Please ensure Javascript is enabled for purposes of website accessibility

A Fool Looks Back

By Rick Munarriz – Mar 22, 2014 at 6:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Let's take a look back at the news that made waves.

Wal-Mart (WMT -0.39%) 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 (GME 0.65%). 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 (DRI 0.44%) 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 (FDX 0.28%) 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 (TSLA -1.37%) 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.

Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends FedEx and Tesla Motors and owns shares of GameStop and Tesla Motors. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.