Dave & Buster's (PLAY) Stock Trades Up, Here Is Why

What Happened?

Shares of arcade company Dave & Buster’s (NASDAQ:PLAY) jumped 14.8% in the afternoon session after the company reported first-quarter 2025 results and provided encouraging updates on sales trends, as revenue came in line with expectations. 

The company noted improved momentum following the reintroduction of the Eat & Play combo, adjustments to menu pricing, and changes to the incentive structure for store managers. Additionally, free cash flow turned positive, which is a significant boost as management attempts to turn around the business. 

Given that markets are forward-looking, the stock's reaction suggests investors were able to look past the bottom line weakness during the quarter as operating profits and earnings fell short of Wall Street's estimates.

The shares closed the day at $30.46, up 17.7% from previous close.

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What The Market Is Telling Us

Dave & Buster’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. But moves this big are rare even for Dave & Buster's and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 15 days ago when the stock gained 5.5% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.

Dave & Buster's is down 0.5% since the beginning of the year, and at $30.14 per share, it is trading 40.1% below its 52-week high of $50.35 from June 2024. Investors who bought $1,000 worth of Dave & Buster’s shares 5 years ago would now be looking at an investment worth $2,060.

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