GameStop Corp. (NYSE:GME) Rides The Xbox Wave
The S&P 500 index tracked Electronics stores major GameStop Corp. (NYSE:GME) is trying to make the most of the excitement around the launch and the commencement of retail sales of Microsoft Corporation (NASDAQ:MSFT) flag ship gaming console Xbox One late last week. Its stock took off during trading on November 22, thanks to the initial buoyant sales numbers of Xbox One. The stock posted a 2.17% increase in its market value, reversing trend of last 90 days of continued weakness in the stock. The stock had seen a 2.88% decrease in its market value in the past 90 days and which had got extended to 13% loss in value during last week’s trading.
Analysts and Investors Excited
In spite of sluggish performance at the browsers, rating agencies like Needham have gone aggressive with their valuations of the future prospects of this stock. Rating agency has increased its price target for the stock to $60 and upgraded the stock to a Buy from its previous Hold recommendation. Analysts are also pointing out that the retailers for games will see a big surge in demand during this holiday season pointing out that the Xbox One generated enthusiasm among gaming enthusiasts is going to in turn generate a strong counter push from industry’s other strong player Sony for its own flag ship gaming product PS4.
While analysts and investors seem to anticipate solid prospects for the electronic games retailer, GameStop Corp. (NYSE:GME) is less gung go about its earnings potential over the next few months. In spite of a record one million units of the newly launched gaming device flying of the store shelves of various retailers from across the globe during just the first day of sale, GameStop Corp. (NYSE:GME) released downcast outlook for the quarter and the year ahead.