Latest news with #GME
Globe and Mail
2 days ago
- Business
- Globe and Mail
Should GameStop Stock Be in Your Portfolio Pre-Q1 Earnings?
As GameStop Corp. GME prepares to unveil its first-quarter fiscal 2025 earnings results on June 10 after market close, investors face an important decision: Should they buy the stock now or hold their current positions? With earnings expectations and market conditions in mind, it is crucial to evaluate key factors influencing GameStop's performance and whether the stock offers an attractive entry point ahead of its earnings report. GameStop is in the midst of a strategic transformation, pivoting toward a more digital-focused business model. By placing greater emphasis on e-commerce and digital gaming, the company is working to align itself with shifting consumer behaviors and the evolving retail landscape. The Zacks Consensus Estimate for first-quarter revenues stands at $750 million, which indicates a decrease of 16% from the prior-year reported figure. On the earnings front, the consensus estimate has been unchanged at 8 cents per share over the past 30 days, implying a 166.7% year-over-year upsurge. Image Source: Zacks Investment Research GameStop has a trailing four-quarter earnings surprise of 137.8%, on average. In the last reported quarter, this Grapevine, TX-based company surpassed the Zacks Consensus Estimate by a margin of 233.3%. (See the Zacks Earnings Calendar to stay ahead of market-making news.) GameStop Corp. Price, Consensus and EPS Surprise GameStop Corp. price-consensus-eps-surprise-chart | GameStop Corp. Quote What the Zacks Model Predicts About GME's Q1 Earnings As investors prepare for GameStop's first-quarter results, a question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for GameStop this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here. GameStop has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today's Zacks #1 Rank stocks here. GameStop: Key Factors at Play GME's fiscal first-quarter results are likely to reflect the dual nature of its ongoing transformation alongside persistent challenges in its legacy business. The company has been growing its presence in categories like collectibles, which offer higher margins and are less sensitive to industry cycles. This move helps reduce reliance on gaming hardware and software. In parallel, GameStop has continued to invest in its logistics capabilities and customer experience while exploring digital ventures, including NFTs and blockchain-based projects. GameStop has also demonstrated a clear shift toward operational discipline by streamlining its cost structure, optimizing its store footprint and focusing on profitability. The company made decisive progress in its international restructuring efforts, pursuing the sale of its operations in France and Canada to allocate resources to its core, higher-return operations. These factors are expected to have had favorable impacts on the bottom line. On the challenging side, the fiscal first-quarter results are likely to reflect continued declines in legacy revenue segments, particularly in Hardware & Accessories, and Software. These categories have been under pressure due to shifting consumer behavior favoring digital downloads, cloud-based gaming and subscription services. GME's dependence on physical products in a rapidly digitizing industry remains a vulnerability, and this is likely to have weighed on the top line. GME Takes the Lead in Market Rally GameStop has witnessed an impressive increase in its stock price over the past month. Closing last Friday's trading session at $29.80, the stock has rallied 12%, outpacing the industry 's rise of 4.8%. GME has outperformed its competitors, including Best Buy Co., Inc. BBY, Microsoft Corporation MSFT and Sony Group Corporation SONY. Shares of Microsoft and Sony have risen 5.5% and 4.5%, respectively, while shares of Best Buy have declined 2% over the same period. Does GameStop Qualify as a Value Stock? From a valuation standpoint, GME currently trades at a premium relative to its industry peers. The company's forward 12-month price-to-sales (P/S) ratio is 4.10, higher than the industry average of 3.22 and the sector's average of 2.14. The stock is also trading above its median P/S level of 2.92, observed over the past year. This elevated multiple underscores the market's continued willingness to pay a premium for the stock, likely driven more by sentiment than fundamentals. GameStop is trading at a premium to Best Buy (with a forward 12-month P/E ratio of 0.34) and Sony (1.87) but at a discount to Microsoft (11.02). GME Valuation vs. Industry Buy GameStop Now or Wait for a More Attractive Entry Point? GME's focus on streamlining costs, embracing a digital-first strategy, and expanding into higher-margin areas like collectibles signals a move toward greater sustainability. While its premium valuation may raise caution, the evolving business model and potential for long-term growth suggest an upside. Current investors may consider holding their positions, while prospective investors may wait for post-earnings clarity or a more favorable entry point. Should GME Be in Your Portfolio Pre-Q1 Earnings? Given GameStop's ongoing transformation and operational improvements, the stock presents an intriguing but speculative opportunity ahead of its Q1 earnings results. While initiatives in collectibles, digital ventures and cost optimization signal progress toward long-term stability, the company's core business remains vulnerable to industry shifts and digital disruption. The recent rally suggests heightened investor enthusiasm, but with valuation already running ahead of fundamentals and no clear earnings beat predicted, a cautious stance may be warranted. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report GameStop Corp. (GME): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Why GameStop Corp. (GME) Went Down On Wednesday
We recently published a list of . In this article, we are going to take a look at where GameStop Corp. (NYSE:GME) stands against other worst-performing stocks. GameStop Corp. declined by 10.85 percent on Wednesday to finish at $31.21 apiece as investors resorted to profit-taking following three consecutive days of rally, while repositioning portfolios after pulling the trigger to buy $500 million of Bitcoins. In a statement, GameStop Corp. (NYSE:GME) said it purchased 4,710 Bitcoins as it looked to other industries to grow its business. It can be learned that GameStop Corp. (NYSE:GME) struggled to remain relevant amid the shifting consumer behavior in the gaming industry, pivoting to digital gaming purchases from physical ones. A gamer playing a game on one of the specialty retail company's gaming platforms. Meanwhile, the $500 million forms part of the company's $1.3 billion Bitcoin purchase program, an amount it planned to raise from offering convertible senior notes. It can be learned that the gaming company had already ventured into cryptocurrency in 2022 with the establishment of a now-defunct cryptocurrency wallet that sent its share prices skyrocketing for days after the launch. Overall, GME ranks 5th on our list of worst-performing stocks. While we acknowledge the potential of GME our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GME and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
GameStop Corp. (GME) Slides as Investors React to $500 Million Bitcoin Purchase
GameStop Corp. (NYSE:GME) announced on Wednesday that it has officially purchased 4,710 bitcoins, valued at over $512 million, marking the company's first move into cryptocurrency. The purchase mirrors a strategy popularized by MicroStrategy and represents the video game retailer's shift toward digital asset investment. The acquisition was made at an average price of $108,837 per bitcoin. GameStop Corp. (NYSE:GME) had initially signaled its interest in adding crypto to its balance sheet earlier this year, with CNBC reporting the plan in February. The company later confirmed in March that there was no cap on how much bitcoin it might acquire. Despite the scale of the investment, GameStop Corp. (NYSE:GME) shares fell by 10.9% on Wednesday. This decline came after the company revealed it would be moving away from its traditional video game retail business to focus more on cryptocurrencies. According to a March SEC filing, GameStop aims to raise $1.3 billion through convertible notes as part of the shift. The filing noted that the strategy is designed to maintain liquidity for daily operations while seeking higher investment returns. Vitaliy Shtyrkin, chief product officer at crypto payment processor B2BINPAY, believes that Bitcoin might not be the perfect solution GameStop expects. He pointed out that Bitcoin's well-known price swings, which attract Strategy investors, bring additional risks for GameStop's investors. He also noted that the company's stock is already struggling due to falling video game sales. He made the following comment: "Bitcoin is exciting for a loyal investor base, but it distracts from core fundamentals: if crypto prices drop, GameStop may easily end up in a double-bind." GME has surged by nearly 2% since the start of 2025. While we acknowledge the potential of GME to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GME and that has 100x upside potential, check out our report about this cheapest AI stock. READ MORE: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
GameStop Purchases Over $500M Worth of Bitcoin
Video game retailer GameStop (GME) has purchased 4,710 bitcoin, worth nearly $513 million at the time of writing. GameStop announced the purchase on X on Wednesday but did not offer further details about when the BTC were acquired or the price paid. The Grapevine, Texas-based company revealed its plans to pursue a bitcoin treasury strategy in March, offering $1.3 billion in debt to raise the funds for BTC acquisition. The shares of GME rose as much as 6.6% in U.S. pre-market trading on the news, but the stock promptly dumped in early trading, falling around 10% to about $31.50. With GameStop's BTC purchase rumored to be imminent for several weeks, the GME slide may be a "sell the news" event. The selloff may haver been exacerbated by a dip in BTC's price which fell from around $109,000 to around $107,300 during the ET morning. UPDATE (May 28, 15:25 UTC): Adds additional info and context on GME's price movement.
Globe and Mail
7 days ago
- Business
- Globe and Mail
GameStop Just Bought More Than $500 Million of Bitcoin. How Should You Play GME Stock Here?
GameStop (GME) shares are down more than 7% on Wednesday after the world's largest video game retailer announced its first investment in Bitcoin (BTCUSD). The gaming merchandise specialist has spent some $500 million to load up on 4,710 BTC in total, its press release revealed on Wednesday. GameStop stock has been in a sharp uptrend over the past two months. So, despite today's plunge, it's up roughly 50% versus its year-to-date low. Why Is GameStop Stock Slipping on Wednesday? Investors are bailing on GME shares perhaps because the retailer's crypto strategy seemingly differs from the one that's generated exceptional returns for MicroStrategy (MSTR). MSTR's immensely successful crypto strategy was built over time. The business intelligence firm accumulated BTC at lower prices now strategically adds to its position. In contrast, GameStop is entering the Bitcoin market at an already elevated price of about $107,000, which raises concerns that it may fail to benefit from the pivot as much as MicroStrategy did. Additionally, the inherent volatility of the crypto market may be making investors nervous, adding to the decline in the GameStop stock price on Wednesday. Should You Buy GME Shares at Current Levels? GameStop stock remains a high-risk investment for the back half of this year as it's majority owned by retail investors, which makes it relatively more susceptible to volatility. Plus, the NYSE-listed firm is currently going for about 70 times its estimated earnings for 2025. Top it off with continued weakness in its core retail business amidst a global shift to digital gaming – and you have a business that's struggling with a lack of clear strategy for future growth. Wall Street's View on GameStop GME shares are not particularly popular among Wall Street analyst. The only analyst that covers GameStop has a ' Strong Sell ' rating on it with a price target of $13.50, which translates to potential downside of more than 50% from current levels.
