GameStop Jumps on Apple’s Bandwagon
In a sinking gaming market, with industry-wide hardware sales down 5.5% and software sales down 9.9% last quarter, industry giant GameStop (NYSE:GME) has no problem staying afloat. The company has announced new plans to accept Apple (NASDAQ:AAPL) iPhone, iPad, and iPod trade-ins—a move that GameStop believes will be huge for financial growth.
Offering $150 for an iPod, $175 for an iPhone, and $375 for an iPad, the company sees crucial turnaround profits on all of these high-demand products. For a company that was once based around hardware and software sales, this sales shift is bringing in much appreciated revenue.
In a research note sent to investors, Welbush analyst Michael Pachter wrote “given the public’s seemingly insatiable demand for iDevices, the high trade-in credit that can be received for these devices (as opposed to the typical console game, for example), and the economic constraints felt by many consumers that prevent the purchase of a brand new iDevice, we see this used business as a significant revenue growth opportunity that has not been addressed by GameStop’s (NYSE:GME) competitors.”
Here’s how these stocks are trading:
- Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $375.19, down $2.22, or 0.59%. Its market capitalization is $348.70 billion. They have traded in a 52-week range of $305.24 to $426.70. Volume today was 12,186,004 shares versus a 3-month average volume of 20,520,700 shares. The company’s trailing P/E is 13.55, while trailing earnings are $27.68 per share. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Get the most recent company news and stock data here >>
- GameStop Corp. (NYSE:GME): GME shares recently traded at $22.51, up $0.58, or 2.64%. Its market capitalization is $3.13 billion. They have traded in a 52-week range of $18.34 to $28.66. Volume today was 5,510,595 shares versus a 3-month average volume of 3,906,790 shares. The company’s trailing P/E is 8.22, while trailing earnings are $2.74 per share. About the company: GameStop Corporation operates specialty electronic game and PC entertainment software stores throughout the United States, Australia, Canada and Europe. The Company stores sell new and used video game hardware, video game software and accessories, as well as PC entertainment software, and related accessories and other merchandise. Get the most recent company news and stock data here >>