On March 23, GameStop will have to report fiscal financial results, after what it seems to be a very bad season for video games sales. Everybody knows that 2017 did not start well for the retailer, analysts expecting the video games chain to report $2.29 per share in earnings, and approximately 3.12 billion dollars on revenue. In comparison to last year’s numbers, GME shares have gone down by 3.5%.
Indicators show that although share prices are smaller than last year’s, the company may have an upward trend in the following months. This may come as a result of small sales in November, after the company had very strong Black Friday promotions for Call of Duty: Infinite Warfare and Titanfall 2 but smaller sales than predicted, and not big enough improvements involving the new consoles and virtual reality headsets. GameStop is dealing with the online selling and the fact that a lot of gamers started using mobile apps.
GameStop said that although things did not worked perfectly in the last fourth quarter of the fiscal period, 2017 started with a small growth in sales. The results will be public after the market closes on Thursday.
Two of the biggest companies on the market already reported their numbers, with high trending stocks on the results, so it’s a big chance that GameStopp will do good too. Analysts say that the $2.31 result will still be a little bigger than the general trend of the last quarter. As long as the company can prove better numbers than expected, the stock could go higher.
If you consider buying stocks in GME, buy it under $24.50 and sell it if it goes under $ 22.00. GameStop is dealing with the fact that consoles started to sell games and a lot of gamers started using mobile apps.
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