GME - Why GameStop Plug Power and Construction Partners Jumped Today
Major benchmarks were mixed on Wednesday, as market participants weren't satisfied with the latest move from the Federal Reserve. The central bank decided to cut interest rates by a quarter percentage point, but it left open the possibility that any future reductions might come more slowly than anticipated. Despite the widespread pressure on the broader market, a few stocks managed to mount solid moves higher. GameStop (NYSE: GME), Plug Power (NASDAQ: PLUG), and Construction Partners (NASDAQ: ROAD) were among the top performers. Here's why they did so well.
Shares of GameStop gained 6%, clawing back some of their losses from recent sessions. The past week has been a tough one for the video game retailer, as it had to deal with even larger declines in revenue and comparable sales than investors had already anticipated. A long pause between new game console releases from major producers sent new hardware sales down more than 40% year over year, and pre-owned sales have steadily dropped over time. Yet some still see hope for GameStop if its strategy to close unprofitable stores, pay down debt, and become more efficient is successful. That optimism prevailed today, and it's up to the company to live up to those hopes.
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