GameStop shares fall

Shares currently trading down close to 10 percent after analysts were expecting bigger earnings per share forecast for fourth quarter.

by

GameStop's latest quarterly earnings report released today showed both revenue and profit were on the rise year-over-year, but investors are not responding positively to the news. GameStop shares are currently trading down more than 9.5 percent to $47.33 (-$5.12).

One potential explanation for Wall Street's sourness could come down to the retailer's projected earnings for the all-important fourth quarter holiday period.

GameStop said today that it expects earnings per share to range from $1.97 to $2.14. According to a Thomson Reuters poll, analysts were expecting this figure to be $2.15.

The retailer will hold an earnings call to discuss results and answer analyst and media questions beginning at 11 a.m. EDT. Check back later for more.

Discussion

46 comments
titobxny
titobxny

Customer service is pretty poor in most stores. They really don't teach their associates that engaging, inviting and appreciating are what brings customers back.  I agree that they are like a pawn shop these days.  The stores are messy and the prices that they ask for used stuff is just not right. 

Techtroll
Techtroll

Gamestop is in big trouble now that bestbuy and amazon buy used games and the power up rewards is a joke

WingChopMasta
WingChopMasta

Gamespot is nothing but a corporate pawn shop. For a company that deals exclusively in games you would think they would have the lion's share of the new stock, nope. They get literally the smallest shipments of anything new. Bestbuy and Walmart dwarf their new release stock and now new release hardware.

I swear the only reason you would ever need to preorder anything these days is if you were getting it from a Gamestop. I have never had to preorder a thing in a long time because I just go and get it elsewhere.

It is also cheaper to buy used games directly from the seller. Get used games from classified sites.


mastervelix
mastervelix

Good I hope GameStop rots!!!! I called them the other day they said they would give me 32$ for a Xbox 360 slim model....32 DOLLARS!!!!! And then they will go ahead and sell it back for 150$, bunch of low life over selling, penny leeching morons. Not to mention every time I went there I had to constantly be asked if I want a stupid GameStop card and a one year subscription to a stupid magazine. HORRIBLE company all gamers should go digital cut out the middle man and drive game prices down!!!!!

Death_Masta187
Death_Masta187

I think its been 10 years since the last time iv been in a gamestop. With the advent of the internet I really I don't see how brick and mortar stores have lasted as long as they have.  I cant say ill be sad when GS goes under.

hikaruai
hikaruai

So Grand theft auto setting records and PS4 selling a million units in a day wasn't enough to get Gamestop to reach its forecast?...Sorry, but that just means who ever was predicting figures is an idiot

gameroutlawzz
gameroutlawzz

I bought a PS3 2 years ago only to play Demons Souls, guess the only place where I could find the game? Used at EB games for 10 bucks, yes 10 friggin' bucks for a masterpiece in top shape with the casing and manual.  While some bash Gamestop/EB games  they still manage to have some great deals sometimes. Nowhere on internet I wouldve found the game for that price.

daikkenaurora12
daikkenaurora12

Two articles within 30 mins of each other.  Gamestop stocks up, Gamestop stocks down. 

McGregor
McGregor

Who is surprised? Companies like Steam are showing that providing a model with a cheaper cost of entry and no option to resell are something the consumer is ok with. On top of that, consumers are learning that they can sell their copy of a game on craig's list (or similar) for well over double the amount they would get from a gamestop. This model of "buy used games" is going to die eventually, this is why Gamestop purchased a wireless company.

NoAngle
NoAngle

This industry is bound for failure, it is just a matter of time.

the only thing keeping them in business is that both MS and Sony caved on going %100 digital this gen.

nickpeck36
nickpeck36

So considering the big "holiday" shopping season has yet to even start, why are they crying (the investors)?  Even people with money are stupid lol.

uncha1n3d
uncha1n3d

Good thats what they get for always giving us gamers crappy trade in credit and harass us about preorders every time we shop there

SpicaAntares
SpicaAntares

Is it me or are chain stores (or publishers) fixing prices between themselves? How is it that prices are the same everywhere?

SpicaAntares
SpicaAntares

If only there was some competition from one chain store to another. Since prices are the same everywhere, why buy there unless you live close by.

chaos-commander
chaos-commander

To who ever thinks that sales and shares are connected in every way to a company your an idiot. 

Fursnake
Fursnake

If it wasn't for Gamestop gift cards from doing surveys I would never go there. But for free games HELL YEAH I'll go to a Gamestop.

zintarr
zintarr

Gamestop has the worst customer service and if there is a line of more than 3 people it is usually faster to walk over to the BestBuy across the way.

super_tramp_tri
super_tramp_tri

Gamestop sales surge after GTA5; Gamstop shares fall.

BARRICADE_28
BARRICADE_28

Forever hoping this horrible company goes out of business and a company that respects gamers takes its place.

snacky_smorez
snacky_smorez

Maybe people finally realized they can sell there games online instead of in the store.

Saidrex
Saidrex

always mixed up Gamespot with Gamestop

sirapathetic01
sirapathetic01

@mastervelix So, you hope they "rot" because you decided to ask how much they would buy your system for, even though you know that they do the shenanigans they are known for?

You should be upset with yourself for even considering GameStop. Ebay's the place for things like that.

I don't wish they go out of business, because then that just makes everything worse for the gaming industry and employment rates. I just hope they learn their lessons before it's too late for sorry.

Kjranu
Kjranu

@Death_Masta187 They won't go under as long consoles don't switch to digital distribution. They'll have to diversify their business or die like Blockbuster did. 

blaze_boy30
blaze_boy30

@hikaruai  Gamestop isn't the only place where you can buy physical copies of a game or game consoles.

nickpeck36
nickpeck36

@SpicaAntares Yah there is a lot of that going around.  I sell mine fore 59.99, you sell yours for 57.99, I then drop my price to match and every other store that catches wind does the same thing.  I notice it a lot where I live, but won't complain haha.

skippiman
skippiman

@chaos-commander You're the idiot. Of course they're connected. When a company sells things they make money, when the company announces how much money they made stock prices go up or down. Other things can also drive prices. 

Sefrix
Sefrix moderator moderator

@super_tramp_tri Hah noticed that as well. Ironic headlines so close together.

unreal101
unreal101

@BARRICADE_28  I'm with you. GS is the worst-offender with retailer-specific preorder DLC. if they go away, maybe that stupid trend will as well.

wookiegr
wookiegr

@BARRICADE_28 I was lucky enough to trade in all my old Xbox 360 crap for a new PS4 pre-order that practically cost me nothing so I am grateful for Gamestop. Funny thing is, I bought a used 360 console from them earlier in the year and after 3 months is just constantly crashed making it worthless. They are dumb and didn't fully test it to know it didn't work properly so double bad on them.

devilzzzwin
devilzzzwin

@BARRICADE_28 I have had nothing but positive experiences with GameStop/EB Games and would hate to see them go.  If they left it would be the end of use game sales possibly and while their promos aren't as good as FS or BB anymore I was able to take advantage of some that actually helped me make a profit at times and also get great games at great prices.  I also bought used consoles from them and never have had an issue with any of them.  Sorry but if GameStop/EB Games went away things would get worse and not better.

devilzzzwin
devilzzzwin

@snacky_smorez In the past 2 years it has gotten much harder to sell stuff used online.  Bad economy = less buyers.

hikaruai
hikaruai

@blaze_boy30no kidding, but sales have been astronomical lately, I guarantee that Gamestop sold a ton of PS4s and GTA5s

McGregor
McGregor

@Vidpci @SpicaAntares I have arguments for both sides of this. Once you buy 11 games, you essentially get the 12th game free...But I'm with you, $5 isn't enough to justify not picking up a new copy.

BARRICADE_28
BARRICADE_28

@devilzzzwin @BARRICADE_28 I'm sorry but GameStop/EB Games is in the business of ripping off gamers.  Replace them with a company that respects gamers a bit more.

SpicaAntares
SpicaAntares

@McGregor @SpicaAntares @nickpeck36 

I often buy from Amazon too but lately I learned that they push their employees until breakdown in their warehouses. Not something I find amusing, nor something I tolerate.

McGregor
McGregor

@SpicaAntares @nickpeck36 It's all about online retailers. Amazon refunds the difference of a game title to me if it goes on sale. I bought Kingdoms of Amalur when it launched, and about 8 days later I got a $5 amazon credit when it went on sale. Pretty awesome customer service there.