by Ian Harvey
November 23, 2020
Video game hardware and peripherals maker Corsair Gaming Inc (NASDAQ: CRSR) stock continues to surge after beating the estimates in its first earnings report; and is also benefiting from the growth of esports and the home entertainment boom spurred by the Covid-19 pandemic.
Stock Options Made Easy “Mentorship”Members are already well positioned to continue profiting from CRSR’s growth; already up 368%.
How high will the stock trade?
Shares of Corsair have more than doubled in value since the initial public offering (IPO) in September. While Corsair operates in a highly competitive market, its latest earnings results show a business with a lot of growth potential.
Casual gamers are starting to see their hobby as a means to socialize while playing and engage with viewers through chat during a broadcast. It's a market that is going viral, and Corsair Gaming is in the moment.
About Corsair Gaming ……
Corsair makes high-end gaming peripherals such as headsets, keyboards, mice and controllers. It also sells PC components such as memory, cooling systems and power supplies as well as full gaming PC systems. Plus, it sells livestreaming gear for content creators.
Why The Surge For Corsair Gaming.....
Live game streaming has emerged as a mainstream social network for millions of gamers. Gamers spent a total of 12 billion hours watching gaming content in 2019.
These trends explain why Corsair's revenue skyrocketed last quarter, jumping 60% year over year. This was primarily driven by strong demand for gaming and streaming products, including keyboards, mice, headsets, capture cards, and other studio accessories. The gamer and creator peripherals segment grew revenue by 129% year over year, making up 35% of Corsair's total revenue.
Corsair Gaming is also benefiting from millions of gamers who are upgrading their gaming PCs with new components, such as power supply units, cooling solutions, and DRAM modules. The gaming components and systems segment grew 38% year over year and comprised 65% of total revenue.
YOU NEED TO BE IN TO PROFIT!
Let’s Have A Look At The Recommendation…..
……that was executed by “Mentorship Members” on Thursday, November 12, 2020…..and find out why we have a call options trade on Corsair Gaming shares.
** OPTION TRADE: Buy CRSR DEC 18 2021 30.000 CALLS at approximately $2.90. (actually bought for $2.55)
“Video game hardware and peripherals maker Corsair Gaming Inc (NASDAQ: CRSR) on Tuesday easily beat Wall Street's targets for the third quarter and guided higher for the holiday quarter. The Corsair earnings report pushed CRSR stock higher.
The Fremont, Calif.-based company earned an adjusted 54 cents a share on sales of $457.1 million in the September quarter. Analysts expected Corsair earnings of 28 cents a share on sales of $400.1 million. In the year-earlier period, Corsair earnings were 13 cents a share on sales of $284.4 million.
"This was a great quarter for us," Chief Executive Andy Paul said in the Corsair earnings news release. "Consumers continue to learn more about high-performance gaming and streaming gear and are upgrading."
He added, "This last quarter was one with very strong demand, with many major retailers running out of stock of our gear."
Corsair Gaming is now trading at roughly double of its low during its trading debut in September.”
CONTACT US AND GET A SPECIAL PRICE ON OUR MEMBERSHIPS!
Management believes the market for its products could multiply if current trends continue in gaming.
The growing popularity of professional gaming, or esports, and the growth of live game streaming are already encouraging casual gamers to up their game.
To capitalize on this opportunity, Corsair Gaming recently announced the acquisition of Gamer Sensei, a top platform for esports coaching. And this could develop into a sizable market for Corsair to cross-sell its products.
The Analyst Upgrades.....
After the earnings report, many of the analysts initiated coverage of Corsair stock with buy ratings.
"Corsair has a solid niche in what otherwise appears to be a commodity business," Wedbush Securities analyst Michael Pachter said in a note to clients. "Unlike many of its larger competitors, Corsair is firmly focused on the gaming segment, with the vast majority of its sales coming from a small, but dedicated base of hard-core gamers."
Although the gaming market is crowded Corsair Gaming has been around for a few decades and has already earned a top-three U.S. market share spot across most of its product lines. That reveals brand power, which is the most important advantage in this market.
Corsair has successfully expanded into new product categories over time, including console controllers and prebuilt gaming PCs and laptops. It plans to continue looking for opportunities to expand its offerings, which suggests that Corsair could see its addressable market expand.
Will Corsair Gaming Shares Continue To Rise?
Should Members Exit The Trade Now Or Continue To Hold?
Is There Still An Opportunity To Enter The Trade and Profit?
What Other Trades Are We Anticipating?
Do You Wish To Be Part Of This Action?
Join us here at Stock Options Made Easy, and find out our trades moving forward.
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!