Deep Dive
Shownotes Transcript
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. The Switch 2 is hot, GameStop's cash is stacked, and Play is aiming for a high score. Thanks so much for joining us on this Wednesday, June 11th. I'm Julie Morgan.
The Nintendo Switch 2 has become the company's fastest-selling gaming device with more than 3.5 million units sold worldwide in the first four days since its launch last week.
Nintendo last month said it expects to sell 15 million Switch 2 units this fiscal year. The president of the company said that they set this figure with the aim of reaching the same level of sales they achieved with the original Switch in the roughly 10-month period between its launch in March of 2017 and December of that same year. The Switch 2 console is priced relatively higher than its predecessor with a price tag of a penny shy of $450.00.
The original sold for $299. Nintendo has sold over 152 million Switch units since the console was launched in 2017.
Shares of Dave & Buster's fell 8% in immediate reaction to its first quarter results after the bell on Tuesday, but this morning play is up 6.5% in pre-market action. The restaurant and entertainment company reported a marginal top-line beat, a wide bottom-line miss, and an 8.3% decline in comparable sales.
The company said it opened two new stores, relocated one store, and completed remodels of 13 stores during Q1. The interim CEO said while performance in the first quarter was nowhere close to where they wanted it or expected it to be, their back-to-basics strategy is working and is driving a material recovery in their top-line trajectory.
He went on to say that the leadership team and the board are as confident as ever that their current actions will lead to significantly improved revenue, adjusted EBITDA, free cash flow, and shareholder value in the months ahead.
GameStop is down 4.4% in pre-market action after the company posted mixed fiscal Q1 results with revenue down 16.9% year-over-year despite swinging to a net income of $44.8 million from a loss of $32.3 million a year ago.
EPS came in at 17 cents, topping the 4-cent consensus and improving from a loss of 12 cents last year. On the balance sheet, GameStop ended the quarter with $6.4 billion in cash. The company announced on May 28 that it had purchased 4,710 Bitcoin but disclosed they have not added to it since then.
Now for a look at a few other articles that are trending on Seeking Alpha. You've probably heard about this one, but we've got you covered here too. The U.S. and China agree to a framework over trade disputes. A final approval is pending. JPMorgan Chase's Diamond sees a chance that U.S. economic numbers will deteriorate soon. And Elon Musk regrets some of his posts about Donald Trump and says things went too far.
On our Catalyst Watch for the Day, Rivian Automotive, Dana, Aptiv, Mobileye, SESAI, and VinFast Auto are some of the notable companies presenting at the Deutsche Bank Global Auto Industry Conference. Target will hold its annual shareholder meeting. AT&T will webcast a fireside chat with the CFO at the 2025 Mizuho Technology Conference.
And NVIDIA will participate in Rosenblatt's 5th Annual Technology Summit, The Age of AI. On Wall Street this morning, ahead of the opening bell, Dow, S&P and Nasdaq futures are in the red. Crude oil is up 1.2% at $65 a barrel. Bitcoin is down 0.8% at $109,000. By the way, those are the same numbers for Bitcoin as yesterday at this time.
Gold is up 0.2% at $3,335. The FTSE 100 is flat and the DAX is up 0.2%. GitLab is on our list of the biggest movers of the day pre-market. GTLB is down 13% after the DevOps company issued slightly underwhelming Q2 and full-year guidance.
On today's economic calendar, at 8.30 a.m. CPI, the Consumer Price Index is expected to increase 0.2% month-over-month in May, according to the consensus of economists. On a year-over-year basis, that translates to a 2.5% increase, rising from 2.3% in the prior month.
That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha, join the highest quality community of real investors discussing stocks and ETFs at seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.