GameStop's Results Don't Deserve Celebration
A surprise jump in comparable sales and a big earnings beat sent shares of video game retailer GameStop (NYSE: GME) higher on Wednesday, but below the surface all is not right with the company. There was more bad than good in GameStop's third-quarter report, and the existential threat facing the retailer hasn't diminished.
GameStop managed to report comparable sales growth of 1.9% in the third quarter, pushing its revenue slightly above analyst estimates. The Nintendo (NASDAQOTH: NTDOY) Switch was the main reason, driving new hardware sales up 8.8% year over year. The Switch also helped increase new software sales, which jumped by 5.4%.
The Nintendo Switch game console. Image source: Nintendo.
Source: Fool.com
Gamestop Corp. Stock
€22.74
0.070%
Currently there is a rather negative sentiment for Gamestop Corp. with 7 Buy predictions and 21 Sell predictions..
The target price of 5 € compared with the current price of 22.74 € for the stock indicates a negative potential of -78.01%.
