Why Shares of GameStop Jumped Today
Shares of video game retailer GameStop (NYSE: GME) jumped on Wednesday following a third-quarter report that beat analyst expectations. A surprise jump in comparable sales pushed revenue higher, while some discrete tax items led to a big earnings beat. The stock was up about 7% at noon, after being up as much as 11.7% earlier in the day.
GameStop reported third-quarter revenue of $1.99 billion, up 1.5% year over year and $30 million higher than the average analyst estimate. Strong demand for the Nintendo Switch drove an 8.8% increase in new hardware sales and a 5.4% climb in new software sales. Comparable-store sales rose 1.9%, and the company now expects to post positive comps for the year.
The Nintendo Switch is driving strong hardware and software sales for GameStop. Image source: Nintendo.
Source: Fool.com
Gamestop Corp. Stock
Our community is currently low on Gamestop Corp. with 8 Buy predictions and 21 Sell predictions.
A target price of 5 € results in a potential of -78.28% which would mean heavy losses compared to the current price of 23.02 € for Gamestop Corp..
