Arcade company Dave & Buster’s (NASDAQ:PLAY) fell short of the market’s revenue expectations in Q2 CY2025, with sales flat year on year at $557.4 million. Its non-GAAP profit of $0.40 per share was 56.6% below analysts’ consensus estimates.
A number of stocks fell in the afternoon session after a significant downward revision of U.S. job creation data raised concerns about the health of the economy.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Shares of arcade company Dave & Buster’s (NASDAQ:PLAY) fell 2.6% in the afternoon session after investors reacted to broader market concerns about the health of the U.S. job market.
Shares of arcade company Dave & Buster’s (NASDAQ:PLAY) fell 3.7% in the afternoon session after the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Shares of arcade company Dave & Buster’s (NASDAQ:PLAY) fell 3.1% in the afternoon session after Truist Securities lowered its price target on the stock ahead of the company's upcoming earnings report.
Shares of arcade company Dave & Buster’s (NASDAQ:PLAY) jumped 4% in the afternoon session after a broad market rally fueled by signals of an imminent interest-rate cut from the Federal Reserve. Federal Reserve Chair Jerome Powell's speech signaled a potential interest-rate cut in September, sparking the strongest cross-asset rally since April. This dovish shift in focus toward the jobs market sent major indices soaring, with the S&P 500 climbing 1.7% and the Russell 2000 index of smaller companies jumping 4%. The broad positive market sentiment provided a significant tailwind for stocks like Dave & Buster's. Adding to the upbeat mood, the company announced the grand opening of a new 22,000 sq. ft. location in Mumbai, India, marking another milestone in its international expansion strategy.
A number of stocks fell in the morning session after markets continued to decline, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines. Investors have grown wary that the sharp rally in the tech sector since April may have advanced too far. The market-wide caution is largely driven by the upcoming Jackson Hole symposium, a meeting of central bankers, where traders are anxiously awaiting Fed Chair Powell's speech on Friday for guidance on the future path of interest rates.
A number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
