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GameStop Turns a Profit, But Core Business Keeps Shrinking
MarketBeat· 2025-06-12 11:36
Core Insights - GameStop has achieved operating profitability, but its core business continues to decline, raising concerns about the sustainability of its turnaround efforts [2][4][6] - The company is now focused on generating profit from Bitcoin to maintain its operations without eroding shareholder value [3][8] Financial Performance - GameStop reported net revenue of $732.4 million, a nearly 17% decrease compared to the previous year, indicating a sequential decline and worse-than-expected results [4] - The collectibles segment grew by 15%, but this was offset by a 32% decrease in hardware and a 26% decline in software sales [5] - Despite producing profits for the quarter, the reduction in inventory and cash balance suggests that the core business is not as strong as the headline figures imply [6][7] Balance Sheet and Shareholder Value - The company has increased its cash balance, but this has come at the expense of shareholder value, with a 62% rise in share count over the last year [7] - GameStop's previous lack of debt is changing, as it appears to be following a strategy similar to that of other companies that have diluted value and increased debt for Bitcoin positions [8] Analyst Outlook - Analysts maintain a bearish outlook on GameStop, with a single rating of Sell and a price target of $13.50, indicating a potential 50% downside [9][10] - The stock has faced resistance at the $30 level, and there are predictions it could fall to $25 or lower before the next earnings report [12] Market Sentiment - Short interest remains high enough to cap market gains, and institutional ownership is low, providing weak support for the stock [11] - The potential rise in Bitcoin prices could positively impact GameStop shares, with forecasts suggesting Bitcoin could reach $125,000 to $145,000 by the end of the year [13]
The Other AI Chipmaker: Why Marvell's Dip Is a Buy
MarketBeat· 2025-06-12 11:06
Marvell Technology TodayMRVLMarvell Technology$68.24 -0.60 (-0.87%) 52-Week Range$47.09▼$127.48Dividend Yield0.35%Price Target$94.73Add to WatchlistIn the race to power artificial intelligence (AI), some of the most essential players operate just outside the spotlight. Marvell Technology NASDAQ: MRVL is a prime example. While its stock trades nearly 46% below its recent highs, the company itself is posting record-breaking financial results. This strange disconnect between Marvell's financial performance an ...
Is Consumer Discretionary a Dead End? These 3 Stocks Say No
MarketBeat· 2025-06-11 21:07
Conventional investor wisdom holds that the consumer discretionary sector performs best when the economy is thriving and customers have money to spend. Low interest rates and strong job growth may be other important indicators of a potential boom in consumer discretionary companies. With those things in mind, investors might expect that stocks in the consumer discretionary sector would be a non-starter in mid-2025. After all, a recent employment situation report from the U.S. Bureau of Labor Statistics show ...
Why a Trump-Musk Feud Could Mean Big Wins for AST SpaceMobile
MarketBeat· 2025-06-11 19:09
In mid-June 2025, space-based cellular broadband provider AST SpaceMobile Inc. NASDAQ: ASTS reached its highest share price in nearly 10 months, with analysts viewing the stock optimistically and calling for nearly 19% further upside potential. AST SpaceMobile TodayASTSAST SpaceMobile$36.16 +0.45 (+1.27%) 52-Week Range$9.32▼$39.08Price Target$42.40Add to WatchlistBut a five-day return of more than 38% could scare many investors off unless there's reason to believe it could be part of a longer-term rally. G ...
Nintendo Stock Near Highs—Will the Switch 2 Keep the Rally Alive?
MarketBeat· 2025-06-11 18:48
Parents beware. Christmas came early in 2025 as Nintendo Co., Ltd. OTCMKTS: NTDOY released its hotly anticipated Switch 2 handheld gaming console. It comes with a hefty price tag of $449.00. Nintendo TodayNTDOYNintendo$20.89 -0.06 (-0.29%) 52-Week Range$11.36▼$22.08Dividend Yield0.14%P/E Ratio46.42Add to WatchlistHowever, investors who bought NTDOY stock earlier this year may easily have enough profits to cover the premium price. The stock is up 43% in 2025 and is trading near its all-time high.Get Nintend ...
GitLab: Buy It Low While You Still Can—Higher Prices Are Coming
MarketBeat· 2025-06-11 16:13
GitLab TodayGTLBGitLab$44.12 -4.39 (-9.06%) 52-Week Range$37.90▼$74.18Price Target$65.38Add to WatchlistThere was absolutely nothing wrong with GitLab’s NASDAQ: GTLB Q1 earnings report and guidance. Nothing that is, except a wee bit of tepidness relative to analysts' relatively high bar. The sticking point, the cause for the 12% post-release price plunge, is that the guidance for Q2 revenue and the full year is slightly below the forecasts. By slight, that means the top end of the range aligns with the co ...
Dave & Buster's: Short-Covering Rally Signals Big Upside for PLAY
MarketBeat· 2025-06-11 15:32
Dave & Buster's Entertainment TodayPLAYDave & Buster's Entertainment$29.96 +4.10 (+15.83%) 52-Week Range$15.08▼$51.27P/E Ratio14.75Price Target$28.67Add to WatchlistDave & Buster's NASDAQ: PLAY FQ1 results and outlook for the year affirm that its CEO change and Back-to-Basics strategy were the right move. The critical detail is that this heavily shorted market is amid a short-covering rally and rebound that will result in a complete price reversal and new uptrend. The reason is that internal metrics show ...
RKLB Breakout Fails Near Highs: Should Investors Be Concerned?
MarketBeat· 2025-06-11 13:47
Core Viewpoint - Rocket Lab USA (RKLB) has experienced significant stock price growth, rising over 500% in the past year, driven by increased investor interest in space innovation and defense contracts [1][10]. Stock Performance - RKLB shares recently approached an all-time high, trading around $27.40, but faced a pullback after a failed breakout above $30 [1][4]. - Following a public feud between Elon Musk and Donald Trump, RKLB's stock surged over 6% in after-hours trading, but gains were quickly reversed as tensions eased [2][3]. Technical Analysis - The stock remains above major moving averages and key support levels, with a recent higher low at $25 acting as critical support [6][11]. - A consolidation in the $27 to $30 range could lead to a retest of $30 and potential new all-time highs [6][11]. Fundamental Strength - Rocket Lab's acquisition of Geost is a strategic move to enhance its position in the defense sector, praised by analysts for broadening its reach [8][10]. - The upcoming launch of the Neutron rocket, with a payload capacity of up to 13,000 kg, is expected to significantly enhance Rocket Lab's competitiveness in the satellite launch market [9][10]. Market Opportunities - The Neutron rocket positions Rocket Lab to bid for high-value government contracts, including the National Security Space Launch (NSSL) Phase 3 Lane 1 contracts, potentially worth up to $5.6 billion [10]. - Despite recent technical setbacks, the overall market trends and fundamentals suggest a strong long-term trajectory for Rocket Lab [11].
Tesla Stock: Why These 2 Downgrades Are Actually a Buy Signal
MarketBeat· 2025-06-11 13:03
Tesla TodayTSLATesla$326.09 +17.51 (+5.67%) 52-Week Range$167.41▼$488.54P/E Ratio159.85Price Target$293.67Add to WatchlistWhen a stock climbs 14% in just two trading sessions despite getting hit with not one but two analyst downgrades, the market is sending a clear message. Tesla Inc NASDAQ: TSLA has done exactly that this week, shrugging off downgrades from both Baird and Argus Research as if they were minor speed bumps on a highway. For growth-focused investors, this apparent disconnect between Wall Stre ...
Will Warner Bros. Discovery's Split Produce Double the Upside?
MarketBeat· 2025-06-11 12:06
Warner Bros. Discovery TodayWBDWarner Bros. Discovery$10.01 +0.48 (+5.04%) 52-Week Range$6.64▼$12.70Price Target$12.17Add to WatchlistRecent volatility in Warner Bros. Discovery NASDAQ: WBD stock is tied directly to a landmark strategic pivot. Since its formation in April 2022, the entertainment sector giant has traded at what many analysts have called a conglomerate discount, where the combined company's stock is valued for less than the sum of its individual parts. In a decisive move to address this, the ...