Why PlayStudios (MYPS) Shares Are Trading Lower Today

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Sonos and the best and worst performers in the consumer discretionary industry.

This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.

The 147 consumer discretionary stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% above.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Sonos

A pioneer in connected home audio systems, Sonos offers a range of premium wireless speakers and sound systems.

Sonos reported revenues of $287.9 million, up 12.7% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

“Q4 marked a strong finish to a transitional year for Sonos,” said Tom Conrad, Chief Executive Officer of Sonos.

Interestingly, the stock is up 1.7% since reporting and currently trades at $16.69.

Best Q3: American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, outperforming analysts’ expectations by 12.3%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 7.2% since reporting. It currently trades at $8.28.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 30.5% since the results and currently trades at $0.63.

Read our full analysis of PlayStudios’s results here.

Newmark

Founded in 1929, Newmark provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.

Newmark reported revenues of $863.5 million, up 25.9% year on year. This result topped analysts’ expectations by 11.8%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is down 5.6% since reporting and currently trades at $17.58.

Read our full, actionable report on Newmark here, it’s free for active Edge members.

AMC Networks

Originally the joint-venture of four cable television companies, AMC Networks is a broadcaster producing a diverse range of television shows and movies.

AMC Networks reported revenues of $561.7 million, down 6.3% year on year. This print surpassed analysts’ expectations by 2.7%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 23.4% since reporting and currently trades at $8.95.

Read our full, actionable report on AMC Networks here, it’s free for active Edge members.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary industry, including Apple and its peers.

This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.

The 152 consumer discretionary stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% above.

In light of this news, share prices of the companies have held steady as they are up 2% on average since the latest earnings results.

Apple

Creator of the iPhone and App Store, Apple is a legendary developer of consumer electronics and software.

Apple reported revenues of $102.5 billion, up 7.9% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a strong quarter for the company with We were also happy its revenue narrowly outperformed Wall Street’s estimates, and the beat in Services was a bright spot.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $271.01.

We think Apple is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, outperforming analysts’ expectations by 12.3%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $7.92.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 26.6% since the results and currently trades at $0.67.

Read our full analysis of PlayStudios’s results here.

Funko

Boasting partnerships with media franchises like Marvel and One Piece, Funko is a company specializing in creating and distributing licensed pop culture collectibles.

Funko reported revenues of $250.9 million, down 14.3% year on year. This print came in 4.2% below analysts' expectations. Zooming out, it was actually a very strong quarter as it recorded a beat of analysts’ EPS and EBITDA estimates.

The stock is up 10.9% since reporting and currently trades at $3.35.

Read our full, actionable report on Funko here, it’s free for active Edge members.

Latham

Started as a family business, Latham is a global designer and manufacturer of in-ground residential swimming pools and related products.

Latham reported revenues of $161.9 million, up 7.6% year on year. This result missed analysts’ expectations by 1.8%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

The stock is down 12.1% since reporting and currently trades at $6.33.

Read our full, actionable report on Latham here, it’s free for active Edge members.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Peloton and the rest of the consumer discretionary stocks fared in Q3.

This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.

The consumer discretionary stocks we track reported a satisfactory Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Luckily, consumer discretionary stocks have performed well with share prices up 25.2% on average since the latest earnings results.

Peloton

Started as a Kickstarter campaign, Peloton is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.

Peloton reported revenues of $550.8 million, down 6% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

"In this quarter leading up to the launch of our new equipment lineup and Peloton IQ, our team once again demonstrated the power of disciplined execution and focus," said Peloton CEO Peter Stern.

Peloton delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 2% since reporting and currently trades at $6.25.

Best Q3: American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, outperforming analysts’ expectations by 12.3%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $8.35.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 23.4% since the results and currently trades at $0.70.

Read our full analysis of PlayStudios’s results here.

G-III

Founded as a small leather goods business, G-III is a fashion and apparel conglomerate with a diverse portfolio of brands.

G-III reported revenues of $988.6 million, down 9% year on year. This print missed analysts’ expectations by 2.3%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ Wholesale revenue estimates.

The stock is up 6.5% since reporting and currently trades at $31.59.

Read our full, actionable report on G-III here, it’s free for active Edge members.

fuboTV

Originally launched as a soccer streaming platform, fuboTV is a video streaming service specializing in live sports, news, and entertainment content.

fuboTV reported revenues of $377.2 million, down 2.3% year on year. This number topped analysts’ expectations by 4.9%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 30.6% since reporting and currently trades at $2.63.

Read our full, actionable report on fuboTV here, it’s free for active Edge members.

What Happened?

A number of stocks fell in the afternoon session after new economic data intensified market agitation ahead of the Federal Reserve's policy decision later in the week. 

According to the Bureau of Economic Analysis, real consumer spending, which is adjusted for inflation, stalled in September, marking its weakest performance in four months. Compounding the issue, the University of Michigan's consumer sentiment index, while slightly improved, remained gloomy, with one economist noting that many households faced affordability issues forcing them to be more cautious. This pressure on consumers was reflected in the market, where the Consumer Discretionary sector was among the leading decliners. The broader economic picture showed other signs of caution, as new orders for U.S. factory goods also increased less than anticipated. These indicators collectively suggest a widening slowdown across both consumer and industrial sectors as the Federal Reserve prepared to announce its final policy actions for the year.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Gaming Solutions company PlayStudios fell 2.6%. Is now the time to buy PlayStudios? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Oxford Industries fell 3.3%. Is now the time to buy Oxford Industries? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Marriott Vacations fell 3.3%. Is now the time to buy Marriott Vacations? Access our full analysis report here, it’s free for active Edge members.
• Toys and Electronics company Mattel fell 3.9%. Is now the time to buy Mattel? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company Kontoor Brands fell 3.6%. Is now the time to buy Kontoor Brands? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Mattel (MAT)

Mattel’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 4.8% on the news that the company presented at the Morgan Stanley Global Consumer & Retail Conference, where its leadership shared business updates. The company's Executive Chairman & CEO, Ynon Kreiz, and its Chief Financial Officer, Paul Ruh, participated in the event. Presentations at such conferences often contain forward-looking statements that can influence investor views on a company's future performance. This news followed Mattel's re-introduction of Uno Braille a day earlier. The new edition of the popular card game was designed so that blind or low-vision players could enjoy it, showing the company's commitment to making its products more accessible to everyone.

Mattel is up 15.3% since the beginning of the year, and at $20.44 per share, it is trading close to its 52-week high of $21.94 from February 2025. Investors who bought $1,000 worth of Mattel’s shares 5 years ago would now be looking at an investment worth $1,267.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Rush Street Interactive and the best and worst performers in the gaming solutions industry.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 7 gaming solutions stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 4.3% on average since the latest earnings results.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income and EPS estimates.

Richard Schwartz, Chief Executive Officer of RSI, said, "We’re pleased to report another strong quarter that underscores the resilience of our business model and player-first approach. Our third quarter results demonstrate continued momentum and acceleration of growth across key markets, led by our continued outperformance in the online casino space. Another quarter of record revenue, up 20% year-over-year, marks our tenth consecutive quarter of sequential revenue growth over the prior quarter. This growth was driven by record player acquisition and strong player engagement across our higher-value markets.

Rush Street Interactive achieved the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 1.3% since reporting and currently trades at $18.40.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

Inspired

Specializing in digital casino gaming, Inspired is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $86.2 million, up 11.7% year on year, outperforming analysts’ expectations by 3.9%. The business had a satisfactory quarter with a beat of analysts’ EPS estimates but a miss of analysts’ Virtual Sports revenue estimates.

The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $8.06.

Is now the time to buy Inspired? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth in the group. The company reported 2.21 million monthly active users, down 25.3% year on year. As expected, the stock is down 28.3% since the results and currently trades at $0.65.

Read our full analysis of PlayStudios’s results here.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This number beat analysts’ expectations by 0.5%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 1.9% since reporting and currently trades at $10.12.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

DraftKings

Getting its start in daily fantasy sports, DraftKings is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.14 billion, up 4.4% year on year. This print came in 5.6% below analysts' expectations. Overall, it was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

DraftKings achieved the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 13% since reporting and currently trades at $31.72.

Read our full, actionable report on DraftKings here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Gaming Solutions company PlayStudios jumped 5.8%. Is now the time to buy PlayStudios? Access our full analysis report here, it’s free for active Edge members.
• Consumer Electronics company Sonos jumped 6%. Is now the time to buy Sonos? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Travel + Leisure jumped 5.7%. Is now the time to buy Travel + Leisure? Access our full analysis report here, it’s free for active Edge members.
• Gaming Solutions company Inspired jumped 5.8%. Is now the time to buy Inspired? Access our full analysis report here, it’s free for active Edge members.
• Home Furnishings company Mohawk Industries jumped 5.9%. Is now the time to buy Mohawk Industries? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Sonos (SONO)

Sonos’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 17 days ago when the stock dropped 3.5% on the news that markets became increasingly wary of high valuations following a significant AI-driven rally. The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market. A key example of this trend is Palantir Technologies, which saw its shares drop around 7% despite reporting record quarterly results that surpassed analyst estimates and raising its full-year revenue outlook. This seemingly contradictory movement highlighted a broader sentiment shift. Investors appeared to be engaging in profit-taking, concerned that the recent surge in AI-related stocks had led to stretched valuations. This broader market caution affected high-growth technology companies that had previously surged on AI optimism but faced increased scrutiny, signaling a potential cooling-off period for the sector. Adding serious weight to this caution, leadership at both Goldman Sachs and Morgan Stanley highlighted the possibility of a correction in the equity markets over the next couple of years.Despite the euphoria driven by AI optimism and the promise of future rate cuts, these banks viewed this cooling-off period not as a disaster, but as a necessary and healthy feature of a long-term bull market.

Sonos is up 13.8% since the beginning of the year, and at $16.78 per share, it is trading close to its 52-week high of $18.04 from October 2025. Investors who bought $1,000 worth of Sonos’s shares 5 years ago would now be looking at an investment worth $782.42.