Monday, 23 August 2010

GameStop Shares Take A Bath

Texas-based retail company GameStop couldn't use its strong sales numbers to ward off a drop in their share price. Despite a 4.2% rise in net earnings for the company, shares in the company ended 8.2% down since the release of their Q2 numbers. In addition to this, Wedbush Morgan analyst Michael Pachter called the performance "sloppy" and pointed out that there was still some question as to how GameStop was going to participate in digital content.

I'm not sure why people who are dumping GameStop stock now were waiting until the financials came in. Were they hoping the Q2 report had some magic formula to stave off the impending war between the company and publishers over used game sales? Why bomb the stock now?

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