GameStop shares climb to three-year high

Retailer's stock value highest since 2009 as profits predicted from next-generation consoles and GTAV sales.

by

GameStop shares have jumped to a three-year high following analyst predictions that the retailer will see a sales jolt from the arrival of next-generation consoles.

The Grapevine, Texas retailer rose to its highest level since April 2009, closing yesterday up 6.4 percent to $29.76. The stock is doing even better today, up 1.04 percent to $30.07 at press time.

Sterne Agee analyst Arvind Bhatia yesterday issued a note to investors on GameStop predicting an uptick in sales once the PlayStation 4 and potentially the Xbox 720 arrive later this year.

In addition, Bloomberg obtained an investor note from Ascendiant Capital Markets analyst Edward Woo, who echoed Bhatia's comments.

"The new core gaming consoles by Microsoft and Sony will drive consumer interest and demand for video games over the next several years," Woo wrote.

Janney Montgomery Scott analyst Tony Wible, according to Bloomberg, said GameStop will gain further market share once the next-gen platforms arrive.

All three analysts have a "buy" rating for GameStop.

As part of its fourth-quarter and full-year earnings report last week, GameStop said the launch of at least one new console this fall, combined with a blockbuster title in Grand Theft Auto V, will lead to significant growth.

Discussion

49 comments
WPSHEARN
WPSHEARN

Must be all the games I bought over the last couple months lol

SnakeEyesX80
SnakeEyesX80

I haven't shopped at GameStop in well over 3 years.

Robertle419
Robertle419

Thanks Good that their doing great and I like their pre-order policy which is that you can knock as much as you want until its paid off

zenogandia
zenogandia

Of course, the news that Sony won't block used sales pretty much saved gamestop this generation... they won't be lucky with the ps5. I suspect the industry will defeintly go full digital by then.

FaustXII
FaustXII

What mall is that Gamestop in? It looks very retro.. I like it.

csward
csward

Yet the fundamentals of the stock are no better than they were in August when the were at a 52 week low. All these buffoons buying on the highs here will be sad when the stock has a bad quarter or 2.

k2theswiss
k2theswiss

offering 50% trade in bonus + 10% from card= win 

shinmew
shinmew

WOW! They must have started cutting hours at corporate now to get those numbers. They can't cut anymore from the stores without having only Managers run the show.

WCK619
WCK619

I don't own any stocks.

Syrlink
Syrlink

Crazy how much of an impact a new GTA makes...I hope GTAV has more things to do in the city though, like San Andreas did.

atlanticmoon
atlanticmoon

Want GameStop out of business? Don't trade in your used games. 

Jyakotu
Jyakotu

I've always had mixed feelings about GameStop. What I never liked was how their older used game never had the box art OR the game manual. I had to print off the cover for my copies of Street Fighter: Anniversary Collection and Street Fighter Alpha Anthology. Then again, I was able to find a copy of Tales of Graces f after going to Best Buy, Target, AND Walmart only to find out NONE of them had it.

darkeyez81
darkeyez81

How much I wish that Microsoft ditches the optical medium for the next console. That would be really bad news for Gamestop.

decoy1978
decoy1978

While news worthy, anyone with decent knowledge of stocks will know that it fluctuates by the hour and by the day.

This 3-year high will only be remarkable if it remains steady the days following. However if it peaked tomorrow and shot down, there would be just as many people proclaiming the doom of Game Stop.

A sure sign that a company is about to close down, is if its symbol gets taken down from Nasdaq, S&P, Dow Jones. Until that happens... Game Stop is here to stay.

GOGOHeadray
GOGOHeadray

Not surprising gamestop is the go to store for a majority of gamers; why people think they will all of a sudden go out of business because a small majority of gamers don't like them is beyond me.

DarxPhil
DarxPhil

...But April fools is supposed to be over.

SteamyPotatoes
SteamyPotatoes

Yet not a penny goes to the developer on used games, Gamestop ... promoting legal piracy since 1984.

Elk
Elk

But still half of what they were in 2008

SkamArtist
SkamArtist

Is CBS interactive affiliated with Gamestop or something?

Fursnake
Fursnake

Gamestop should print this out, frame it and hang it in their corporate office.

Spartan_418
Spartan_418

@darkeyez81 We know they won't entirely ditch discs, though. Games will come on Blu-ray discs for installing to the hard drive, though it won't be able to play a game directly from the disc.

It will still hurt GameStop since it'll likely be used as a way of blocking used games, but GameStop will still be able to sell those new physical copies.

GOGOHeadray
GOGOHeadray

@darkeyez81 And I guess you wouldn't mind seeing Microsoft go out of business as well correct?

zenstrata
zenstrata

@SteamyPotatoes The sale of used games puts money into the game industry which would not be there otherwise.  Many people who purchase used titles are doing so because they can not afford to buy the game new.  This means they would either buy a used game, or no game at all.

Also what do you think happens when players sell a game on the used market?  They often turn around and put the money they received right back into buying another game!  Once again this money would not exist if there was no used game market.

The used game market also helps to sell New Games through building a companies reputation.  If a player purchases a used game, and finds that they enjoy it quite a bit, then they will be on the lookout for more games from that company or games within the same franchise which come out in the future.  It makes those same customers who enjoyed the used older title, more likely to purchase the next game from that company or franchise on the New market.

Used games sales actually boost the amount of money which goes into the games industry.  This is why I fully support used games sales, and so should every other developer out there.  Unless (of course) they are making really crappy games, then those companies would only be hurting their own reputations. For a bad company, it is very much in their own self interest to restrict used games sales as much as possible so they can get the maximum amount of revenue out of whatever single title they are producing, instead of building up a good reputation with customers to boost future sales.

csward
csward

@SteamyPotatoes So I suppose buying used furniture, art, books, movies, exercise equipment, cars, ect. is piracy too?

GOGOHeadray
GOGOHeadray

@SteamyPotatoes How is it piracy when I bought the game? After I purchase it I can do whatever the heck I want with it. I bought a used Samsung galaxy s2 phone of some local chick maybe I should send Samsung some money then right?

eddienoteddy
eddienoteddy moderator

@SkamArtist Do you ask this because we have written what sounds like positive coverage about GameStop? 

darkeyez81
darkeyez81

@GOGOHeadray @darkeyez81 Steam has already proven to be successful without optical medium, why not Microsoft? Digital only it's the inevitable future.

Mr_Mark_Legion
Mr_Mark_Legion

@GOGOHeadray lol dont open that can of worms. some ppl have bought into the propaganda of the gaming industry.

roman4545
roman4545

@PSBEATSALLDEAL 

it doesnt matter how good or how bad the game is.. people are still trading in or selling it once they are finish with the game. Only people who loves games like us keep them like a trophy for collection !

Llama345
Llama345

@PSBEATSALLDEAL @SteamyPotatoes What?  I have friends that ALL they buy are used games.  They never get new ones. I too have games from way back, but we as 2 people are no where near the numbers who exclusively buy used games. 

SkamArtist
SkamArtist

@eddienoteddy @SkamArtist Pretty much. I do understand that as a gaming news site that you guys have to report on SOME Gamestop news. However, over the past month or so, there seems to be a lot of coverage for Gamestop. This article in particular raised my eyebrows somewhat.

EDIT: I also understand that if CBS Interactive was affiliated with GameStop, then there would (should) be a disclaimer at the end of the article.

GOGOHeadray
GOGOHeadray

@darkeyez81 @GOGOHeadray apples and oranges. Computers are epexcted to be online all the time so it is natural that PC's would steer towards a more digital base of game distrubution. With consoles a large number of console buyers lack the high speed internet needed to play online effectivly.

shinmew
shinmew

@darkeyez81 @GOGOHeadray  As much as many of us don't like it... that is very true it seems. I'd be sad to see that happen but it looks like it is going to regardless.

WPSHEARN
WPSHEARN

@eddienoteddy wrong scroll down to the bottom of the page . GameStop is owned by CBS

shinmew
shinmew

@eddienoteddy @SkamArtist  You should interview people that work there or use to work there. There are many things your average gamer doesn't understand about that company and how the people working there are treated.

eddienoteddy
eddienoteddy moderator

@SkamArtist And so we're clear, CBS Interactive is not in partnership with GameStop. In fact, GameStop owns the Game Informer magazine and editors of that site always disclose that fact.

Regarding the "all three analysts have a 'buy rating for GameStop" line in the text, we always try to include as many relevant facts as possible in a given news story. This is an effort to give readers the clearest possible picture of the situation in question. 

The line was not designed as a sales pitch spurring anyone to buy GameStop stock, but rather just an extra line of context.

SkamArtist
SkamArtist

@eddienoteddy @SkamArtist I think it is my interpretation more than anything. As I read the article, it felt (to me) almost like a sales pitch to purchase GameStop stock. You stated in the article "All three analysts have a 'buy' rating for GameStop." I know you are just reporting the facts and I admit that my initial comment was more tongue in cheek. With that being said, it was purely my perception after reading the article. 


EasyComeEasyGo
EasyComeEasyGo

I had no idea, I was also curious as to why gamespot have been reporting news on gamestop. I know gamestop is a major business in the U.S since I'm a pro member [I'm only a member is because I like those gameinformer magazines I get in the mail, Classic] but the thing is how well will gamestop fair in next-gen? I will be looking forward to your news update on this Eddie.

eddienoteddy
eddienoteddy moderator

@SkamArtist Curious as to why this article in particular raised your eyebrows.  GameStop shares being at a three-year high is a milestone I thought readers would want to know about.

The reason you're seeing more stories about GameStop now, perhaps more than before, is because GameStop is one of the only game-only chains in the United States. And as the industry heads into a console transition, there are a lot of questions that remain. I am trying my best to bring you those answers. 

If our news stories on GameStop, or any company for that matter, are coming across to you as skewed or biased, please bring that to my attention. Our aim is objectivity and impartiality. We report the facts and let the reader decide how to interpret them.