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, Dec. 7, 7:44 AM
- Loop Capital picks out some favorites in the retail sector.
- The boutique investment firm assigns new Buy ratings to Best Buy (NYSE:BBY), Big Lots (NYSE:BIG), Five Below (NASDAQ:FIVE), and GameStop (NYSE:GME).
- Loop price targets: BBY $58 (+24% upside), BIG $64 (+18% upside), FIVE $64 (+48% upside), GME $32 (+28% upside).
Tue, Nov. 29, 10:01 AM
Mon, Nov. 28, 8:33 AM
- Black Friday weekend channel checks from investment firms are still pouring in. A few tidbits are posted below.
- Wells Fargo: Lululemon (NASDAQ:LULU) was a traffic outperformer, while Calvin Klein (NYSE:PVH) and Carter's (NYSE:CRI) held the line on pricing amid a promotional atmosphere.
- Wedbush: High-profile video games were discounted more than last year. Keep an eye out on GameStop (NYSE:GME), Activision Blizzard (NASDAQ:ATVI), Take-Two (NASDAQ:TTWO) and Electronic Arts (NASDAQ:EA).
- Fung Global Retail & Technology: Shoes (FL, FINL) were identified as a hot seller, while jewelry (NYSE:SIG) sales were down.
- Jefferies: Unexpected strength for the UGG brand (NASDAQ:DECK) and Gap was observed. Demand for Michael Kors (NYSE:KORS) and Coach (NYSE:COH) handbags appeared soft.
- Previously: Black Friday wrap: Records fall, retail winners and losers (Nov. 25)
- Source: Bloomberg.
Tue, Nov. 22, 4:13 PM
- GameStop (NYSE:GME) reports same-store sales fell 6.5% in Q3.
- The company says it saw weak demand in the video game category over the last few weeks in October.
- New hardware sales fell 21% and new software sales declined by 9% during the quarter.
- GameStop expects Q4 EPS of $2.23-$2.38 vs. $2.37 consensus.
- GME -0.87% AH to $23.90.
Tue, Nov. 22, 4:11 PM
Mon, Nov. 21, 5:35 PM
Wed, Nov. 2, 10:19 AM
- GameStop (GME -11.8%) releases some Q3 numbers early and updates on full year guidance.
- GameStop expects to report Q3 revenue of ~$2.0B vs. $2.08B consensus.
- Comparable store sales are anticipated to be -7.0% to -6.0% for the quarter.
- Q3 EPS of $0.45 to $0.49 is forecast vs. $0.56 consensus.
- "Our expectation was that the new titles released in October would provide a catalyst for new software sales, but despite gaining market share, the titles underperformed our forecasted sales," says CEO Paul Raines.
- GameStop revises its full year outlook to an EPS view of $3.65 to $3.80 and a comparable store sales forecast of -9.5% to -6.5%.
- GameStop will release full results on November 22.
- Source: Press Release
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