GameStop on Winning Streak as Traders Await Crucial Update

(Bloomberg) -- GameStop Corp.’s impressive rally continues ahead of tomorrow’s much-awaited holiday sales update. The stock is up for a sixth consecutive day and has risen about 12 percent since the start of the year, making it among the top performing midcap retail stocks this year.

This year’s growth was partly helped by a strong hardware cycle led by the Nintendo Switch, Telsey Advisory Group’s Joseph Feldman wrote in a note Thursday. Feldman expects holiday sales growth of 5 percent to 6 percent compared to a 16 percent decline last year.

In a note earlier this week, Benchmark analyst Mike Hickey said he expects upside to fourth quarter Street estimates due to strong Switch and iPhone X sales, noting that Nintendo has already announced record Switch sales in the U.S. of more than 4.8 million.

(Updates with today’s share gains in first paragraph.)

To contact the reporters on this story: Justina Vasquez in New York at jvasquez57@bloomberg.net, Stephen Sweeney in New York at ssweeney39@bloomberg.net.

To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net, Morwenna Coniam

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