Corsair (NASDAQ:CRSR) is one of many meme favorites in Feb. At the time, the PC gaming supplier attracted novice investors at the height of the pandemic. Speculators thought that PC sales would keep rising as more people stayed at home and worked from home, too.
Last week, Corsair trimmed its 2021 revenue guidance. The firm now expects revenue of $1.825 billion to $1.925 billion. When it releases results, it will post operating income and EBITDA. Corsair blamed at least 10% of the net revenue drop is due to global logistics and supply chain issues.
However, 2021 is a strong year, Q3 business slowed. Corsair said that it saw a return to more seasonal ordering patterns. Short-sellers who bet on Corsair got it right. The stock has limited upside for now.
Investors who saw Logitech (NASDAQ:LOGI) slip from highs could have anticipated the CRSR stock drop. Plus, streaming gaming time fell months ago.
China cracked down on the number of gaming teens may spend online to three hours a week. This will indirectly hurt the gaming market. Should the player base fall and more people return to the work office, Corsair’s growth prospects would weaken.