Why Mobile Gaming Industry Can be Gold Dust for GME Stock?

• GameStop can do better by entering the mobile gaming industry.
• The company will reveal their third quarter earnings this week.
• Company shares were changing hands at $26.6 in the past 24 hours.

GameStop to Reveal Q3 Earnings Soon

With the year coming to an end, the gaming industry is estimated to lower this year’s revenue by around 4% in contrast to previous year. Many companies in the sector are yet to reveal their third quarter earnings this year. GameStop (NASDAQ: GME) being one of them, the organization will reveal the financials on December 7, 2022. Currently, GME stock was changing hands at $26.6 at the publication time.

Activision Blizzard (NASDAQ: ATVI) has already revealed their Q3 earnings on November 7, 2022. The financials show an over 24% in the company’s profit margin and a better than expected revenue with a positive 4.6% surprise. Microsoft (NASDAQ: MSFT) acquired the company in a $69 Billion deal earlier this year.

GameStop is currently not in a very good condition. This year, the company officially revealed their NFT marketplace in partnership with ImmutableX. Perhaps the launch came at a bad time as the market was going through crypto winter. Still the company managed to bag $5 Million in the opening weekend.

GME Stock Price Analysis

Source: GME Stock Price at TradingView

GME stock saw a massive interest from buyers during March 2022 which sent the price close to $50. But the shares saw a steep fall during April – May and traded at a low of $20. The next three months gave some fruitful returns during a shaky path with buying interest returning back in July 2022, but again the stock experienced a similar pattern from August 2022 to September 2022.

Since then, GME stock has covered a consolidated path where it holds a support at $23 and $24. It broke the support for a shot span in November 2022 but returned to the zone quickly. Currently, the share price has entered the buying zone and gained some investor attention for the past few days.

GameStop can make some changes including expansion in the mobile gaming industry. According to the reports, mobile gaming users will increase to over 3.7 Billion by 2023. The consumer spending reached $116 Billion in 2021 and is anticipated to grow to $138 Billion in 2025.

The Battle Royale genre remains the favorite genre among mobile gamers. Activision is about to release Call of Duty: Warzone Mobile for iPhone and Android devices. They recently did a soft launch in Australia where people are loving the game even in its testing phase. Just think of the response it will get upon the official release. Food for Thought!

The company is undoubtedly one of the most admired organizations in the gaming industry, but a few changes here and there can make a huge impact in the future. If the company expands their operation in the mobile gaming sector, then it might prove to be gold dust for GME stock price in the near future.

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