Why Corsair Gaming Stock Is Trading Lower Friday
Portfolio Pulse from Dylan Berman
Corsair Gaming, Inc. (NASDAQ:CRSR) shares are trading lower following preliminary Q2 results that missed analyst estimates. The company reported revenue of $261 million versus the expected $319.977 million. CEO Andy Paul cited weaker-than-expected demand for high-end custom gaming PCs and reduced channel inventory as reasons for the shortfall. Baird analyst Colin Sebastian maintained a Neutral rating but lowered the price target from $14 to $10. The company will release its full Q2 results on August 1.
July 19, 2024 | 5:29 pm
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NEGATIVE IMPACT
Corsair Gaming's preliminary Q2 revenue of $261 million fell short of the $319.977 million estimate, leading to an 11.8% drop in share price. CEO Andy Paul attributed the miss to weaker demand for high-end custom gaming PCs and reduced channel inventory. Analyst Colin Sebastian maintained a Neutral rating but lowered the price target from $14 to $10.
The significant miss in revenue estimates and the CEO's comments on weaker demand and reduced channel inventory have led to a sharp decline in the stock price. The lowered price target by an analyst further adds to the negative sentiment.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100