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Corsair Shared These Updates About the PC Market

By Jose Najarro – Nov 3, 2021 at 10:00AM

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Can this be bullish news for companies that sell graphic cards?

Today's video focuses on Corsair's (CRSR -0.13%) recent earnings, reported on Nov. 2, before the market opened. Corsair's revenue saw a substantial decline year over year (YOY), causing its stock price to remain flat after earnings. Here are some highlights from the video. 

  1. Corsair reported revenue of $391 million, down 14% YOY and down 17% quarter over quarter (QOQ). The decline in revenue was driven by a slowdown in its gaming component and systems segment and its gamer and creator peripheral segment. 
  2. Management believes that a substantial reason for the decrease in revenue is the low availability and high cost of graphics cards, which has caused customers to build fewer computers. Fewer computers being built means fewer Corsair components being sold.
  3. Graphics cards could become available in the upcoming quarters, which may serve as a tailwind for Corsair. Corsair expects growth of 7% to 13% for the entire year, much lower than the growth seen last year.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Nov. 2, 2021. The video was published on Nov. 2, 2021.

 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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