4.3500 +0.02 (0.46%)
After hours: 5:47PM EDT
|Bid||4.3000 x 2900|
|Ask||4.3100 x 3200|
|Day's Range||4.1300 - 4.3400|
|52 Week Range||3.1500 - 16.9000|
|Beta (3Y Monthly)||-0.07|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 27, 2019 - Dec 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.89|
GameStop (GME) is battling with soft sales owing to consumers' inclination toward buying games and gaming consoles. Nevertheless, the company is on track with its savings plan and strategic efforts.
GameStop (NYSE:GME) had another terrible week in a year where the retailer has had a lot of terrible weeks. A close look at GameStop stock looks like proof of the adage, "if you don't know what path to take, you already know where you're going"… which, in this case, is likely nowhere.Source: Shutterstock GME's second quarter earnings report on September 10 failed to meet already-low expectations. Not surprisingly, GME stock fell 10% the next day. For the year, GameStop stock is down 65% and over 70% since hitting its high for the year on January 18. Investors are Saying its 'Game Over'GME stock is cheap, despite all attempts at a rally. Even after its disappointing earnings report, GameStop stock has remained above its 20-day moving average with an RSI in the mid-50's. Unfortunately, the last time GME featured this combination of a stock price above its moving average and an RSI at this level was in January. The stock collapsed shortly thereafter.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd what tells an even grimmer story for GME stock is that there have been only five trading days this year that saw the stock trade with significant volume. On four of those five days, the volume has been predominantly selling volume with the lone exception seen on August 22. These Stories Seem to Have the Same EndingThe last of our local video stores closed recently. I had been in the store about four months early. The only reason I went there was to find a few titles that were not on Netflix (NASDAQ:NFLX). Walking through the store with cut rate prices and a shopper experience out of the 90s, I couldn't help but wonder how it was still in business. I guess my question got answered. * 10 Stocks to Sell in Market-Cursed September Now let's fast forward to last month and the release of Madden 20. I bought it for my son as an off-to-college gift. Ironically, we bought it at GameStop, but only because it was sold out at another store. We actually had to drive into the strip mall to check if it was still open. Walking into the GameStop, I had that deja vu all over again from the video store. A cluttered shopping experience and that "hmmm" of just how was it staying in business. Oh, and the clerk couldn't find me in their system. GME's Failing Business ModelThe move to digital made renting movies from a store, and the hardware required to play them, obsolete. The same thing is happening to GameStop. More gamers are downloading online titles directly to their console. The middleman is not necessary. True, the company will still have some relevance. The new gaming consoles arriving in 2020 will still have disk drives, ensuring that popular titles will still require a disk.But GameStop lost the exclusivity of its stores as retailers like Best Buy (NYSE:BBY), Walmart (NYSE:WMT) and Target (NYSE:TGT) entered the market. The company had a brief resurgence when it began selling high-margin, pre-owned video games. But sales of those games are also falling -- upending a strategy to be one of the few places that buy video games -- and the retailer is not going to be able to rely on new hardware sales, even with the new gaming consoles. Management Pledges a New PathFacing investor pressure, management has plans for GameStop to blaze a new path. On the post-earnings conference call, CEO George Sherman said the company was going to be embracing esports in a big way, saying he hopes the company's stores will become an experience for gamers. "We are committed to creating a social and cultural hub of gaming within each GameStop store, online and within the digital environment," he told analysts. * 10 Battered Tech Stocks to Buy Now I wonder if management is committed to that path. After the disappointing earnings report there was talk about "de-densifying" its footprint (i.e., up closing as many as 200 stores) and taking other efficiency measures, such as a stock buyback program and eliminating its dividend (which it did in June), as a path back to profitability. What's Next for GME Stock?I can see a situation where GameStop becomes a major sponsor for esports events, as Zacks suggested. It does have a strong cash position and as long as management is not using the cash on a dividend, why not? But I'm less sure if the "store as a hangout" model works.Gamers today are comfortable -- more comfortable in fact -- playing their friends or strangers online in the privacy of their own home. Having gamers go to a GameStop to watch other people compete, or even to game themselves, would be kind of like watching a movie at a video store. But that's not taking a bold new path, it's trying to landscape the path they're on, and that doesn't lead anywhere I want to touch as an investor.As of this writing, Chris Markoch 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 GameStop Stock is On a Path That Leads to Nowhere 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.
News about GameStop stores closing is spreading follow the release of the company's earnings report for its fiscal second quarter of 2019.Source: Emil O / Shutterstock.com GameStop (NYSE:GME) says that it will be closing down between 180 and 200 stores by the end of its fiscal year. These are under performing stores for the chain and it hopes to strengthen the company by closing them down.The plan for GameStop stores closing is part of a larger effort for GME. This is what the company is calling its GameStop Reboot. The goal is to shift the company to become a cultural center for gaming while also rationalizing its store count and build up a digital platform.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGameStop stores closing might not be a bad thing for the company. As more customers turn to online shopping and digital purchases, it's hard to argue that the chain needs to have 5,700 stores across the world. Especially when many of its stores are within a short distance of each other. * 10 Battered Tech Stocks to Buy Now "While we experienced sales declines across a number of our categories during the quarter, these trends are consistent with what we have historically observed towards the end of a hardware cycle," Jim Bell, CFO of GameStop, said in a statement. "We will continue to manage the underlying businesses to produce meaningful cash returns, while maintaining a strong balance sheet and investing responsibly in our strategic initiatives."GME stock was down 1% as of Thursday afternoon and is down 64% since the start of the year. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy As of this writing, William White did not hold a position in any of the aforementioned securities.The post Up to 200 GameStop Stores Closing in 2019 appeared first on InvestorPlace.
GameStop Corp. says that it's on track to close between 180 and 200 underperforming stores globally be the end of its fiscal year.
Video game retail chain GameStop is struggling, and as a result, it is in the process of closing hundreds of locations. In a quarterly earnings call with investors on Tuesday, Chief Financial Officer Jim Bell said the chain is on track to shutter 180 to 200 stores globally by the end of 2019. Notably, a part of that 11 percent comparable store sales decline is because of the 195 store closures since the second quarter of 2018.
GameStop Corp. (NYSE: GME) continues to have a difficult year after reporting a second-quarter earnings miss Tuesday. Credit Suisse analyst Seth Sigman said in a Wednesday note that the retailer still has plenty to prove, and it's going to take more than a new cycle of new consoles from Playstation and Xbox.
The outlook for videogame retailer GameStop continues to darken. Some investors still see reasons to think things can improve.
(Bloomberg) -- GameStop Corp. fell as much as 22% after the struggling video-game retailer posted a wider second-quarter loss and issued a forecast that was far below analysts’ estimates.Comparable-store sales, a key measure of performance, will slump in the low teens this year, GameStop said Tuesday, more than an earlier forecast of 5% to 10%.Shares of GameStop plunged as low as $3.97 in New York trading Wednesday, close to the low they hit in extended trading after the report Tuesday. Even after a recent rally, the stock was down 60% this year through Tuesday’s close.The retailer has lost business as gamers increasingly purchase titles online, and the once-lucrative business of selling used titles dried up. This year, the company forecasts profit of $1.15 to $1.30 a share, excluding some items. That compares with Wall Street estimates of $1.57.Last year, GameStop’s board reversed course on a decision to diversify into mobile-phone sales, unloading a chain of stores for $700 million. The company’s new chief executive officer, George Sherman, has promised to refocus on the core video-game business through such steps as redesigning the website and sponsoring esports events in stores. He joined the company in April.GameStop eliminated its dividend in June and renewed its focus on cost controls. Savings from expense reductions could add as much as $200 million annually, twice original projections, GameStop said. The company eliminated 14% of its corporate staff last month.Management has sought to bolster the stock through share repurchases, including a tender for 12 million shares in July at $5.20 each. The Grapevine, Texas-based retailer said it has about $237 million remaining under its existing buyback authorization.(Updates with shares in third paragraph.)To contact the reporter on this story: Christopher Palmeri in Los Angeles at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
GameStop stock is trading lower after yet another disappointing quarter. However, GME stock is holding a key level of support.
Stocks finish higher after China says it will allow some exemptions to additional tariffs on U.S. imports as the two side prepare to restart trade talks.
U.S. stock futures rose slightly after China says it will allow some exemptions to additional tariffs on U.S. imports; Apple bets big on camera improvements in its new iPhone 11; GameStop and Dave & Buster's sink on weak guidance; GE to give up majority control of Baker Hughes.
GameStop shares plunged Wednesday after the video game retailer posted a wider-than-expected second quarter loss, and lowered it full-year profit guidance, as gamers put off new console purchases in advance of new PS4 and Xbox releases.
Videogame retailer, GameStop, posted a wider loss than expected and weak revenue in its second quarter earnings report. It also slashed its sales forecast for the rest of 2019. Yahoo Finance's Dan Roberts, Heidi Chung and Kristin Myers discuss.
Shares tumbling after the company reported 2nd quarter earnings and sales that missed expectations. Gamestop also lowered its same-store sales forecast. Yahoo Finance's Ines Ferre joins Akiko Fujita to discuss.
Disney, AT&T, GameStop, Amazon, Purdue Pharma and Charles Schwab are the companies to watch.