residents.The season’s 15th typhoon made landfall in Chiba prefecture early in the morning. Since then it has been downgraded to a Category 1 storm and was hovering near Iwaki in Fukushima prefecture, heading northeast at about 30 kilometers per hour as of 12:00 p.m. local time, according to the Japan Meteorological Agency.Nissan said it halted operations at its Oppama and Yokohama factories due to flooding, while Sony said its plant making PlayStation 4 gaming consoles were closed due to power outage. About 820,000 customers were left without electricity in Tokyo and its neighboring prefectures, according to Tokyo Electric Power Co.’s website.Cosmo Energy Holdings Co. shut two crude distillation units at its Chiba refinery, while NTT Docomo Inc. said earlier its mobile services were disrupted in parts of the Kanto region. While train services were gradually being restored, some Tokyo-area services at East Japan Railway Co. remained suspended, with other routes experiencing delays. ANA Holdings Inc. canceled 55 domestic flights. Japan Airlines Co. has said it halted 41 flights, affecting 11,350 passengers.More than a dozen people have been injured, according to local reports.(Adds Nissan, Sony shutting factories)\--With assistance from Aaron Clark, Sophie Jackman and Aya Takada.To contact the reporters on this story: Kana Nishizawa in Tokyo at firstname.lastname@example.org;Shoko Oda in Tokyo at email@example.comTo contact the editor responsible for this story: Kazunori Takada at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Over the last several years, Advanced Micro Devices (NASDAQ:AMD) has achieved a remarkable turnaround, and AMD stock has followed comfortably along.Source: Sundry Photography / Shutterstock.com Long considered an afterthought to Intel's (NASDAQ:INTC) innovative leadership, the spirited semiconductor firm has been punching well above its weight. As a result, the AMD stock price over the trailing five-year period has gained an astonishing 646%.Much of that, of course, is due to the vision and extraordinary leadership of Dr. Lisa Su. It's no coincidence that the remarkable five-year turnaround in Advanced Micro Devices stock occurred almost entirely under her tenure. And on a more personal level, she's a hero for women in tech and for hard-working immigrants.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUndoubtedly, the combination of tangible and intangible factors have appealed to early speculators of AMD stock. But as Su's time as CEO heads toward the half-decade benchmark, AMD also finds itself at a crossroads. Can her magic strike twice in light of a vicious U.S.-China trade war and a possible looming recession?I'm sure many proponents believe it can, if only because Advanced Micro Device stock tends to have an emotional following. If you don't believe me, you can check out my inbox, which has a special place for nasty AMD-related messages. * 7 Stocks to Buy In a Flat Market But to be completely fair, the contrarian case for AMD isn't without fundamental merit. Even if we fall into a recession, the semiconductor firm has potentially viable revenue streams. For example, video gaming is a huge business. Moreover, during an economic downturn, people will place a premium for cheap entertainment as they did in the Great Depression and recession.Therefore, buying Advanced Micro Devices stock doesn't seem so crazy. Still, I'd be careful. Reality Weighs down AMD StockOn one hand, you really must hand it to Advanced Micro: they've been firing off compelling products and scaring their competition in the process. Their new graphics processors are designed to go head-to-head with the best that Nvidia (NASDAQ:NVDA) has to offer.But on the other hand, this turnaround wasn't cheap. While AMD can legitimately call itself an equal to Nvidia or Intel in terms of next-generation products, it can't do so financially. That perspective is heightened during an economic downturn.In a recession, "boring" metrics like stable, predictable earnings and consistently positive cash flow may win out. That augurs well for Nvidia, but not so much for Advanced Micro Devices stock.Plus, I'm not entirely convinced about the tech firm's ability to capture gaming revenue in a recession. Of course, AMD has a catalyst because Sony's (NYSE:SNE) upcoming PlayStation 5 uses AMD processors. However, I'm not sure if advanced gaming demand will support shares.As you probably know, "serious" gaming is an expensive affair. Contenders have no issue paying tens of thousands of dollars for customized gaming rigs. But will that demand stay robust during an economic slump? For patently understandable reasons, I doubt it.Instead, I see a risk from new video game competitors, such as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Although Alphabet is a tailwind for AMD stock, it may not stay that way indefinitely. If Stadia, Alphabet's gaming platform takes off, it might limit Advanced Micro Devices stock. That's because Stadia doesn't require a console to play, eliminating any revenue-making opportunities.Not only that, people who use video games as a distraction will probably elect low-cost means to get their thrills. This removes the whole point about competing with Nvidia on high-profile flagship processors. The Bottom Line on AMD StockNow, some of the above points are granular. But for me, the biggest reason I'm not gambling on AMD is probabilities. Shares have enjoyed monstrous returns in recent years. Given the fundamental headwinds we're all facing, it's unlikely that AMD will go against the grain again.Indeed, the markets are sending prospective buyers a clear signal: wait for your discounted opportunity in Advanced Micro Devices stock.In the first half of this year, the tech firm's equity gained nearly 69%. But since the beginning of July, shares are down nearly 1%.It's not the most convincing of moves. Plus, the overhang of a trade war and possibly deteriorating consumer sentiment makes AMD stock risky. After all, they invested heavily in category-leading premium products, but who'd want to buy them in a recession?As of this writing, Josh Enomoto is long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post At This Point, the Smart Move for AMD Stock Is to Wait appeared first on InvestorPlace.
Last year, the holidays failed to arrive for Activision Blizzard (NASDAQ:ATVI) investors. They watched the video game publisher's stock tumble 47% between the start of October and Christmas Eve.Source: Lauren Elisabeth / Shutterstock.com After sinking to two-year lows in February, ATVI stock has been clawing its way back, managing to eke out a 13% gain so far in 2019. But ATVI's chances at a sustained recovery lie with two of its most popular game franchises. The retro "World of Warcraft Classic" launched on Aug. 27, while "Call of Duty: Modern Warfare" goes on sale Oct. 25. * 7 Deeply Discounted Energy Stocks to Buy The two game launches are generating considerable buzz that has already given ATVI stock a boost. Analysts have a median 12-month price forecast for ATVI stock of $55, with estimates ranging as high as $68, along with a Strong Buy recommendation.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Past Year Has Been Rough on ATVI Stock InvestorsThe performance of ATVI stock over the past 12 months has tested the patience of many investors. For those who bought last fall, expecting the massive roll ATVI had been on for years to continue, it was especially painful. After starting 2013 at the $11 level, ATVI stock climbed relentlessly, hitting an all-time high of $83.39 on Oct. 2. Then the bottom fell out for ATVI."Call of Duty: Black Ops 4" launched on Oct. 12, setting digital sales records for game consoles, but failed to generate the numbers investors were expecting based on its adoption of the hugely popular "battle royale" concept from runaway hit "Fortnight." A miss on its Q3 earnings in November added to the rout and by the time markets closed on Dec. 31, Activision Blizzard stock was trading for $46.57 -- a 44% loss in just three months.But it hadn't hit rock bottom yet. That happened Feb. 11 when ATVI closed at $40.11, its lowest point in two years. The reasons for that drop were concerns about Q4 earnings combined with news the company was planning to lay off hundreds of employees.Since then, ATVI stock has had a bumpy ride, but the overall trend has been up. At this point, it has put together a 13% gain for 2019. In comparison, rival Electronic Arts (NASDAQ:EA) is up 22% in 2019. ATVI Stock Hopes for a WoW and COD BoostTwo of Activision Blizzard's most important game franchises have launches this fall. If they perform as expected, there is significant upside for ATVI stock.At the end of August, the company released "World of Warcraft Classic," a retro take on its popular WoW game that celebrates its 15th anniversary. So far the results have been positive -- the new WoW version set a launch day record of 1.1 million concurrent viewers on Amazon's (NASDAQ:AMZN) Twitch game streaming platform. WoW generates revenue through ongoing subscription revenue of $14.99 per month. If "World of Warcraft Classic" can rejuvenate subscriber levels (an estimated 5.5 million in 2018 compared to 12 million in 2010), the boost to ATVI's bottom line would be significant.On Oct. 25, the company is launching "Call of Duty: Modern Warfare." Early reviews have been glowing, raising hopes that the latest CoD release will eclipse last year's version. 2018's "Call of Duty: Black Ops 4" set a launch day digital sales record, but its $500 million launch weekend failed to improve on 2017 CoD launch numbers. That disappointed investors …In addition, the company recently announced it is expanding development teams for its popular Diablo and Overwatch franchises, as well as Candy Crush -- the ultra popular mobile game series that earned Activision Blizzard over $1.5 billion in micro transactions last year alone. Based on this fall's game lineup and the resources being committed to other key game franchises -- not to mention the 2020 launch of new game consoles from Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) -- ATVI is poised to leave a terrible 12 months behind. And Activision Blizzard stock is well-positioned for continued recovery.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Activision Blizzard Stock Set for a WoW and CoD-Fuelled Recovery appeared first on InvestorPlace.
For August, Advanced Micro Devices (NASDAQ:AMD) posted a return of about 3%. But of course, this performance masks the extreme volatility. August was actually a period when the AMD stock price chart looked more like a roller coaster!But this should not be a surprise. There were wide swings in the overall market. There were also negative headlines from the U.S.-China trade war, which saw the hiking of tariffs from both sides. Keep in mind that AMD has major ties to China. So any whiff of problems usually means that investors get worried.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut August's performance for Advanced Micro Devices stock does show that the company is still resilient. Actually, for the year so far, the shares are up a sizzling 70%!Then again, there are some important factors that should help keep up the momentum in the business and bolster AMD stock.So let's take a look: Long-Term MegatrendsFor a relatively small company - say compared to chip giants like Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO)- AMD has been able to effectively leverage its resources. * 7 of the Best Financial Stocks to Buy Now The result is that the company is targeting three mega-market opportunities. According to AMD's most recent investor presentation, they include PCs ($30 billion), immersive/gaming ($15 billion) and the datacenter ($29 billion).The good news is that the company is making significant headway in all of them. For example, in the gaming market, it is positioned nicely to benefit from the launch of new consoles from Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE).As for the data center, AMD has been snagging major customers win, such as with Twitter (NYSE:TWTR) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG). Both companies have agreed to adopt the Epyc chips for their servers. Consider that this technology is based on a sophisticated 7nm process that has shown to have higher performance and better energy efficiency compared to Intel chips.According to InvestorPlace.com's Vince Martin: "Still, from a very broad standpoint, the argument is simple: There's a lot of Intel market share that AMD can take. And that means there's a market opportunity worth multiples of the current AMD market capitalization." LeadershipIn 2014 when Lisa Su took the reigns as CEO of AMD, the company was in terrible shape. There was even buzz of a bankruptcy filing. But Su quickly struck a critical deal with China's Sugon Information Industry Co, which brought in an infusion of much-needed cash.She also outsourced production. Then once AMD was on a stronger financial footing, Su began to ramp up R&D on building world-class technologies. Because of all this, she was able to pull off one of tech's best turnarounds.Yet there are some concerns about Su. In August rumors started to swirl that she may move over to IBM (NYSE:IBM) to become an executive with the firm. If so, this would certainly be a big-time negative for AMD stock. Although, for now, Su has denied the rumors, tweeting: "Just for the record, zero truth to this rumor. I love AMD and the best is yet to come!" Innovation and AMD StockFor decades AMD's reputation was as a follower in terms of new technologies. But this is no longer the case. Now AMD has been pushing the envelope on innovation. During the past quarter, the company launched high performance CPUs (central processing unit) and GPUs (graphics processing units).There was also the signing of a multi-year agreement with Samsung, which involved the licensing of graphics technologies for mobile applications and smartphones.AMD is also making headway in the category of supercomputers. Note that the company is working with Cray (NASDAQ:CRAY), which is being merged with Hewlett Packard Enterprise (NYSE:HPE), to create the world's fastest computer.It will use EPYC CPUs along with Radeon GPUs. Interestingly enough, this venture is likely to lead to advancements in AI (Artificial Intelligence).Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 3 Reasons Now Is the Time to Be Bullish on AMD Stock appeared first on InvestorPlace.
Typically, a security that generates a 38% dividend yield means only one thing: run! And while that metric may seem like a fantasy, it's actually a very real narrative for GameStop (NYSE:GME). Beleaguered from a massive shift in the retail video game landscape, GameStop stock has never looked like a legitimate investment since the middle of this decade.Source: Shutterstock However, two major news items have breathed new life into GME stock. First, Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT) announced earlier this year that their next-generation gaming consoles will utilize physical discs. Now, this is old news. However, a second catalyst has forced many analysts to reconsider it in a new light.And that spark comes in the form of famed short-seller Michael Burry. Famously, Burry predicted last decade's sub-prime mortgage. Additionally, he put his money where his mouth was, profiting from the downfall. His exploits later inspired the film "The Big Short."InvestorPlace - Stock Market News, Stock Advice & Trading TipsUsually, movies about the financial markets draw snores. But like many audience members, I was engrossed not only by the story, but also the implications. Burry, played by Christian Bale, was a reclusive genius. However, people really didn't understand the latter attribute until they profited handsomely from his outrageous call. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off How many of us wished we had access to Burry and his unconventional approach to the markets? Well, now we do. Burry is going long GameStop stock.It's an intriguing contrarian play. To us, betting on GME stock makes as much sense as the idea of shorting the mortgage industry must have been prior to the bubble collapse.But is this genuinely good advice on GameStop stock, or has Burry's reputation preceded him? Why You Should Ignore Burry's Advice on GME StockBefore we get into the details, we should reiterate a general point: you should never invest in an equity just based on an advisor's prior success. Obviously, Burry scored big on his big short. But can lightning strike twice? Maybe it can, or maybe he was just lucky that first time.As far as I know, there's no sequel to "The Big Short."But specific to GameStop stock, the overriding reason why people are so bearish is because of the Amazon (NASDAQ:AMZN) effect; namely, gamers are increasingly gravitating toward the convenience of video game downloads.After all, why go through the hassle of driving to the store, waiting in line, and driving back home? Instead, you can just download your target game in the comfort of your own home.Furthermore, console developers are moving toward subscription models similar to Netflix (NASDAQ:NFLX). Rather than spending gobs of money for each new release, you pay a nominal fee monthly. Then, you have access to a much wider range of games than you would have buying them individually.And these aren't just talking points: they're negatively impacting the GameStop stock price. Just open a five-year chart and the debate is over. Why You Should Gamble on GameStop StockWhile GME stock seems like a far-fetched bet, I'm not going to dismiss that Burry is a genius. Plus, he might be onto something here.First, video game downloads aren't without their limitations. With today's data-intensive games, you've got to have super high-speed internet; otherwise, you're going to spend all day (or even night) to get them.Moreover, not all Americans have access to high-speed internet. In fact, one of the underlying issues with the T-Mobile US (NASDAQ:TMUS) and Sprint (NYSE:S) merger is the rural customer. Theoretically, a merger would provide rural internet users with a comprehensively more competent high-speed internet solution. But for now, they must make do with inferior service.Beyond that, high-speed internet is expensive, and some folks may not have the means to afford it, especially under a recession.This brings me to my second point. If we do have a recession, GameStop stock levers a critical advantage. In an economic downturn, customers will cut unnecessary expenditures. I'd call video game subscriptions unnecessary. But used physical games for half their new sticker price or better? That would fly very well, especially because recessions incentivize cheap entertainment.Additionally, we sometimes forget the fact that as technology improves, so too does their data and storage demands. There's a reason why Sony and Microsoft both elected physics disc formats for their upcoming consoles: next-gen games are extremely data-intensive, and that burden will only increase.For now, downloading such behemoths on the regular is too much. The Jury on BurryI nearly soiled myself when I saw the dividend yield for GME stock. This is about as desperate of a long play as you're going to find.However, Burry is in many ways a visionary. I think part of his thesis involves the concept that we're headed toward a recession. If that's true, consumer behaviors will necessarily change. And this change is what would drive the bull case for GameStop stock.Now, I'm not clear as to how long Burry intends to hold GME stock. But if you're looking for a nearer-term gamble, I believe the outside fundamentals are surprisingly positive.As of this writing, Josh Enomoto is long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off * 7 'Strong Buy' Stocks to Beat Volatility * 7 Mega-Cap Tech Stocks on a Rebound Now The post The Big Shortas Michael Burry Is Going Long GameStop Stock: Should You? appeared first on InvestorPlace.
PlayStation Plus Free Games for September 2019 will have players checking out a couple of single-player experiences.Source: George Dolgikh / Shutterstock.com Here are Sony's (NYSE:SNE) PlayStation Plus Free Games for September 2019. * Batman: Arkham Knight -- We start of this list with the conclusion to the Batman: Arkham series of video games. This game puts players in the role of the Dark Knight as he seeks to uncover the secret of the Arkham Knight. It will be available on the PlayStation 4 starting on Sept. 3. * Darksiders III -- This third-person action-adventure game has players taking control of Fury, one of the Four Horseman of the Apocalypse, as she hunts down the Seven Deadly Sins. The gameplay features some Metroidvania elements as well as other aspects that give it a Souls-like feel.While these are the PlayStation Plus Free Games for September, they aren't out quite yet. That means that there's still time for players to download the PlayStation Plus Free Games for the previous month. That includes the WipEout Omega Collection and Sniper Elite 4.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off If you double dip and own both a PlayStation 4 and an Xbox One, then you also have other games to look forward to this month. Microsoft (NASDAQ:MSFT) has also announced the free games it will be putting out for subscribers to its Xbox Live Gold membership in September. You can see what all games are available for it by following this link. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off * 7 'Strong Buy' Stocks to Beat Volatility * 7 Mega-Cap Tech Stocks on a Rebound Now As of this writing, William White did not hold a position in any of the aforementioned securities.The post PlayStation Plus Free Games for September 2019 appeared first on InvestorPlace.
The stock price of Nvidia (NASDAQ:NVDA), the premiere graphics-chip maker, has been choppy in recent weeks. In August, semiconductor stocks, including Nvidia stock, were among the hardest hit by the recent selloff.Source: michelmond / Shutterstock.com Despite the recent slide, it might still be too early to get back into NVDA stock. Its short-term risks make it a highly volatile investment. In other words, I recommend that investors wait for several weeks before buying shares. Second-Quarter Earnings Pushed Nvidia Stock HigherOn August 15, Nvidia reported its second quarter of fiscal 2020 earnings. Investors overall seemed pleased with the results: Nvidia stock gained 15% in the few days following the earnings announcement.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNvidia is a pioneering maker of graphics processing units for gaming and professional markets. NVDA sells two main products: graphics processing units (GPU) and Tegra processors. GPUs accelerate central processing units (CPUs), boosting the performance of video and graphics and improving computers' overall output. * 7 Tech Industry Dividend Stocks for Growth and Income Analysts are concerned about the recent slowdown in the chip sector coupled with worries over U.S.-China trade wars. However, globally there are important growth areas. These include artificial intelligence (AI), autonomous vehicles, 5G, as well as high-performance computing and gaming. These technologies depend on the bigger graphics processing capabilities of Nvidia, Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD). All three companies work hard to gain market share.During the quarter, Nvidia's top and bottom lines were up sequentially. NVDA's revenue increased 16.2% over the quarter but fell 17.4% year-over-year to $2.58 billion. Similarly, the adjusted earnings per share jumped 40.9% sequentially but fell 36.1% YOY to $1.24.In Q2, Wall Street was expecting Nvidia to report revenue of $2.55 billion and adjusted EPS of $1.15.Over the past several quarters, Nvidia stock has experienced a steep decline in revenues post-cryptocurrency bust. Therefore, the better-than-expected results inspired investor confidence.Nvidia stock is trading at a forward price-earnings ratio of almost 31. In comparison, Intel stock's forward PE stands at about 11\. Therefore, going forward, shareholders will want even stronger results so that the stock price warrants the rich valuation metric. NVDA Stock Faces Increasing Competition from AMDFor years, NVDA has been a leader in the competitive graphics-card market. However, in recent months, the battle for market share between Nvidia and AMD in that segment has intensified.Long regarded as the perennial runner-up to NVDA, AMD reported its Q2 earnings on July 24. The next day, Nvidia stock fell meaningfully, spooked by the results.For years, NVDA's chips had dominated PCs. However, a higher percentage of video games are being played on consoles now, and NVDA's GPUs aren't usually incorporated there. For example, Sony (NYSE:SNE) uses AMD's products in its consoles. For chip companies, gaming is mostly a seasonal business, so investors tend to look at year-over-year developments.In this quarter, AMD is expected to start selling its Navi graphics cards that utilize its 7-nanometer (nm) chips. They are touted as highly power efficient. AMD is also confident that its GPUs will take market share from NVDA in the video-game chip sector.Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Twitter (NASDAQ: TWTR) have also recently announced that they will be using AMD's second-generation EPYC server processors in their data centers. Their trust in AMD products has given AMD stock a big boost in recent weeks.Responding to AMD's new products, Nvidia's management has taken several steps. Specifically, it launched new "super" versions of its RTX GPR offerings. These new iterations are considerably faster than their predecessors. But NVDA is selling these new chips at the same prices as their predecessors, effectively undercutting their profitability.AMD has responded by reducing its own prices. That makes observers wonder if either chip maker will end up in good shape.This potentially sets up an all-or-nothing showdown between Nvidia and AMD. Where Nvidia Shares Are NowPrior to Q2 earnings, Nvidia stock closed at $148.77. It eventually jumped past $170, although shares slipped due to strong resistance there. At present, NVDA stock hovers around $160.Over the past year, shares have dropped around 42%. Moreover, they're quite volatile. The 52-week range for Nvidia stock has been $124.46 to $292.76.NVDA stock has likely incurred technical damage. In the coming weeks, I expect shares to move down toward $150 where it has significant support.It's important to remember that Nvidia is a momentum stock. Therefore, if you are worried about entry points, I'd suggest that you wait until NVDA builds a firm base between $145 and $165.If you already own Nvidia stock, you may consider hedging your position with monthly ATM covered calls. Such a strategy would enable you to benefit from an upside move and give some protection in case of profit-taking after the initial move up following the results.If the current trade tensions are swiftly resolved and the broader markets rally, Nvidia stock could easily continue its rebound. In that case, the technical charts would need to be reevaluated. The Bottom Line on NvidiaDespite the semiconductor industry's headwinds and cut-throat competition from AMD, there is strong demand for Nvidia's graphics processors. This is true not only in video games but also in data centers and workstations. Industry experts also regard NVDA as a top player in the AI chip space. Plus, its graphics chips are highly sought after for use in deep-learning applications.Nvidia is also exploring smart-city solutions, which exploit its proficiency in AI and data analytics. In other words, the company is somewhat shifting its focus from processors to providing the full technical backbone for AI ecosystems. As the use of AI and machine learning continues to rapidly grow, NVDA's AI business could expand exponentially.However, given how Nvidia shares have seesawed over the past year, I urge caution in the coming weeks. Many investors seem to be going into the last quarter of the year surrounded by much uncertainty about the broader markets and with somewhat subdued expectations. Therefore, it would not be surprising if many people hit the "sell" button in tech stocks in the nearer term.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post Nvidia Stock May Remain Under Pressure Short-Term appeared first on InvestorPlace.
Video game retailer GameStop (NYSE:GME) closed at $3.70 on Tuesday. That was a 3.14% loss, after a modest streak that saw GME stock climb from $3.21 on Aug. 15 to $3.82 at close on Monday.Source: Northfoto / Shutterstock.com The retailer is having a rough go of it, despite big moves this year that include hiring a new CEO, shuttering its ThinkGeek site and moving all those pop culture collectibles into GameStop stores to bolster sagging video game sales. GameStop is struggling to adapt to a world that is increasingly digital and trying to cut out the middle man.InvestorPlace - Stock Market News, Stock Advice & Trading Tips GameStop Is Struggling in a Digital WorldSales of physical copies of games are falling precipitously. In 2009, 80% of games sold were physical copies, but by 2018 that had dropped to just 17%. Adding to GME's misery, manufacturers and game publishers have been making moves to cut GameStop out of that digital business. Subscription services like Microsoft's (NASDAQ:MSFT) Xbox Game Pass that give subscribers unlimited digital access to a library of popular games are increasingly popular. No sales there. Sony (NYSE:SNE) announced earlier this year that it would no longer allow retailers including GameStop to sell digital versions of PlayStation 4 games. That means selling Sony PSN gift cards is the only remaining way for GME to capture any of those sales. And nothing is stopping Microsoft from following suit. * 7 Tech Industry Dividend Stocks for Growth and Income The increasing shift to digital delivery of games doesn't just hurt GameStop in the loss of the initial sale. Without a physical copy of the game, the company also loses out on the opportunity to have a player trade it in for reselling. Selling used video games has been a very lucrative line of business for GME.For example, this post from Polygon notes that in one quarter in 2016, pre-owned and value video games outsold both new video games and console hardware combined, and had a gross profit margin of 46.4% compared to 13.1% for game consoles and 24.3% for new video games. Console Sales Won't Save GME StockUnder normal circumstances, GameStop would be able to look to the holidays for a boost in sales and revenue. However, nothing about the past few years has been "normal" for GME. In 2007, the company reported record-setting results over the holidays, notching up $2.33 billion in sales -- a 34.7% increase over the year before. Video games were flying off the shelves (up 45% on the year) and the company reported seasonal shortages of popular game consoles. In December 2007, GameStop stock hit all-time record highs, breaking $62.In stark contrast, the new reality was showcased in the company's 2018 holiday sales report. The company sold $2.63 billion worth of merchandise, a 5% decrease from the previous year. While sales of new physical games copies were up 8.3%, sales of pre-owned hardware and games dropped 16.4% and console sales were down 6.1% compared to 2017.This year could be even worse. There are some big video game releases for the holiday season including a new Pokemon title and "Luigi's Mansion" for Nintendo's (OTCMKTS:NTDOY) Switch -- but with digital sales dominating, the benefit to GameStop could be limited. Speaking of Nintendo, the company will release a new Switch Lite console in September, but this less expensive version of the original isn't expected to cause a stampede. In fact console sales in general are shaping up to be a sore spot in GME's holiday sales. With Microsoft and Sony both releasing new consoles in 2020, sales of the current generation Xbox One and PlayStation 4 are taking a hit. Foreshadowing what's in store for GME, Advanced Micro Devices (NASDAQ:AMD) has already warned that sales of its semi-custom chips (primarily found in the Xbox One and PS4) will generate lower than expected revenue for the rest of the year. In other words, don't look to blockbuster console sales over the holidays to boost GameStop stock. The Bottom Line on GameStop StockGameStop stock has been a losing bet for years. Near $3.70, it's down 94% from the glory days of 2007, and 2019 hasn't seen much good news. GME is off nearly 77% since flirting with the $16 level in January.A new CEO and a focus on collectibles is helping a bit, but the biggest foreseeable boost to GME stock is likely to come in fall 2020 when next generation video game consoles are released. That should make for a solid holiday quarter that year, but then it's back to the usual for GameStop. And unfortunately for GME investors, the usual has been pretty dismal. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post GameStop Stock Is Down Once Again appeared first on InvestorPlace.