GameStop Falls as Piper Jaffray Cuts Estimates
Shares of video game retailer GameStop (NYSE: GME) fell on Thursday after analysts at Piper Jaffray cut their revenue estimates for the company. At last check, the stock was trading down around 5 percent to $26.19.
GameStop shares have been moving strongly higher over the last three months, adding more than 15 percent during that time. Shares are holding above a support level at $26.00.
Traders will want to watch this level closely as a break of $26.00 to the downside could lead to heavier losses in the name.
The Piper Jaffray analysts cited weak expectations for the Wii U game console, saying that the next-generation Nintendo game system's technical details were "disappointing."
GameStop is a very heavily shorted stock with more than 36 percent of the float sold short. In recent months, these short-sellers have been wrong about the direction of the name, but Thursday's losses could be the beginning of a downtrend in GameStop.
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