UPDATE: Ascendiant Capital Downgrades GameStop (GME) to Sell, 'Reddit trading surge likely to fade as digital threats increases'
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Ascendiant Capital analyst Edward Woo downgraded GameStop (NYSE: GME) from Hold to Sell with a price target of $10.00 (from $12.00).
The analyst comments "Recent reports by the video game publishers shows that digital revenue is increasing at a fast pace (~90% or more of publishers’ revenues), so concerns are increasing that digital game sales (which GameStop has very low market share) is beginning to be a bigger factor (~70% of a game’s total sales are now full game digital downloads). We remain very concerned about the long term prospects for its video game business especially once hardware sales temper as the installed base matures."
Shares of GameStop closed at $170.26 yesterday.
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