Latest news with #GameStopCorp
Yahoo
a day ago
- Business
- Yahoo
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 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 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-eps-surprise-chart | GameStop Corp. Quote 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 can see the complete list of today's Zacks #1 Rank stocks here. 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 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 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. 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. Image Source: Zacks Investment Research 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 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 Image Source: Zacks Investment Research 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. 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 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. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research 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
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
5 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
The Market Online
5 days ago
- Business
- The Market Online
GameStop stock takes a hit after big Bitcoin purchase
Video game retailer GameStop (NYSE:GME) saw its stock take a hit after making a big Bitcoin purchase this week Its board had unanimously approved an update to its investment policy to add Bitcoin as a treasury-reserve asset GameStop made good on this and purchased 4,710 Bitcoin worth roughly US$500 million GameStop stock (NYSE:GME) last traded at US$31.21 Video game retailer GameStop (NYSE:GME) saw its stock take a hit after making a big Bitcoin purchase this week. After its board unanimously approved an update to its investment policy to add Bitcoin as a treasury-reserve asset earlier this year, GameStop made good on this and purchased 4,710 Bitcoin worth roughly US$500 million earlier this week. Investors can likely find out more when GameStop releases its fiscal Q1 2025 results after the market closes on Tuesday, June 10, 2025. GameStop recently sold off its Canadian stores which re-branded back to the trusty old EB Games name. About GameStop Corp. GameStop Corp. is a U.S. video game, consumer electronics and services retailer. The company operates across Europe, Canada, Australia and the United States. It sells new and second-hand video game hardware, physical and digital video game software, and video game accessories. GameStop stock (NYSE:GME) closed 10.85 per cent lower on Wednesday at US$31.21. Since this time last year, it has gained 46.94 per cent. Join the discussion: Find out what everybody's saying about meme stocks on the GameStop Corp. Bullboards, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
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
