GAME

New Game Releases: Take-Two's "WWE 2K25" is set to launch on March 14 across multiple platforms, while Electronic Arts' "Split Fiction" sold 1 million units in its first 48 hours.

Market Developments: Discord is preparing for an IPO possibly in 2025, and Loop Capital maintains a Buy rating on Best Buy, citing competitive pricing against Amazon and upcoming catalysts like the Nintendo Switch 2 and "Grand Theft Auto VI."

GameSquare Securities Filing: GameSquare (GAME) has filed for a $100 million mixed securities shelf, indicating plans to raise capital through various financial instruments.

Recent Developments: The company has been active in the esports sector, with notable achievements including FaZe Clan winning a $1 million prize and the release of a live streaming trends report by Stream Hatchet.

Earnings Call Overview: GameSquare Holdings held its Q3 2024 earnings conference call, highlighting strong financial results with a record revenue of $26.4 million, reflecting a 10% year-over-year increase driven by successful growth strategies and improved market conditions.

Management Statements: CEO Justin Kenna emphasized the company's focus on organic sales growth, integration of recent acquisitions, and building a profitable organization, while also noting the importance of forward-looking statements and associated risks.

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Financial Performance: GameSquare Holdings, Inc. reported preliminary third-quarter revenue exceeding $26.5 million, improving adjusted EBITDA loss to approximately $2.4 million, and raised its 2024 annual revenue guidance to $105-$110 million.

Investor Confidence: Shares of GameSquare are up 28.1% following the positive financial update, with notable investors including Jerry Jones and the Goff family supporting the company’s growth initiatives.

New Contracts Secured: GameSquare Holdings closed over $14 million in new contracts in August 2024, involving both new and existing customers.

Revenue Expectations: These contracts are anticipated to contribute positively to the company's revenue in the years 2024 and 2025.

Partnership Announcement: G FUEL and FaZe Clan have revived their partnership with a multi-year sponsorship deal, emphasizing community-focused initiatives and collaboration to enhance engagement in the gaming ecosystem.

Subathon Event Launch: The partnership kicks off with a month-long streaming marathon called the FaZe Clan Subathon, where G FUEL will be the presenting sponsor, showcasing content creation and authentic engagement from FaZe's talent roster.

Financial Performance: GameSquare Holdings reported a 24% year-over-year increase in pro forma revenue for Q2 2024, reaching $28.6 million, while also improving their adjusted EBITDA loss to $5.4 million from $10 million the previous year, indicating progress towards profitability by Q4 2024.

FaZe Clan Acquisition and Strategy: The company is focused on integrating FaZe Clan, which includes restructuring its operations and reducing costs, while leveraging its media and esports assets to drive engagement and monetization opportunities, with significant improvements already observed in community engagement and viewership since the acquisition.

Earnings Report Overview: GameSquare Holdings reported a second quarter 2024 earnings per share of -38 cents, missing the analyst estimate of -9 cents, while revenue reached $28.59 million, exceeding expectations of $27.00 million by 5.88%.

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Financial Performance: GameSquare Holdings reported a record Q2 2024 revenue of $28.6 million, a 24% increase year-over-year and a 22% increase quarter-over-quarter, alongside a significant improvement in adjusted EBITDA loss to $5.4 million, indicating successful growth strategies and cost reductions.

Future Outlook: The company anticipates achieving profitability by Q4 2024, with projected annual revenue exceeding $100 million and ongoing improvements in gross margin and operating costs expected to enhance financial performance in the latter half of the year.

Flavor Wars Competition: Fans can represent their favorite Fortnite streamers in the Flavor Wars competition, which features a custom map and offers a $10,000 cash prize for the winning team. The event is designed to engage gamers through interactive brand experiences with 5-hour ENERGY®.

Gameplay Details: The competition will take place on a specially designed map divided into three zones, each representing different flavors of 5-hour ENERGY®. Players will compete in a battle royale-style format, utilizing in-game power-ups to enhance their abilities during the matches.

Earnings Performance: News Corporation reported fourth-quarter fiscal 2024 earnings of 17 cents per share, exceeding estimates by 13.33% and showing a year-over-year increase of 21.4%. Revenues reached $2.58 billion, up 6% from the previous year, driven by growth in Digital Real Estate Services, Book Publishing, and Dow Jones segments.

Segment Highlights: The Digital Real Estate Services segment saw a revenue increase of 21%, while Book Publishing revenues rose 15%. However, the News Media segment experienced a decline of 5% due to lower advertising revenues, reflecting challenges in the print and digital circulation markets.

Earnings Performance: News Corporation reported fourth-quarter fiscal 2024 earnings of 17 cents per share, exceeding estimates by 13.33%, with revenues increasing 6% year over year to $2.58 billion, driven by growth in Digital Real Estate Services, Book Publishing, and Dow Jones segments.

Segment Insights: The Digital Real Estate Services segment saw a 21% revenue increase, while the Subscription Video Services segment grew by 1%. However, the News Media segment experienced a 5% decline in revenues due to lower advertising income.

New Revenue Generation: Zoned, a marketing agency under GameSquare Holdings, has signed multiple brand partnerships expected to generate over $3 million in high-margin revenue through campaigns for brands like Topgolf and DairyMax.

Organizational Changes and Strategy: The company has undergone significant organizational changes, including the promotion of Carlos Tovar as President, enhancing its go-to-market strategy to better engage with youth audiences and attract global brand partners.

Upcoming Financial Results Announcement: GameSquare Holdings, Inc. will release its second quarter 2024 financial results on August 14, 2024, and will host an earnings call at 5:00 pm ET that same day.

Company Overview: GameSquare aims to connect brands with younger audiences through innovative media and technology solutions, leveraging partnerships like FaZe Clan to enhance marketing effectiveness and brand visibility.

Earnings Performance: Accel Entertainment reported quarterly earnings of $0.25 per share, exceeding estimates and showing a revenue increase to $309.41 million, while maintaining a Zacks Rank #4 (Sell) due to unfavorable estimate revisions.

Industry Outlook: The gaming industry is currently ranked in the top 37% of Zacks industries, which may influence stock performance, with GameSquare Holdings expected to report results soon, projecting significant revenue growth.

Market Overview: The Nasdaq and S&P 500 experienced significant declines due to disappointing earnings from major companies, with recession indicators becoming more pronounced as corporate bond spreads widen and consumer debt delinquencies rise.

Stocks to Avoid: Several companies, including GoPro, ChargePoint, Nikola, Terran Orbital, LanzaTech, GameSquare Holdings, and Beyond Meat, are highlighted as poor investment choices due to unsustainable financials, declining revenues, and bleak growth prospects.