Even though Corsair Gaming (CRSR) has introduced and upgraded several products over the past few months, the stock has declined in price significantly. So, let’s find out if it is wise to buy the dip in the stock despite the company’s pedestrian financials. Read on.Corsair Gaming, Inc. (CRSR) in Fremont, Calif., is one of the leading global developers and manufacturers of high-performance gear and technology for gamers, content creators, and PC enthusiasts, having shipped roughly 190 million gaming and streaming products. It has been consistent in developing product innovations, and the increased demand for computer gaming equipment amid the COVID-19 pandemic helped boost its sales.
However, the stock has declined 29.7% in price year-to-date and 7.5% over the past month to close yesterday’s trading session at $25.46.
CRSR is currently trading 50.4% below its 52-week high of $51.37, which it hit on November 24, 2020. Higher-than-expected logistics costs negatively impacted CRSR in the second q, and its logistics costs are expected to remain elevated in the third quarter. Moreover, its revenue is expected to be affected by global logistics and supply chain issues, especially by the lack of affordable GPUs in the retail channel. Consequently, the company has cut its full-year 2021 revenue guidance to $1.83-$1.93 billion from $1.90-$2.10 billion So, CRSR’s near-term prospects look uncertain.