GameStop Announces Microsoft Partnership and Domino’s Stock Falls
GameStop’s stock closed nearly 45% after the company announced a strategic partnership with Microsoft. The partnership will be significant for GameStop because it will now have access to numerous Microsoft cloud services as it moves more of its business online.
Microsoft will benefit because GameStop is an important player in the console retail space. Xbox is owned by Microsoft, and as part of the partnership GameStop will expand its offerings of Xbox family products. GameStop has been searching for its purpose as more video game business has gone fully digital. This partnership is a good sign though as it shows big players in the industry still see the value GameStop brings.
Domino’s reported earnings yesterday morning and, as expected, sales numbers were quite good. However, the company’s stock price fell 7% yesterday because of much higher costs last quarter. Big fluctuations in ingredients like cheese contributed to these high costs as did higher labor costs that were mostly attributed to cleaning processes.
The drop in stock price was partially due to the incredibly high expectations investors had for Domino’s. After all, what food sector business is better suited to succeed at home than a pizza delivery company. On a more positive note for Domino’s, their market share is growing. This may be something investors should pay more attention to considering it will have much longer implications than people’s buying habits when they are forced to eat at home.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.