A Fool Looks Back

Wal-Mart (NYSE: WMT  ) has always been a place to get cheap products, but now it wants to get even cheaper for diehard gamers. The world's largest retailer announced this week that it will begin accepting used video games as trade-ins that can be exchange for store credit. Later this year the discounter will begin selling the refurbished games at its stores.

This isn't welcome news for video-game developers and publishers. They don't cash in on a resale, and Wal-Mart's deal-seeking shoppers will encourage more gamers to buy secondhand wares. 

One stock that took Wal-Mart's announcement even harder than the publishers was GameStop (NYSE: GME  ) . Selling used games and gear has become a lucrative business for the video game retailer, even though sales have been declining for the past two years. This obviously isn't going to be good news for GameStop, especially if Wal-Mart is aggressive in what it offers gamers on trade-ins and what it sells them for the second time around.

Briefly in the news
And now let's look at some of the other stories that shaped our week.

  • Darden Restaurants  (NYSE: DRI  )  can't seem to get its marquee concepts on tracks. The company posted another sharp decline in profitability as Olive Garden and Red Lobster suffered another slide in quarterly comps. Darden's already looking to unload Red Lobster, but that only means Olive Garden will have to carry more of the load until Darden's younger concepts grow to the point where they can move the needle.
  • FedEx  (NYSE: FDX  ) didn't deliver the goods on either end of the income statement. The parcel delivery specialist posted quarterly results in which both revenue and earnings fell short of Wall Street expectations.  
  • Tesla Motors (NASDAQ: TSLA  ) got a downgrade this week, from "buy" to "hold," from Deutsche Bank. The analyst is offering up a target range between $200 and $220

Learning from the past helps you spot hot trends in the future
Every investor wants to get in on revolutionary ideas before they hit it big -- like buying PC maker Dell in the late 1980s, before the consumer computing boom, or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hypergrowth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive fashion within its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2885936, ~/Articles/ArticleHandler.aspx, 9/1/2015 12:25:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated 3 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:01 PM
GME $42.48 Down -0.01 -0.02%
GameStop CAPS Rating: *
WMT $64.73 Down -0.21 -0.32%
Wal-Mart Stores CAPS Rating: ***
DRI $68.01 Down -1.04 -1.51%
Darden Restaurants… CAPS Rating: ***
FDX $150.61 Down -1.89 -1.24%
FedEx CAPS Rating: ****
TSLA $249.06 Up +0.58 +0.23%
Tesla Motors CAPS Rating: **