Apple Starts to Bounce Back and GameStop is Looking to Take on Amazon
The world’s largest publicly traded company bounced back yesterday after a 20% fall in the previous few weeks. A key driver behind the small recovery is increased optimism over the Apple Watch. The company released two new models last week including a more affordable option than many of its previous releases.
One reason investors are excited about the new Apple Watch release is the increased emphasis the devices place on personal health. Users will have access to vast amounts of data to improve things such as sleep and exercise. Apple got a price target boost at Citi as a result of the watch release, and it is easy to see why. The company continues to innovate and execute business strategies to capitalize on the innovation.
The video game company’s stock went up more than 20% yesterday due to conversations between an activist investor and the company. Another firm named RC Ventures acquired a 10% stake in the company at the beginning of the month which sent the stock 25% higher the day it was announced.
RC Ventures has been active in the management of GameStop. They have been working on a plan for GameStop to challenge the great beast, Amazon, in the e-commerce space. Many are pointing to GameStop’s numerous locations as an asset in the e-commerce space to facilitate fast shipping. GameStop has been struggling recently so a plan to take on Amazon would be quite ambitious. However, it is clear the prospect has investors excited.
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.