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GameStop Corp. (GME)

  • May. 19, 2014, 2:16 PM
    • GameStop (GME +1.2%) announces a relaunch of it digital distribution channel for PC games.
    • The company says the download process is now significantly easier for gamers.
    • A special promotion will by run by GameStop for two weeks in which select game downloads from major publishers will deeply discounted.
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  • May. 16, 2014, 2:43 PM
    • Though available only on the Xbox One/360 and PCs for now, Electronic Arts' (EA +2.1%) Titanfall was the bestselling game in U.S. physical retail channels for the second month in a row, per NPD's April numbers. Strong Titanfall sales have already fueled EA's big calendar Q1 beat.
    • Activision's (ATVI +0.7%) Call of Duty: Ghosts rebounded to #2 on NPD's list after coming in at #4 in March. Another Activision title, The Amazing Spider-Man 2, landed at #8.
    • Take-Two's (TTWO +0.9%) NBA 2K14 rose to #3 from #7 as the playoffs arrived. Grand Theft Auto V came in at #9.
    • Total physical retail game sales fell 10% Y/Y, as gamers direct more spending towards next-gen consoles (hardware sales rose 76%) and digital channels. But the figure represents an improvement from March's 27% decline.
    • One encouraging piece of data for the next-gen console cycle: NPD states PS4/Xbox One game sales are up 40% relative to PS3/Xbox 360 sales over their first 6 months of availability.
    • Game developers are ticking higher a couple days after selling off in response to Take-Two's soft calendar Q2 guidance, as is GameStop (GME +0.5%).
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  • May. 13, 2014, 2:13 PM
    • GameStop (GME +3%) trades higher after Microsoft announces it will offer a cheaper version of the Xbox One without the Kinect.
    • Store traffic at GameStop could get a mild boost if thrifty gamers take to the Kinect-free Xbox.
    • Another bullish note from Oppenheimer is also helping to boost sentiment. This time around the firm calls GameStop one of the "most under-appreciated EPS growth/upside stories" in the hardlines category. Shares are rated Outperform still.
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  • May. 2, 2014, 1:34 PM
    • Joel Greenblatt's screen looks to find stocks with high "earnings yield" - a high ratio of profits to enterprise value. Companies are further screened for a strong return on capital. When a stock scores well with both criteria, it's usually a good company being undervalued by investors.
    • For picking individual stocks, there are probably better methods, but as a group, Magic Formula names have vastly outperformed the broad market.
    • Although defense names have done well over the past couple of years, the Magic Formula continues to identify Northrop Grumman (NOC +0.2%), General Dynamics (GD +1.4%), and Raytheon (RTN +0.6%) as attractive. Firearm names Smith & Wesson (SWHC +0.8%) and Sturm Ruger (RGR +0.3%) also make the cut.
    • A number of videogame makers show up as well: Take-Two (TTWO +0.3%), Activision Blizzard (ATVI +0.2%), GameStop (GME +2.8%), and the struggling recent IPO King Digital (KING -0.3%).
    • Not too surprisingly, the Magic Formula also continues to like plenty of big-cap tech names: Cisco (CSCO -0.2%), CA, Inc. (CA -0.5%), Microsoft (MSFT -0.5%), Hewlett-Packard (HPQ -0.5%), and Apple (AAPL +0.1%).
    • Hardly market laggards, media names like Time Warner (TWX -0.8%), Viacom (VIA +1.4%), Omnicom Group (OMC), and Starz (STRZA +2.3%) also show up on the list, as do struggling multi-level marketers and for-profit education stocks: HLF, NUS, APOL, ESI, CPLA.
    • Punished by investors for not being as hot as they once were, Coach (COH +0.2%), Francesca' Holdings (FRAN +0.1%), and Gap (GPS -1.3%) are Magic Formula picks today.
  • Apr. 9, 2014, 6:55 PM
    • While much of the attention in recent weeks has been on high-flying momentum stocks falling back to earth, there’s also been a big rally among many of the stocks with largest short positions.
    • Rallies in heavily shorted stocks are being driven by hedge funds pulling back on all their stock positions, so as bullish positions in high-growth stocks have been ditched, short positions have been closed out as well.
    • Among the top 10 most shorted stocks, seven have rallied over the last month - with four up by double-digit percentages - even as the S&P 500 has dropped 0.8%: GameStop (GME, +11.5%), US Steel (X, +13.9%), Joy Global (JOY, +7.2%), ADT (ADT, -0.9%), VeriSign (VRSN, -8.6%), Essex Property Trust (ESS, +0.6%), Quest Diagnostics (DGX, +13.1%), Microchip Technology (MCHP, +2.8%), Western Union (WU, -1.9%), Frontier Communications (FTR, +13.6%).
  • Apr. 4, 2014, 7:07 AM
    • GameStop (GME) is upgraded by Bank of America to a Buy rating.
    • The investment firm sets a price objective of $56.
    • GME +1.9% premarket
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  • Mar. 28, 2014, 8:18 AM
    • Execs with GameStop (GME) disclosed during the firm's earnings call that the company plans to open 300 to 400 retail locations which will have a focus outside of games.
    • The specialty store concepts include Simply Mac, Apple specialty stores, Spring Mobile ATT dealer stores, and Aio Cricket AT&T prepaid stores.
    • The new stores will also sell electronics products such as wearable technology devices.
    • Previous: GameStop to reduce video game store count by 2%.
    • Earnings call transcript
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  • Mar. 27, 2014, 8:45 AM
    • GameStop (GME) reports comparable-store sales rose 7.8% in FQ4 as console launches drove traffic.
    • As expected, the company saw its mix of new video game hardware jump higher. On the software side, new video games accounted for 33% of sales and pre-owned titles made up 20.1% of sales. Profit on pre-owned titles was flat compared to a year ago while profit from new games was 13% lower.
    • GameStop announces it expects to lower its video game store count by approximately 2% this year.
    • FY14 EPS guidance is set at $3.40-$3.70 by GameStop vs. $3.76 consensus.
    • GME -5.4% premarket
  • Mar. 27, 2014, 8:38 AM
    • GameStop (GME): Q4 EPS of $1.90 misses by $0.03.
    • Revenue of $3.68B (+3.4% Y/Y) misses by $110M.
    • Press Release
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  • Mar. 27, 2014, 3:45 AM
    • CEO salaries at companies that generate over $8B in revenues rose 4.1% to a median $9.8M in 2013 as shareholder activism kept a lid on pay, a WSJ-commissioned survey shows.
    • While the increase was slightly greater than in 2012, it was well well under the median 25% shareholder return for the companies looked at.
    • Clarence Otis of Darden Restaurants (DRI), which is a focus of investor activism, saw his pay drop 24% even as returns increased 4%, and while the compensation of Cisco's (CSCO) John Chambers jumped 49%, returns soared 65%. GameStop's (GME) Paul Raines enjoyed a 92% boost in his salary even though returns rose just 5.4%.
    • Other relevant tickers: BBBY, ORCL, NKE, VIAB
  • Mar. 27, 2014, 12:05 AM
  • Mar. 26, 2014, 5:30 PM
  • Mar. 18, 2014, 9:13 AM
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  • Mar. 18, 2014, 9:13 AM
    • Shares of GameStop (GME) drop in early trading after Wal-Mart announces it will launch a used video game exchange program.
    • GameStop's used game business is vital to the company as it generates higher margins than the new game model. That could get trickier with the retail beast from Bentonville in the mix.
    • GME -5.5% premarket
    • Shares of Best Buy (BBY) are down 0.6% as the company also has a little skin in the used game market.
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  • Mar. 18, 2014, 7:05 AM
    • Shares of GameStop (GME) are on watch today after Wal-Mart announces a broad program that will enable customers to swap used video games for store credit.
    • Retail analysts note Wal-Mart is likely to top GameStop's current pricing as it enters the space.
  • Mar. 5, 2014, 9:50 AM
    • Shares of GameStop (GME +3.4%) are on the move after the company raises its dividend payout rate by 18%.
    • The company's CFO also offered assuring words on the stock buyback front.
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Company Description
Gamestop Corp is a multichannel video game retailer. It sells new and pre-owned video game hardware, physical and digital video game software, accessories, as well as PC entertainment software, new and pre-owned mobile and consumer electronics products.
Sector: Services
Country: United States