This Could Be the Moment GameStop (GME) Breaks, Says Pacific Crest

GameStop (NYSE: GME) shares declined pre-market following the release of NPD data. The report said November total video-game sales rose 2% to $2.47 billion. Video-game software sales were down 7% to $1.02 billion, while hardware sales rose 11% to $1.12 billion.

Commenting on the development, analyst Evan Wilson of Pacific Crest said, "We continue to think that total software sales for top titles are performing well. The very disappointing physical NPD sales number is likely largely explained by the shift to digital downloads, which is not measured in the NPD data."

The analyst added, "We have been made out to be uber-bears on GameStop over the years, which is fair, but even we are shocked at how bad the November software sales were. We think there is some chance that December and January could be better than the disappointments October and November have been, but growth will remain a challenge. After studying the slate for early 2016, we think this is likely as good as it gets, and that is pretty bad. This is one of those pivotal moments in the history of a company and a stock that will not be forgotten. Investors always wondered when GameStop would really break; this could be that moment."

You May Also Be Interested In

• William Blair Reiterates Outperform Rating on SpaceX (SPCX) Post Launch
• NiSource (NI) PT Lowered to $45 at BMO Capital
• Adicet Bio Inc. (ACET) PT Raised to $28 at Wedbush