
NYSE:GME
This summary was created by AI, based on 10 opinions in the last 12 months.
GameStop Corp. has recently generated mixed signals regarding its performance and strategic direction. Reported revenues vary significantly, with some sources citing $972 million and a 32.7% increase, suggesting a positive trend in demand, while others highlight a concerning drop to $732 million, reflecting a 42.9% decline from the previous quarter. Despite these inconsistencies, gross profit figures indicate efficiency improvements, with a noted increase of 12% in certain reports. The company’s entry into cryptocurrencies and possibilities of a leveraged buyout, potentially aimed at acquiring eBay, hint at strategic moves to bolster its competitive position against giants like Amazon. Social media mentions have seen a notable rise, which may reflect growing public interest or sentiment about the company’s future prospects.
(A Top Pick Jan 16/15. Up 32.29%.) They generate about $9.5 billion a year and have about $8-$9 million in debt. With that kind of cash flow, he feels comfortable that the dividend is going to continue to grow. The underlying business fundamentals look quite healthy. He still sees some upside. Dividend yield of about 3%.
A retailer of games and game devices, etc. He has been a big proponent of consumer discretionary stocks, especially companies that don’t require a huge outlay. As a retailer, this company is in a good space, because there continues to be lots of new titles coming out and lots of refreshes of existing titles. He would prefer to own online retail for video. This stock has just made a new high. He would have no problem owning the stock. (See Top Picks.)
(A Top Pick Jan 16/15. Up 3%.) This is a play on the consumer. It gives you a broader range including Xbox, PlayStation and all of their games. This is an area where he is seeing dollars being channelled to. This company has done a few things in the last year which are compelling. They have grown their mobile space and are bringing the consumer in with their secondary market.
The stock ran up considerably. In 2013 it was up 100% and had moved up in anticipation of the new Sony and Xbox consoles coming out. It ran up too much and spent last year playing catch-up when the stock was down about 30%. Although it declined in 2014, the fundamentals of the company actually improved. They diversified their income stream from solely being dependent on the gaming market and are now moving into the mobile market. They acquired 46 outlets of Simply Mac, which sells Apple products. They have Cricket and Spring Mobile, which are pre-paid and post-paid AT&T phones and services. Very clean balance sheet with very little debt, about $4 million. Dividend yield of 3.72%.
(A Top Pick Jan 16/15. Up 10.83%.) Pulled back about 15% recently because a firm downgraded them. He feels that is meaningless and there is still a lot of upside. They pay a great dividend and have very little debt.