GameStop’s Stock May Be Walking on Thin Ice and Hyundai’s Potential Collaboration on The Apple Car
GameStop was once the hub for teenagers around the world to get their games, but today many games are downloadable and the need for brick-and-mortar stores is on the decline. Over the past year, GameStop has struggled despite game publishers reporting major spikes in revenue and user engagement.
The numbers don’t look good either as Connor Smith of Barron’s reports: sales are forecast to drop 17% in the fiscal year that ends in January, after a 22% drop a year ago. Earnings have declined for four consecutive years, and analysts see them going deeply negative in the 2021 fiscal year that ends this month, with an adjusted loss of $1.86 a share.
Despite this GameStop hasn’t gone silent, with GameStop CEO George Sherman saying in a December 2020 interview that the company was making progress on its “digital-first approach, focused on delivering a best-in-class e-commerce experience along with an optimized retail footprint.
Hyundai seems to be partnering with Apple on a self-driving electric vehicle. Industry sources have revealed that the plan is to build cars at Kia Motors’ factory in Georgia, or jointly invest in a new factory in the United States. The manufacturing goals are to reach 100,000 vehicles in 2024 at the proposed plant.
Kia Motors is an affiliate of Hyundai Motors which is why their factory may be used. The report said Hyundai and Apple plan to release a “beta version” of Apple cars next year, despite this the final car will not be here for many years and it is reported Apple and Kia have not yet had any “immediate contact”.
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.