GameStop Isn't Dying
Vince Martin • 39 Comments
Vince Martin • 39 Comments
The Market Got It Right On GameStop (Eventually)
Vince Martin • 21 Comments
Vince Martin • 21 Comments
Wed, Oct. 19, 1:17 PM
- Barron's has introduced a tracking index of stocks favored by younger consumers.
- Though the combined performance on the group of 50 stocks smashed the returns of the S&P 500 over the last five years, this year it lags slightly so far.
- As expected, the price-earnings ratio of the Barron's Next 50 Index skews higher due to the focus on longer-term millennial growth.
- Some of the companies making the initial list are Amazon (NASDAQ:AMZN), Barnes & Noble Education (NYSE:BNED), Boston Beer (NYSE:SAM), Chipotle (NYSE:CMG), Etsy (NASDAQ:ETSY), GameStop (NYSE:GME), GoPro (NASDAQ:GPRO), GrubHub (NYSE:GRUB), Kate Spade (NYSE:KATE), Live Nation (NASDAQ:LIVE), Lululemon (NASDAQ:LULU), MasterCard (NYSE:MA), Match Group (NASDAQ:MTCH), Monster Beverage (NASDAQ:MNST), Shake Shack (NYSE:SHAK), Square (NYSE:SQ), and Yelp (NYSE:YELP).
- A millennial-focused ETF launched last spring, the Global X Millennial Thematic ETF (NASDAQ:MILN), has outperformed the S&P 500 Index over its brief history.
Fri, Oct. 14, 10:28 AM
- Sony (NYSE:SNE) began selling its PlayStation VR unit this week at a pricing point ($399) below the Facebook Oculus Rift and HTC Vive. The roll-out is being closely watched to see if the product ends up as a holiday favorite.
- "Anyone who buys [a PlayStation VR unit] in the next six months already owns a PlayStation 4, so it's not necessarily going to drive that many new console sales, but it certainly extends the brand," says Digital World Research CEO P.J. McNealy.
- "New content is steadily flowing in but we have yet to see the killer app that will be necessary to make VR mainstream. We remain optimistic for VR over the long-term for both games and enterprise," notes Macquarie Capital analyst Ben Schacter.
- Estimates of VR headset sales over the next year range from 1.4M (Goldman Sachs) to below 1M, although many industry watchers say one "killer" virtual reality game could drive up demand.
- On a very positive note, GameStop's (GME) COO told TheStreet that the company is sold out of the Sony VR product in most stores.
- There's also positive reviews out from Wired and TechRadar that could help win over some consumers.
Fri, Sep. 9, 9:35 AM
- A resounding bull call on GameStop (NYSE:GME) arrived this morning from Hilliard Lyons. Snippets from the analyst note are posted below.
- "We feel recent substantial declines in the stock price reflect an overly pessimistic view of the company’s near-term outlook. Management has navigated a challenging industry environment in a smart, pro-active manner, in our opinion."
- "Generation and allocation of cash flow are key positive factors, in our view, and could play a positive role in the year ahead."
- "We view the current 7.0x multiple on our estimate of expected forward earnings to be quite attractive."
- Shares are rated at Buy and assigned a price target of $33.
- GME is up 0.32% to $27.86 vs. a 52-week trading range of $24.33 to $47.62.
Fri, Aug. 26, 12:45 PM
Fri, Aug. 26, 9:59 AM
Fri, Aug. 26, 9:13 AM
Thu, Aug. 25, 5:33 PM
Thu, Aug. 25, 5:00 PM
- GameStop (NYSE:GME) reports same-store sales plunged 11% in Q2. Sales of new video game hardware fell to 33% Y/Y during the quarter.
- Revenue mix: New video game hardware $216.4M (13.3% of total), New video game software $382M (23.4%), Pre-owned and value video game products $543M (33.3%), Video game accessories $120M (7.3%), Digital $36M (2.2%), Mobile and consumer electronics $203M (13%), Collectibles $90M (5.5%).
- The company's gross profit rate rose 500 bps to 37.9% off the shift in mix.
- GameStop expects FQ3 comparable-store sales to fall in a range of -2% to +1%. Q3 EPS of $0.53-$0.58 is expected.
- Previously: GameStop EPS in-line, misses on revenue (Aug. 25)
- GME -6.44% AH to $30.09.
Thu, Aug. 25, 4:02 PM
Wed, Aug. 24, 5:35 PM
Tue, Aug. 23, 10:32 AM
- Select retail chains are higher after Best Buy sailed past profit estimates with its Q2 report.
- Best Buy said sales rose for home theater systems, major appliances, and some computing products.
- Conn's (CONN +1.5%), hhgregg (HGG +4.9%), Sears Hometown and Outlet Stores (SHOS +2.2%), and GameStop (GME +3%) are all higher.
- Previously: Best Buy beats by $0.14, beats on revenue (Aug. 23)
- Previously: Best Buy soars after profit impresses (Aug. 23)
Thu, Aug. 18, 3:48 PM
- Piper Jaffray backs an Overweight rating on GameStop (GME +1.1%) in front of the retailer's earnings report due out next week.
- The investment firm expects full-year guidance to be held steady by Gamestop with the software cycle setting up favorably.
- PJ keeps a $41 price target on GME, a level the stock hasn't traded at since last November.
Thu, Aug. 11, 7:13 AM
- Baird expects GameStop (NYSE:GME) to trade off after reporting weak numbers with its Q2 report due to be released on August 25 (consensus $1.73B revenue, $0.28 EPS).
- "We would be buyers on GME on any weakness ahead of the seasonal ramp, while longer-term diversification initiatives provide option value," advises analyst Colin Sebastian.
- Sebastian and team have GameStop rated at Outperform with a price target of $42 (40% upside).
Tue, Aug. 2, 7:35 PM
- GameStop's (GME -3.7%) purchase of three national cellular retailers has made it the biggest authorized retailer of AT&T (NYSE:T) mobility offerings.
- The game retailer bought Cellular World, Midwest Cellular and Red Skye Wireless, adding 507 stores. GameStop entered the mobile space just three years ago with a purchase of Spring Mobile.
- Now GameStop has 1,421 AT&T Mobility stores, and is also the biggest retail distributor of AT&T's prepaid brand Cricket Wireless, selling hardware and service through 70 Cricket brand stores and 3,400 GameStop locations.
- Mobile is "a key part of GameStop's diversification strategy," says Baird's Colin Sebastian, who reiterated an Outperform rating. "The announced store acquisitions are another step toward management's goal of generating 50% of operating earnings from nonphysical game sales by 2019, up from 25% in 2015."
- Baird's price target of $42 on GameStop implies nearly 44% upside from today's price.
Fri, Jul. 22, 5:52 AM
- Nintendo has “plenty of doubters”; short interest levels have almost tripled to a new yearly high, Markit says in a note.
- Short interest as percentage of free float is now at 2.57%. ADR short sellers are at 3.5x levels seen a week ago.
- Firm notes that GameStop shares, up 22% in the last month on the coattails of the Nintendo rally, haven't seen a similar rise in short demand.
- Still, GameStop short interest as percentage of free float is 19%, down from 50.8% in December.
Tue, Jul. 19, 7:37 AM