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GameStop Stock Falls 10% in 3 Months: Time to Buy, Hold or Sell?
ZACKS· 2025-07-23 15:20
Core Insights - GameStop Corp. (GME) has seen a significant decline in its stock price, dropping 10.4% over the past three months, underperforming the Zacks industry rally of 28.9% and the sector's growth of 16.8% [1][4][11] - The company's first-quarter fiscal 2025 results revealed a total net sales decline of 16.9% year over year to $732.4 million, primarily due to sharp drops in hardware and software sales [16][20] - GameStop is undergoing a strategic transformation to evolve from a traditional video game retailer to a technology-driven company, focusing on digital assets and collectibles [21][27] Financial Performance - Hardware and accessories sales fell 31.7% year over year to $345.3 million, while software sales decreased 26.7% to $175.6 million, indicating a shift in consumer preferences towards digital gaming [16][20] - U.S. revenues declined 12.9% to $537.5 million, with significant contractions in European markets, which plunged 47.4% to $74.8 million [17][20] - Despite cost-cutting measures, GameStop reported an operating loss of $10.8 million for the fiscal first quarter, highlighting ongoing profitability challenges [19][20] Strategic Initiatives - GameStop's collectibles business saw a remarkable growth of 54.6% year over year to $211.5 million, now representing 28.9% of total sales [22] - The company reduced adjusted selling, general and administrative (SG&A) expenses by nearly 25%, resulting in a gross profit increase of 3.4% to $252.8 million [23][24] - GameStop's cash position improved significantly, holding over $6.4 billion in cash and marketable securities, supported by a strong free cash flow of $189.6 million [26][27] Market Position - GameStop's stock trades at a forward 12-month price-to-sales (P/S) ratio of 3.31, lower than the industry's average of 3.75, indicating a discounted status relative to its peers [13][14] - The company has made a bold move into digital assets by acquiring 4,710 Bitcoin, signaling its commitment to embracing emerging technologies [27] - The Zacks Consensus Estimate for the current fiscal year has been raised to 75 cents a share, while the estimate for the next fiscal year has decreased to 36 cents [28][29]
X @Bloomberg
Bloomberg· 2025-07-22 17:50
Market Sentiment - GameStop stock is considered to be crypto-adjacent in spirit [1]
GameStop Recovery Hinges on US Strength as Global Woes Continue
ZACKS· 2025-07-22 16:41
Core Insights - GameStop Corp. reported mixed regional results for Q1 of fiscal 2025, with total net sales declining 16.9% year over year to $732.4 million, primarily due to ongoing restructuring and international market challenges [1][9]. U.S. Performance - The U.S. market remains the cornerstone of GameStop's business, generating net sales of $537.5 million, a decrease of 12.9% from the previous year. However, operational efficiency improvements led to a turnaround, resulting in operating income of $33.6 million compared to a loss of $25.3 million a year earlier [2][9]. - The U.S. now accounts for 73.4% of total sales, underscoring its significance to the company's overall performance [2]. International Operations - Internationally, performance was weak, with Canada experiencing a 10.3% decline in net sales to $38.2 million and an increased operating loss of $22.2 million, largely due to $18.3 million in impairment charges related to exiting the market [3]. - Europe faced significant challenges, with sales plummeting 47.4% to $74.8 million and losses widening to $16.8 million, impacted by $17.2 million in impairment costs and declining demand [4]. - Australia showed slight improvement, with sales rising 2.9% to $81.9 million, while operating losses narrowed to $5.4 million [4]. Strategic Focus - The results highlight the urgent need for GameStop to concentrate on profitable markets and consider exiting or restructuring underperforming ones. The U.S. turnaround provides a foundation, but ongoing international losses necessitate decisive actions to sustain recovery and adapt to market changes [5]. Stock Performance and Valuation - GameStop shares have declined 10.8% over the past three months, contrasting with the industry's growth of 30.7% [6]. - The company has underperformed compared to competitors like Best Buy and Microsoft, with Best Buy shares down 4.3% and Microsoft shares up 36.2% during the same period [7]. - GameStop trades at a forward price-to-sales ratio of 3.30X, slightly below the industry average of 3.74X, and has a Value Score of D [7]. Earnings Estimates - The Zacks Consensus Estimate for GameStop's fiscal 2025 earnings suggests a year-over-year increase of 127.3%, while the estimate for fiscal 2026 indicates a decline of 52%. Recent adjustments show an increase of 28 cents for fiscal 2025 and a decrease of 11 cents for fiscal 2026 [11].
GameStop: Clarity Brings Renewed Confusion for Meme Stock
MarketBeat· 2025-07-22 12:11
Core Viewpoint - GameStop's CEO Ryan Cohen attempted to clarify the company's direction, stating it is not pursuing a Bitcoin strategy, but failed to provide a coherent business plan, raising concerns about the company's sustainability [1] Financial Performance - GameStop's current stock price is $24.20, with a P/E ratio of 52.61 and a price target of $13.50, indicating a potential decline of 44.21% from the current price [2][9] - The collectibles business generated $211.5 million in FQ1, but this growth is overshadowed by a $254 million inventory reduction and declining hardware and software sales [5] - The company has over $2 billion in senior convertible debt, with no clear strategy for its utilization, raising concerns about financial health [13] Market Trends - The trading cards market is projected to grow significantly, with forecasts suggesting a market value in the low billions by 2025, presenting a potential opportunity for GameStop [3] - The overall industry is expected to grow at a solid single-digit pace, potentially exceeding $50 billion by the middle of the next decade [4] Investor Sentiment - Short interest in GameStop has increased since April, reaching multi-year highs in June, indicating bearish sentiment among investors [6] - Institutional support for GameStop is weak, with institutions owning less than 30% of the total shares and buying activity declining significantly in early Q3 [9][10] - The only analyst covering the stock has a bearish rating, forecasting a decline to $13.50, questioning the rationale for investing in GameStop for Bitcoin exposure [8]
Quantum BioPharma Makes Strategic Investment in GameStop Corp.
Globenewswire· 2025-07-22 11:00
Core Viewpoint - Quantum BioPharma Ltd. has made a strategic investment by purchasing 2,000 shares of GameStop Corp. to enhance shareholder value and combat market corruption [1][4]. Group 1: Strategic Investments - The acquisition of GameStop shares is part of Quantum BioPharma's strategy to deploy capital towards undervalued assets with strong fundamentals [4]. - Kevin Malone, Board Advisor, highlighted the value in GameStop, noting that the company holds 90% cash and marketable securities on its balance sheet [5]. Group 2: Advocacy Against Market Manipulation - Quantum BioPharma has appointed advocates like Kevin Malone and Terry Lynch to combat market corruption, particularly against naked short selling and stock manipulation [2]. - The company has filed an amended complaint seeking damages exceeding $700 million against CIBC World Markets and RBC Dominion Securities for alleged stock price manipulation through spoofing techniques [3]. Group 3: Shareholder Value Initiatives - The company is advancing its Multiple Sclerosis Patented New Chemical Entity asset and intends to declare a special dividend tied to potential litigation settlements [4]. - Quantum BioPharma has completed a debt settlement by issuing Class B shares, further demonstrating its commitment to prudent financial management [6]. Group 4: Company Overview - Quantum BioPharma is focused on developing innovative therapies for neurodegenerative disorders, with its lead compound, Lucid-MS, aimed at preventing myelin degradation in multiple sclerosis [8]. - The company retains a 20.11% ownership stake in Unbuzzd Wellness Inc. and has a royalty agreement for sales from its product unbuzzd™ [8].
Opendoor Is The New GameStop - Will It End Differently?
Seeking Alpha· 2025-07-21 16:26
Group 1 - The article discusses the potential longevity of a certain investment trend, questioning whether it is sustainable or merely a temporary phenomenon [1] - The Pragmatic Investor focuses on global macroeconomic factors, international equities, commodities, technology, and cryptocurrencies, aiming to assist investors in building diversified portfolios [1] - James Foord, an economist with a decade of experience in global market analysis, leads The Pragmatic Investor, emphasizing the importance of wealth preservation and growth through robust portfolio construction [1]
GameStop CEO turns Nintendo Switch 2 packaging disaster into astounding charity win
Fox Business· 2025-07-20 11:15
Core Insights - GameStop faced a significant public relations crisis during the launch of the Nintendo Switch 2 due to a packaging error, referred to as "Staplegate," where receipts were accidentally stapled to console boxes, damaging them. CEO Ryan Cohen turned this crisis into an opportunity by auctioning off a damaged console for $250,000, with proceeds benefiting Children's Miracle Network Hospitals [2][3]. Company Transformation - Since Ryan Cohen joined GameStop in 2021, the company has shifted its focus from gaming hardware and software to trading cards and collectibles, which is seen as a more sustainable business model. This transformation has led to consistent profitability, with the company generating profits every quarter [4][5]. - Cohen highlighted the drastic changes in the company's financial health, moving from deep losses and debt to a more stable position, emphasizing the progress made in a short time [5]. Market Position and Strategy - GameStop has been a target for short sellers, particularly during the volatility of the COVID-19 pandemic and the industry's shift towards digital distribution. Cohen expressed disdain for short selling, viewing it as betting against business success [8][9]. - The company is also exploring potential investments in Bitcoin as a hedge against inflation and global money printing, indicating a willingness to adapt to changing market conditions [6].
EXCLUSIVE: Video Game ETF CEO Says Switch 2 Is 'Blockbuster,' EA Gains From Sports, GameStop Doesn't Pass ETF Test
Benzinga· 2025-07-17 22:27
Core Insights - The Roundhill Video Games ETF NERD is experiencing significant growth in 2025, primarily driven by the successful launch of Nintendo's Switch 2 console [1][2]. Nintendo - The Switch 2 launched at a price of $449, which is $150 higher than the original model, yet it achieved remarkable sales, with 3.5 million units sold in the first four days, marking the fastest start for any console in Nintendo's history [2][3]. - Nintendo's management is projecting to ship 15 million consoles in the current fiscal year, which is expected to increase revenue by over 60% and operating profit by around 13% [3]. - Nintendo is the largest holding in the Roundhill Video Games ETF, comprising 12.1% of its assets, with a focus on monetizing intellectual property beyond traditional game sales [4]. Electronic Arts (EA) - EA's sports titles, particularly Madden and College Football, are significant revenue drivers, with expectations of a college basketball franchise potentially generating $300 million in bookings [7][8]. - The return of a college basketball game could conservatively sell four million titles, enhancing gamer engagement during off-seasons [8]. GameStop - GameStop is excluded from the Roundhill Video Games ETF due to its focus on tracking the Nasdaq CTA Global Video Games Software Index, which does not include physical retailers [9]. - GameStop's financial performance, characterized by double-digit revenue declines and volatility disconnected from fundamentals, further disqualifies it from ETF inclusion [10]. ETF Performance - The Roundhill Video Games ETF closed at $25.94, reflecting a year-to-date increase of 31.3% in 2025 and a 57.7% rise over the past year [10].
Gamestop: No More Memes, But The Trading Card Age Is Just Beginning (Surprising Rating Upgrade)
Seeking Alpha· 2025-07-17 21:19
Group 1 - GameStop (NYSE: GME) is recognized as a prominent "meme stock," but the current bull market has introduced a new set of meme stocks, leaving GME somewhat overlooked [1] - Julian Lin, a financial analyst, focuses on identifying undervalued companies with long-term growth potential, emphasizing strong balance sheets and management teams [1] - The investment group Best Of Breed Growth Stocks, led by Julian, aims to share positions in stocks with a high probability of outperforming the S&P 500, combining growth principles with strict valuation criteria [1]
GameStop (GME) Laps the Stock Market: Here's Why
ZACKS· 2025-07-16 22:46
GameStop (GME) closed at $23.68 in the latest trading session, marking a +1.98% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%. Prior to today's trading, shares of the video game retailer had gained 1% lagged the Consumer Discretionary sector's gain of 5.77% and the S&P 500's gain of 4.51%.Analysts and investors alike will be keeping a close eye ...