Twitter and GameStop Re-evaluate Their Market Models Based on Recent Competition

NEW YORK, NY / ACCESSWIRE / March 27, 2017 / Popular gaming store company GameStop and social media company Twitter are beginning to make shifts in their long term business strategies as the companies begin to evaluate current 4th quarter earnings reports. While neither company is in immediate distress, management is making changes to continue to remain competitive in the ever-changing worlds of social media and gaming.

RDI Initiates
Coverage:

Twitter Inc. https://ub.rdinvesting.com/news/?ticker=TWTR

GameStop Corp. https://ub.rdinvesting.com/news/?ticker=GME

Twitter’s shares advanced 1.41% to close at $15.14 a share on Friday. The stock traded within a $0.34 range between $15.37 and $15.03 on volume of 15.55 million shares traded. The news that is likely to change the investor perception of Twitter is that it is seeking to offer a subscription service that will offer those willing to pay up more information and tools. The service as a whole will remain free, but the decision to move in this direction is an admission that competing with Google and Facebook for ad revenues is a battle they are not likely to win.

Google and Facebook are about analytics. The direction Twitter is headed towards with their subscription service offer is a move towards being a news and information service – something the company has achieved a solid reputation for. With the current White House Administration, Twitter is likely to remain a primary media source of information. Twitter is still making losses and it currently has negative EPS of $0.65 a share.

Access RDI’s Twitter Research Report at: https://ub.rdinvesting.com/news/?ticker=TWTR

GameStop Corp stumbled 13.61% to close at $20.70 at the end of Friday’s trading session. The stock traded between $21.95 and $20.66 a share on volume of 15.94 million shares traded. The late week news has not been good for GameStop investors, as the company announced the closing of 150 stores. This came on the heels of an announcement by Chief Executive J. Paul Raines that sales and earnings fell by more than 10 percent as of the last reported fiscal quarter, and its discounted holiday shopping season had cost the company some market share.

One of GameStop’s strong plays is their collectibles stores which has grown almost 60% in 2016 with revenue of $494.1 million and Gamestop projects it to reach $1 billion by 2019. GameStop will open 35 new Collectible Stores in year 2017. GameStop at its inception depended on its business model of 100% videogame sales.

Access RDI’s GameStop Research Report at: https://ub.rdinvesting.com/news/?ticker=GME

Our Actionable Research on Twitter Inc. (NYSE: TWTR) and GameStop Corp. (NYSE: GME) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information, please read our full disclaimer at www.rdinvesting.com/disclaimer.

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