The melt-up in retail game companies and their suppliers appears to be excessive, but investors should not expect them to fall over the longer term. A major refresh in consoles from Microsoft and Sony ensure that the game industry has a platform to compete against mobile games. The positive cycle for GameStop, Sony, and AMD will not begin until later this year, and will unfold over a number of years. For investors who missed the rally, it is probably not a good idea to buy shares at this time. Stocks could sell-off after an Xbox announcement. If that happens, that may be a better entry point for investors.

Written by Chris Lau


If you liked this article you might like

Watch Out For the Dominoes That Fall: Cramer's 'Mad Money' Recap (Wed 9/20/17)

Tesla Close to Unveiling Autonomous Driving Chips With AMD

Microsoft's New Xbox One X Shows It's Done Trying to Please Everyone

Caterpillar Leads Dow to Records, S&P 500 Also at All-Time Highs

Cramer: Nvidia Is More Than Just a Pet Name