Latest news with #MichaelPachter
Business Insider
10 hours ago
- Business
- Business Insider
Meme Stock GameStop (GME) Is About to Report Q1 Earnings Tomorrow. Here Is What to Expect
Video game retailer GameStop (GME) is set to report its quarterly earnings results tomorrow, June 10. The stock has surged about 32% over the past three months, thanks to meme stock revival and the company's surprise investment in Bitcoin (BTC). This recent momentum comes even as concerns linger over the long-term outlook for GameStop's core gaming operations. Confident Investing Starts Here: Wall Street analysts expect the company to report earnings of $0.08 per share, versus a loss of $0.12 in the year-ago quarter. However, revenues are expected to decline by 15% from the year-ago quarter to $750 million, according to data from the TipRanks Forecast page. Recent Event Ahead of the Q1 2025 print, GameStop invested in Bitcoin, following a strategy similar to Michael Saylor's Strategy (MSTR), a software company that turned into a serial Bitcoin acquirer. In a late-May filing, GameStop revealed it had purchased 4,710 Bitcoins valued at $513 million. The acquisition marked GameStop's first Bitcoin purchase since it unveiled its plans in March to start investing in crypto. As earnings approach, investors will be watching closely for any updates on the company's digital strategy and sales trends in its retail segment. GME's Q4 Shows Profit Surprise In the last reported Q4 quarter, GameStop surprised with an earnings per share (EPS) of $0.30, far ahead of Wall Street's $0.08 estimate. The company posted a full-year profit of $131.3 million in 2024, a sharp turnaround from just $6.7 million the year before, mainly due to aggressive cost-cutting efforts. However, revenue dropped 28.5% year-over-year to $1.28 billion in Q4, missing analyst expectations of $1.48 billion. Full-year revenue came in at $3.82 billion, down from $5.27 billion in 2023. The company continues to see weakness in its core video game hardware and software segments. According to Main Street Data, GME's Hardware and Accessories segment has been on a downward trend, with recent quarters showing significant declines from earlier levels. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting an 11.05% move in either direction. Is GME Stock a Buy, Sell, or Hold? GameStop's fundamentals and unpredictable trading patterns have led many Wall Street analysts to take a step back from covering the stock. One of the few analysts still covering this stock is Michael Pachter of Wedbush, who continues to maintain a Sell rating. According to him, he sees more than 54% downside for GameStop based on his price target of $13.5 per share.
Yahoo
29-05-2025
- Business
- Yahoo
GameStop buys a half billion dollars' worth of Bitcoin, but investors aren't impressed—and shares are plummeting
says it has purchased roughly half a billion dollars' worth of Bitcoin. That sent share prices lower as investors shrugged off the latest business strategy. Analysts have questioned why stockholders should support this plan. GameStop has enacted its latest plan to stay afloat, but even investors in the meme stock are skeptical. The company, as it announced in March, has shifted its focus to Bitcoin, buying 4,710 of the tokens (worth roughly $500,000) on Wednesday. GameStop announced the purchase in a one-sentence press release on Twitter/X. Shares fell more than 10% on the news, and they didn't recover in early trading Thursday. Shares plunged another 5% as of 11:40 a.m. ET. The shift to Bitcoin has divided investors. GameStop has said it plans to buy $1.3 billion worth of the cryptocurrency, which is subject to extreme pricing volatility. The stock fell 23% following that announcement, but is currently trading at a higher price than it was prior to the strategic shift. The goal of the new investment strategy is to 'provide sufficient liquidity to meet the day-to-day financial obligations of the Company, and to optimize investment returns,' the company said in a March SEC filing. GameStop's core retail business has been suffering for years. The video game industry has increasingly turned to a digital distribution model, cutting retailers like GameStop out of the sales process. And since digital copies of games can't be traded in, that has also hurt the retailer's used-game business, which was its bread and butter for years. GameStop reported a 28% decrease in sales from 2023 to 2024, falling from $5.3 billion to $3.8 billion. GameStop has been closing stores and reducing its headcount. Retail investors, though, have buoyed the stock, a move that has baffled market watchers and analysts. 'GameStop is following the MicroStrategy playbook, but MicroStrategy currently trades at less then 2x the value of its Bitcoin holdings,' wrote Wedbush's Michael Pachter in a note to investors in March. 'We find it hard to understand why any investor would be pay more than 2x cash value for the potential for GameStop to convert that cash into Bitcoin, particularly since the same investors can invest in Bitcoin or a Bitcoin ETF themselves… GameStop has consistently been able to capitalize on the existence of 'greater fool' willing to pay more than twice its asset value for its shares—and so far, they've been right.' This story was originally featured on
Yahoo
07-05-2025
- Business
- Yahoo
2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 105% and 115%, According to Wall Street Analysts
Key Points Certain Wall Street analysts see triple-digit upside in artificial intelligence (AI) stocks AppLovin and MongoDB. AppLovin's superior AI recommendation engine Axon helped drive strong revenue growth in the fourth quarter. MongoDB believes AI is a generational shift that will boost demand for its document-oriented database platform. The S&P 500 (SNPINDEX: ^GSPC) has fallen 8% from its high year to date as tariffs imposed by President Trump have raised the probability of a U.S. recession. Nevertheless, the Wall Street analysts below see triple-digit upside in AppLovin (NASDAQ: APP) and MongoDB (NASDAQ: MDB). Michael Pachter at Wedbush in April set AppLovin with a target price of $650 per share. That implies 115% upside from its current share price of $302. Yun Kim at Loop Capital in March set MongoDB with a target price of $350 per share. That implies 105% upside from its current share price of $170. Here's what investors should know about these artificial intelligence stocks. AppLovin: 115% implied upside AppLovin develops ad tech software that enables developers to market and monetize their applications across mobile and connected TV campaigns. Advertising on its platform has traditionally focused on video games, but the company is expanding into other direct-to-consumer categories with its new e-commerce advertising product. AppLovin has put a great deal of effort into building its Axon recommendation engine. It began acquiring game studios several years ago to train the underlying machine learning models that optimize targeting, and has since released two major updates. The improvements made along the way have led to superior return on ad spend compared to other targeting solutions, according to Morgan Stanley. AppLovin reported strong fourth-quarter financial results. Revenue rose 44% to $1.4 billion and GAAP earnings soared 253% to $0.49 per diluted share. Management also said its nascent e-commerce advertising product hit a billion-dollar run rate in mere months, such that it should account for about 10% of revenue in 2025. CEO Adam Foroughi also highlighted successful pilots beyond direct-to-consumer brands. "This opens up a massive opportunity as there are over 10 million businesses worldwide who advertise online that could eventually use our platform profitably. By delivering incremental value, we position ourself as an engine for growth," he told analysts on the fourth-quarter earnings call. Despite recent attacks from short-sellers, Wall Street expects AppLovin's earnings to grow 45% in 2025. That makes the current valuation of 67 times earnings look reasonable, especially because AppLovin topped the consensus by an average of 26% in the last six quarters. Investors should consider buying a small position in this growth stock today, but triple-digit returns seem unlikely in the next year due to the uncertain economic environment.
Hindustan Times
02-05-2025
- Entertainment
- Hindustan Times
GTA 6 release delayed, company says it will now be out on...
The much-awaited video game Grand Theft Auto VI (GTA 6), which was earlier expected to release in 2025, will now come out in May 2026. The makers, Take-Two Interactive Software Inc., said they are giving the team more time to finish the game properly. This news caused the company's shares to drop by 10%, their biggest fall in over two years. GTA 6 has already missed a few earlier deadlines. It was supposed to be the biggest game release of 2025, but now fans will have to wait, as confirmed by Take-Two in a new statement, as cited by Bloomberg report. Take-Two CEO Strauss Zelnick said,'We support fully Rockstar Games taking additional time to realize their creative vision for Grand Theft Auto VI, which promises to be a groundbreaking, blockbuster entertainment experience that exceeds audience expectations.' The statement adds, 'While we take the movement of our titles seriously and appreciate the vast and deep global anticipation for Grand Theft Auto VI, we remain steadfast in our commitment to excellence.' The Rockstar site has shared the announcement of delay on their official site as well. The statement reads, 'Grand Theft Auto VI is now set to release on May 26, 2026. We are very sorry that this is later than you expected. The interest and excitement surrounding a new Grand Theft Auto has been truly humbling for our entire team. We want to thank you for your support and your patience as we work to finish the game.' The statement adds, 'With every game we have released, the goal has always been to try and exceed your expectations, and Grand Theft Auto VI is no exception. We hope you understand that we need this extra time to deliver at the level of quality you expect and deserve. We look forward to sharing more information with you soon.' Also Read: GTA 6 launch date announced and you will have to wait more GTA is very important for Take-Two's business. Grand Theft Auto V has sold around 210 million copies and is the second best-selling game ever, just after Minecraft. It has made about $9 billion since it came out, according to earlier reports. Even though GTA VI is delayed, Take-Two said they still expect strong sales in 2026 and 2027. They also have other big games coming this year, like Borderlands 4 and Mafia: The Old Country, which are expected to do well. Some experts say the delay won't hurt the company in the long term. Michael Pachter from Wedbush Securities said: 'When Grand Theft Auto VI comes in, it will easily be 50% profit. People are reacting negatively, but the delay means they're generating the same amount of money, just maybe half a year later.' So far, Rockstar Games has only shared a teaser trailer for GTA VI, showing the game is set in a made-up version of Miami. Reports say it will have two main characters, based on the criminal couple Bonnie and Clyde. Rockstar has also told its writers to avoid jokes that target transgender people and other minority groups — something that earlier games were often criticised for. GTA VI has been in development since 2014, but serious work began after Red Dead Redemption II was released in 2018. That game took a lot of effort and long hours. Since then, Rockstar has changed some top staff and promised better working conditions. A big leak in 2022, which showed early footage of the game, also caused delays. Matthew Ball, CEO of Epyllion, said there could be many reasons for the delay, such as needing more time to polish the game, adding more content, or changing the launch plan. He said Rockstar might also release GTA VI's online mode closer to the full game's launch this time.
Sky News
29-03-2025
- Automotive
- Sky News
Expert predicts GTA VI will cost $100 and believes gamers will snap it up without complaint
Grand Theft Auto VI is the most anticipated game of the year. The long-awaited sequel by developer Rockstar Games is expected in the autumn - 12 years on from the record-breaking GTA V. While gamers excitedly await its release, the industry itself is buzzing with anticipation over rumblings the base game could command a premium $100 (about £80) price point and still achieve colossal sales. Setting this precedent could lead to other game publishers wanting a slice of the action by increasing their own starting prices. However, the GTA series boasts two winning ingredients that some other games do not have - brand power and fan loyalty. Expert research analyst Michael Pachter told Sky News he believes Rockstar and parent company Take-Two Interactive Software will be able to charge $100 with little complaint. Mr Pachter, a managing director at US-based Wedbush Securities, highlighted the rising cost of entertainment since GTA V was released in September 2013. He said: "Realistically, video games are the only form of entertainment that hasn't kept up pricing with inflation. "Look at movie tickets, concerts, Disneyland, video on demand (VOD) - all have doubled." Mr Pachter said the key to "charging" more is to justify the value to the consumer. He explained: "I expect GTA VI to be fully integrated with GTA Online, and Rockstar can offer premium edition purchasers $100-worth of in-game items - currency, skins, vehicles, weapons, etc - as a trade-off for the higher price point. "The level of integration will make the in-game items more valuable, and I don't expect a lot of pushback. "I think $100 or so makes sense, and don't expect that we will ever see a $500 game." If history repeats itself, GTA Online will be the moneymaker. The persistent online world offers endless monetisation opportunities - with gamers enticed to splash out on new vehicles, weapons, properties, businesses and cosmetic upgrades. Mr Pachter said GTA VI's integration with its online offering provides an "excuse" for engaged players to spend more money. He added: "Some players will spend an additional $500 and most won't, but those who spend more than $100 will do so if they perceive there is value derived from the purchase." The GTA series - which was created in Dundee, Scotland - is one of the biggest franchises in the industry. GTA V became the fastest entertainment product in history to make $1bn (in its first three days) and has since sold more than 210 million copies worldwide. Developer Rockstar North (formerly DMA Design), based in Edinburgh, has achieved additional success by collaborating with fellow studio Rockstar San Diego on the Red Dead Redemption games. When GTA V made its debut, it launched on PlayStation 3 and Xbox 360. That was two consoles ago, with the new game set to arrive via PlayStation 5 and Xbox Series X/S. AAA (Triple-A) games - big budget, high-profile productions - are now taking longer to make as gamers demand seamless multiplayer experiences, cross-device gaming capabilities, visually impressive graphics, and fully immersive storylines. From the GTA VI trailer footage, players will be returning to the Miami-flavoured metropolis of Vice City in the fictional state of Leonida. The Bonnie and Clyde-style story is set to include the first playable female character in the series' history. GTA has always poked fun at American culture, with the nation's past decade of politics like something out of the game. GTA VI looks certain to continue the series' tradition of satire, but the trailer also shows that no expense has been spared in regards to bringing the sun-soaked streets of Vice City to life. The cost of creating a game can vary widely based on a multitude of factors, including the studio size, staff skill level, and development time. Given the size of Rockstar's workforce and the number of years the game has been in development, Mr Pachter believes the cost of GTA VI "is highly likely to be nearly $1bn". Mr Pachter said: "They spent this much time because they can, and the scope of the game is typically immense." Rockstar has so far remained tight-lipped over its budget and whether GTA VI is indeed the most expensive video game ever made. Not easy to share games in a digital download age Jenness Mitchell Scotland reporter @Jenster13 The gateway toy that sparked my love for gaming was the Tomytronic Shark Attack 3D device. It was the early 1980s and I'd received the binocular-style game for Christmas. I soon upgraded to the ZX Spectrum, and as the years have passed I've been fortunate to enjoy many of the consoles released via Nintendo, PlayStation and Xbox. Let me be clear, I'm a console gamer. If I had the spare money and patience, maybe I would build my own gaming PC – but I don't see that in my future. I love the GTA series and rank Rockstar Games' Red Dead Redemption, L.A. Noire, Bully (Canis Canem Edit) and The Warriors amongst my top favourites. Although the GTA games are meant for adults, I expect many youths across the UK will either want it on day one or will add it to their Christmas list. Rolling back to when I was in primary school, I was able to borrow ZX Spectrum games from the local library. My friends and I would share these around between ourselves, and in later years we would continue to swap our own Nintendo, PlayStation and Xbox games. This meant that someone like myself – who didn't come from money – was able to play a game I otherwise wouldn't have been able to afford. I highlight this because some of the newer consoles don't have a disc drive, and most games are now bought and downloaded digitally. I certainly don't begrudge the price of video games rising to ensure a good quality product, but by making it more difficult to share them with friends is a hindrance. With the cost of living crisis affecting households right across the UK, there may be parents who do not have the money to buy a new game on release or even while on sale for their children. Speaking from experience, some of my greatest gaming nights have been round at friends' houses watching them play their new game while having a little go myself. You see, that's the beauty of the gaming community – it's a supportive sharing space where we want to see everyone join in on the fun. After COVID all but wiped out trips to see a movie on the silver screen, film studios are now having to contend with the cost of living crisis and audiences preferring to wait for digital releases instead of spending money at the cinema. For those concerned about a $100 starting point for GTA VI, or indeed if it becomes the new standard for video games, Mr Pachter is advising to similarly wait it out. He said: "Like theatrical releases, game prices decline over time. "Rockstar can charge $100 for six months, can drop to $70 for six months, then drop periodically thereafter. "Nobody has to 'afford' $100; they all know they can wait." Even if GTA VI fans do wait it out for a cheaper price or for it to potentially drop via Xbox Games Pass, Mr Pachter is confident that will not affect Rockstar's overall success. He said: "There is no question they will sell 100 million copies - or more - eventually." So, while there is little doubt all eyes will be on GTA VI's launch, the lasting question is whether other studios will attempt to follow suit if we do indeed see a price rise. But a word to the wise, there are few games with a legacy as formidable as GTA and any price increase may turn out to be the exception rather than the rule. As career criminal and former bank robber Trevor Philips (GTA V character) nicely put it: "I said something nice, not expensive."
