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NetEase and Steven Madden have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 16, 2025 – Zacks Equity Research shares NetEase (NTES - Free Report) as the Bull of the Day and Steven Madden (SHOO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on GameStop Corp. (GME - Free Report) and Strategy Inc. (MSTR - Free Report) .
NetEase is an Internet technology company that develops applications, services, and other technologies for the Internet in China. Analysts have been notably bullish concerning its EPS outlook, raising expectations across the board in a big way over recent months.
The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).
Let's take a closer look at how the company presently stacks up.
NetEase Sees Big Growth
NetEase's quarterly results have been strong over recent periods, enjoying 7% revenue growth year-over-year throughout its latest period.
The stock's success and favorable outlook have been driven by mega-popular games such as Marvel Rivals, which topped Steam's global top sellers chart shortly after its Season 2 update back in April.
The company's growth outlook also remains constructive, with current Zacks Consensus estimates suggesting 19% EPS growth on nearly 10% higher sales in its current fiscal year. The stock sports a Style Score of 'A' for Growth.
While the revisions trend has been overall negative over the past year, it's changed course in a big way as of late following favorable quarterly results. Analysts started taking their sales expectations higher at the beginning of 2025, not looking back since.
Following its latest release, CEO William Ding stated –
"We entered 2025 with solid momentum, fueled by our ongoing innovation and new titles that strengthen our reach across genres and resonate with players around the world."
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear, fashion handbags, and accessories for women, men, and children across the world.
The stock is currently a Zacks Rank #5 (Strong Sell), with analysts dialing back their EPS expectations significantly over recent months.
SHOO resides in the Zacks – Shoes and Retail Apparel industry, which is currently ranked in the bottom 12% of all Zacks Industries. Let's take a closer look at the company.
SHOO Underperforms
SHOO shares haven't performed well over the past year, down 46% and widely underperforming relative to the S&P 500 and many peers. Shares found some relief following its latest set of quarterly results, but the current EPS outlook doesn't support the price action continuing.
A negative force impacting the stock's performance has been slowing sales growth, with revenues up a minuscule 0.2% year-over-year throughout its latest period. Below is a chart illustrating the company's sales on a quarterly basis.
In addition, the margins picture for Steve Madden has largely turned sour over recent periods, as shown below. The margin impact here is massive given its apparel exposure, an already margin-thin industry for many companies.
Nonetheless, the company remains positive, with CEO Edward Rosenfield stating this after the release –
"We were pleased with our performance in the first quarter, as our team's strong execution of our strategy enabled us to deliver earnings results that significantly exceeded expectations. Looking ahead, we face meaningful near-term headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States.
He continued –
We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth. We believe our agile business model – combined with our fortress balance sheet – gives us a competitive advantage in dynamic environments, and we are optimistic that the current disruption will create opportunities for market share gains over time.'
Bottom Line
Negative earnings estimate revisions, resulting from soft quarterly results and tariff issues, paint a challenging picture for the company's shares in the near term.
Steve Madden is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
GameStop Stock Selloff Explained – Buying Opportunity or Value Trap?
Video game retailer GameStop Corp. shares had unpredictable price swings in 2021 due to a short squeeze, followed by a steady decline. GameStop's shares recently plunged due to lower quarterly revenues and investor dissatisfaction with the company's new capital raise policy. Despite this, the company cut costs and improved profitability. Does GME stock present a good buying opportunity or is it a value trap?
Why GameStop Shares Are Falling
GameStop's latest fundraising initiative led to a drop of over 20% in its share price on Thursday. The video game retailer was planning to raise $1.75 billion in debt financing from investors, its second such move in recent times.
GameStop raised funds for general corporate needs, with investments linked to their Investment Policy. The funds were likely used to buy Bitcoins (BTC), which is consistent with GameStop's policy update in March.
GameStop recently raised funds to purchase 4,710 Bitcoin, valued at more than $500 million. This shift from selling video games to investing in Bitcoin was aimed at enhancing the company's value and increasing liquidity to meet financial needs.
However, GameStop's recent decision to acquire more Bitcoin was not well-received by investors. This is because Bitcoin is a volatile asset; it performs exceptionally well when it continues to rise, but when it drops, it can pose significant risks.
Is the Decline in GameStop Shares a Buy Opportunity?
GameStop is emulating Strategy Inc., previously known as MicroStrategy, which has acquired nearly 530,000 Bitcoins worth more than $45 billion since 2020. Strategy's shares surged over 2,500% in the last five years, benefiting from Bitcoin's bullish trend, particularly post the November Presidential election.
GameStop's investment in Bitcoin could be beneficial, but its impact on revenue growth remains uncertain. In the first quarter of 2025, GameStop's revenues decreased by 17% compared to the previous year. According to the latest SEC filing, GameStop's sales fell by 28% to $3.8 billion in 2024 from $5.3 billion in 2023. The company's revenues decreased due to shifting customer interest from physical to digital video games.
GameStop, though once a meme stock craze of the early 2020s, now lacks revenue growth while facing business challenges. Without new revenue-boosting strategies in place, it's sensible to avoid high-risk investments in GameStop, even though shares are trading at a discount.
Is GameStop a Value Trap Right Now?
Generally, a value trap occurs when a cheaply priced stock has problems like falling earnings and weak management, but this doesn't apply to GameStop.
GameStop faced more troubles during the pandemic as people stayed at home and avoided stores. However, GameStop's management made strategic moves to cut costs and increase profitability by closing stores in various countries like Switzerland, Austria, Ireland, Italy, and the United States. They are now planning to do the same in Canada and France this year.
GameStop posted almost $45 million in profits in the first quarter of 2025, a substantial year-over-year improvement, and has a 29.7% debt-to-equity ratio, lower than the Gaming industry's average of 186.4%, indicating financial stability. This reliance on shareholders' equity over borrowed capital could keep stakeholders interested for potential gains.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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NetEase and Steven Madden have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 16, 2025 – Zacks Equity Research shares NetEase (NTES - Free Report) as the Bull of the Day and Steven Madden (SHOO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on GameStop Corp. (GME - Free Report) and Strategy Inc. (MSTR - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
NetEase is an Internet technology company that develops applications, services, and other technologies for the Internet in China. Analysts have been notably bullish concerning its EPS outlook, raising expectations across the board in a big way over recent months.
The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).
Let's take a closer look at how the company presently stacks up.
NetEase Sees Big Growth
NetEase's quarterly results have been strong over recent periods, enjoying 7% revenue growth year-over-year throughout its latest period.
The stock's success and favorable outlook have been driven by mega-popular games such as Marvel Rivals, which topped Steam's global top sellers chart shortly after its Season 2 update back in April.
The company's growth outlook also remains constructive, with current Zacks Consensus estimates suggesting 19% EPS growth on nearly 10% higher sales in its current fiscal year. The stock sports a Style Score of 'A' for Growth.
While the revisions trend has been overall negative over the past year, it's changed course in a big way as of late following favorable quarterly results. Analysts started taking their sales expectations higher at the beginning of 2025, not looking back since.
Following its latest release, CEO William Ding stated –
"We entered 2025 with solid momentum, fueled by our ongoing innovation and new titles that strengthen our reach across genres and resonate with players around the world."
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Bear of the Day:
Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear, fashion handbags, and accessories for women, men, and children across the world.
The stock is currently a Zacks Rank #5 (Strong Sell), with analysts dialing back their EPS expectations significantly over recent months.
SHOO resides in the Zacks – Shoes and Retail Apparel industry, which is currently ranked in the bottom 12% of all Zacks Industries. Let's take a closer look at the company.
SHOO Underperforms
SHOO shares haven't performed well over the past year, down 46% and widely underperforming relative to the S&P 500 and many peers. Shares found some relief following its latest set of quarterly results, but the current EPS outlook doesn't support the price action continuing.
A negative force impacting the stock's performance has been slowing sales growth, with revenues up a minuscule 0.2% year-over-year throughout its latest period. Below is a chart illustrating the company's sales on a quarterly basis.
In addition, the margins picture for Steve Madden has largely turned sour over recent periods, as shown below. The margin impact here is massive given its apparel exposure, an already margin-thin industry for many companies.
Nonetheless, the company remains positive, with CEO Edward Rosenfield stating this after the release –
"We were pleased with our performance in the first quarter, as our team's strong execution of our strategy enabled us to deliver earnings results that significantly exceeded expectations. Looking ahead, we face meaningful near-term headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States.
He continued –
We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth. We believe our agile business model – combined with our fortress balance sheet – gives us a competitive advantage in dynamic environments, and we are optimistic that the current disruption will create opportunities for market share gains over time.'
Bottom Line
Negative earnings estimate revisions, resulting from soft quarterly results and tariff issues, paint a challenging picture for the company's shares in the near term.
Steve Madden is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
GameStop Stock Selloff Explained – Buying Opportunity or Value Trap?
Video game retailer GameStop Corp. shares had unpredictable price swings in 2021 due to a short squeeze, followed by a steady decline. GameStop's shares recently plunged due to lower quarterly revenues and investor dissatisfaction with the company's new capital raise policy. Despite this, the company cut costs and improved profitability. Does GME stock present a good buying opportunity or is it a value trap?
Why GameStop Shares Are Falling
GameStop's latest fundraising initiative led to a drop of over 20% in its share price on Thursday. The video game retailer was planning to raise $1.75 billion in debt financing from investors, its second such move in recent times.
GameStop raised funds for general corporate needs, with investments linked to their Investment Policy. The funds were likely used to buy Bitcoins (BTC), which is consistent with GameStop's policy update in March.
GameStop recently raised funds to purchase 4,710 Bitcoin, valued at more than $500 million. This shift from selling video games to investing in Bitcoin was aimed at enhancing the company's value and increasing liquidity to meet financial needs.
However, GameStop's recent decision to acquire more Bitcoin was not well-received by investors. This is because Bitcoin is a volatile asset; it performs exceptionally well when it continues to rise, but when it drops, it can pose significant risks.
Is the Decline in GameStop Shares a Buy Opportunity?
GameStop is emulating Strategy Inc., previously known as MicroStrategy, which has acquired nearly 530,000 Bitcoins worth more than $45 billion since 2020. Strategy's shares surged over 2,500% in the last five years, benefiting from Bitcoin's bullish trend, particularly post the November Presidential election.
GameStop's investment in Bitcoin could be beneficial, but its impact on revenue growth remains uncertain. In the first quarter of 2025, GameStop's revenues decreased by 17% compared to the previous year. According to the latest SEC filing, GameStop's sales fell by 28% to $3.8 billion in 2024 from $5.3 billion in 2023. The company's revenues decreased due to shifting customer interest from physical to digital video games.
GameStop, though once a meme stock craze of the early 2020s, now lacks revenue growth while facing business challenges. Without new revenue-boosting strategies in place, it's sensible to avoid high-risk investments in GameStop, even though shares are trading at a discount.
Is GameStop a Value Trap Right Now?
Generally, a value trap occurs when a cheaply priced stock has problems like falling earnings and weak management, but this doesn't apply to GameStop.
GameStop faced more troubles during the pandemic as people stayed at home and avoided stores. However, GameStop's management made strategic moves to cut costs and increase profitability by closing stores in various countries like Switzerland, Austria, Ireland, Italy, and the United States. They are now planning to do the same in Canada and France this year.
GameStop posted almost $45 million in profits in the first quarter of 2025, a substantial year-over-year improvement, and has a 29.7% debt-to-equity ratio, lower than the Gaming industry's average of 186.4%, indicating financial stability. This reliance on shareholders' equity over borrowed capital could keep stakeholders interested for potential gains.
For now, GameStop has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.