Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
GameStop Corp. (NYSE:GME) reported its fiscal fourth-quarter 2016 results in line with recently lowered expectations. With the game segment continuing to be under pressure, the focus is on the company’s diversification strategy, Baird’s Colin Sebastian said in a report.
While reiterating an Outperform rating and a price target of $24 for GameStop, Sebastian mentioned that the pullback in shares due to uncertainties makes the stock appealing for “longer-term/value-oriented investors.”
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Q4 Results
GameStop reported a 16.3 percent decline in same-store-sales, due to soft sales of certain new game titles and aggressive hardware promotional activity. “We note that growth in Collectibles (+28 percent Y/Y) and Tech Brands (+44 percent Y/Y) remain encouraging as new store openings/category growth support the company's ongoing diversification,” Sebastian wrote.
2017 Guidance
Management guided to 2017 EPS of $3.10–$3.40, significantly short of the consensus expectation of $3.73. SSS is projected in the range of -5 percent to flat.
“We note that $0.25 of the EPS headwind results from higher expected tax rates, compounded by investments in new category growth, some deleverage in video game sales, and higher interest expenses,” the analyst pointed out.
Management indicated robust initial demand for Nintendo Switch, which could be a source of upside when supplies improve.
At last check, shares of GameStop shares were down 12.48 percent at $20.97.
Related Links:
GameStop Sees A Tough End To 2017The Bright Spot In GameStop: Collectibles
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.