Almost three weeks ago, I talked about the demise and the end of GameStop.
My personal opinion is Gamestop is dead to me. I think in the coming years, the stock price is going to $0.
Netflix went digital and ended Blockbuster’s physical distribution reign.
The same thing is happen with the distribution of games. Microsoft plans to offer digital downloads at significant discount over the physical version. Sony introduced PlayStation Now, an on-demand game-streaming service that promises to deliver old PlayStation games over the Internet. And because this form of distribution is cheaper, Sony and Microsoft can sale their games at a lower price.
GameStop announce their first quarter earnings today and the results were dismal at best. Earnings per share were down almost 17% and revenue was down almost 8% from a year ago. But the kicker was during the conference call, GameStop said they would not give forward guidance.
“As we shared in our earnings release, given the many variables around our profit improvement initiatives, the hiring of George as our new CEO and other strategic initiatives under consideration, we decided not to provide our typical annual earnings per share guidance at this time,” CFO Robery Lloyd told investors on a conference call late Tuesday.
“As our initiatives take shape, we will look to update investors as appropriate,” he added. “That said, we’ve decided to provide first quarter guidance given we’re two-thirds through the fiscal quarter. We’re also providing sales metrics based on what we see in the industry today and what we expect for the remainder of the year.”
On the news, the stock price was down double digits today. But expect the downward spiral to continue. Price broke the monthly demand at $11.50
the chart suggests price is heading down to the so the next stop is the monthly demand at $6.50.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.