Is GameStop finally going out of business?
The video game retailer has struggled in recent years, especially during the COVID-19 pandemic and spring lockdowns. Don’t worry; GameStop isn’t going out of business, and customers of stores that are closing will soon get some liquidation sales.
Is GameStop in financial trouble?
The world’s biggest video game retailer, GameStop, is in serious trouble. In the past 12 months, the company’s stock value has dropped by two-thirds — from about $15 in January 2019 to under $5 by…
Is GameStop headed for bankruptcy?
GameStop, the video game retailer, is heading into its final days with a potential bankruptcy in its future. While the pandemic was not the cause of the company’s demise, it did come as the final straw for its already weak balance sheet.
Is GameStop still a good investment?
Though GameStop might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a …
What is the Motley Fool’s recommendation for 2021?
The Motley Fool owns shares of and recommends Amazon, Microsoft, Moody’s, and Netflix and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.
When did GameStop stock double?
GameStop stock more than doubled between January and October of 2013, as anticipation built for the launch of the current generation of PlayStation and Xbox consoles. GameStop Stock Performance, data by YCharts. Even if the trend toward downloaded games mutes this growth, GameStop can still benefit.
Is GameStop going bankrupt?
Despite a tenuous outlook, GameStop is still unlikely to go bankrupt.
Is GameStop going to grow in 2023?
For now, analysts forecast a 4.11% compound annual growth rate through 2023 in the gaming console market. GameStop could also continue to attract business for a reason urbanites may forget — broadband access. According to the FCC, approximately 19 million rural Americans still lack access to fixed broadband.
Is GameStop struggling to survive?
The fact that Amazon could offer a larger selection was another indication of looming problems. However, Game Stop did not adapt, and it now finds itself struggling to survive.
Who is John Mackey?
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
Who is Will Healy?
Will Healy is a freelance financial writer who has had a lifelong interest in the stock market, along with numerous, less-useful pursuits. Will pursued his passion for writing after working in the corporate world as both an analyst and an insurance sales professional.
Why is GameStop struggling?
GameStop is struggling because streaming has become the cornerstone of the gaming experience. Bankruptcy is a stretch, but a buyout is possible. | Source: Shutterstock. GameStop was, at one time, one of the premier names in gaming. Some say it still is.
How many articles has Lawrence Meyers written?
Lawrence Meyers: Lawrence Meyers has published over 2,500 articles on finance and policy at outlets including Breitbart.com, Investorplace, WyattResearch, LearnBonds, Lifezette.com, TownHall.com, U.S. News & World Report, and The New York Observer. He hails from New York City in the USA.
Why are there fewer used games on GameStop?
But in the past few years, that trend has changed because of the new game situation. People who purchase new games via a digital platform don’t have hard copies to sell back to GameStop, and therefore there are fewer used games to sell.
Is GameStop getting killed?
GameStop is getting killed in the purchase of new games via digital platforms and streaming. To that end, it’s the same problem every retailer has been facing the past 10 years: digital purchases vs. brick-and-mortar.
Is GameStop going bankrupt?
GameStop will likely have to suspend or eliminate the $157 million in annual dividends it pays to stay afloat. Fortunately, it also has $1.624 billion of cash on hand and $471 million in long-term debt, so bankruptcy is not in the cards.
Who owns GameStop?
A Crumbling Empire. Perhaps best-known as the company that innovated the buy-sell-trade model in 2000, GameStop was owned by Barnes & Noble before being spun-off in 2004. By 2008, it had achieved a market cap of some $6 billion.
Is GameStop declining?
Overall revenues have been declining; even in years when it rises, the cost of revenue rises as well, as do other expenses. GameStop’s core business is dying. The market doesn’t have confidence in the company’s future. There have also been several CEOs that can’t quite figure out how to turn the company around.
Why is GameStop stock going down?
Speculative names, including meme stocks, have been out of favor with markets. There also seems to be a sense of disillusionment and disenchantment among retail investors holding meme stocks. These stocks required continued buying support from retail traders amid the lack of buying interest from institutional investors.
GameStop has closed several stores
GameStop has been working on a de-densification strategy. As part of that initiative, the company permanently closed 449 stores between October 2020 and October 2021. GameStop has been strengthening its e-commerce business and a large part of its sales are now online.
GameStop isn’t going out of business anytime soon
Gaming retail isn’t as lucrative a business as it was a decade ago. Gaming has moved online and a lot of people have also been buying gadgets and gaming consoles online. Many bears use this argument to point out that GameStop will go out of business sooner or later.
GameStop doesn’t face bankruptcy risk
GameStop is now a debt-free company and had cash and cash equivalents of $1.4 billion at the end of October 2021. The company used the spike in its stock to raise cash, which has strengthened its balance sheet.
GameStop is hiring talent and moving to new businesses
GameStop has been hiring a lot of tech talent. It has also been looking to explore opportunities in NFT, blockchain, and Web 3.0 gaming. A few years from now, GameStop will be a different company than we have been used to seeing it over the years.
What is a short-ladder attack?
A short-ladder attack i s a strategy performed by short-sellers where they bid on the stock at a significantly lower sell price and purchase it from one another.
Will GameStop stock go up again?
As long as the stock continues to be shorted and held, GameStop can expect a series of gamma squeezes to continue pushing the stock up.
What is shorting a stock?
Shorting a stock is the process by which sellers essentially bet on the stock price to drop. They borrow stocks at a higher cost and sell the stock low, profiting the difference.
What is short selling?
Short-sellers are investors who short the stock. Shorting a stock is the process by which sellers essentially bet on the stock price to drop. They borrow stocks at a higher cost and sell the stock low, profiting the difference. How short selling works.
What is Roensch Capital?
Roensch Capital goes over the data for trending stocks. The information is very easy to understand and gives you insight in the market from an analysts perspective.
What is FOMO in stocks?
FOMO (fear of missing out) continues to bring in new retail investors which is a great driving factor to the stocks volume.
What to ask yourself when holding a position in GameStop?
If you hold a position in GameStop, it’s important that you ask yourself what your reason for holding is. Does your DD provide you with the confidence to stick to it longer if need be? If so, stick to your convictions and trust the process.
Why is Naturalizer so sluggish?
According to Retail Dive, the company’s SVP and CFO, Kenneth Hannah, cites the pandemic as the primary cause of Naturalizer’s sluggish earnings. "We went from stores that were generating [a] decent amount of revenue and obviously that reduction [in foot traffic] has put a lot of pressure on the bottom line ," Hannah said. "Now is just a good time to go ahead and exit."
How many stores are there at Children’s Place in 2021?
The Children’s Place put 200 storefront locations on the chopping block this year, and they’ve recently announced more cuts for 2021. The company has plans to nix another 100 stores over the coming year—their response to a 22 percent drop in net sales amid the pandemic.
How much did the gaming industry lose in 2019?
In 2019, the company began a slight rebound, losing a lesser sum of $83 million.
When will GameStop close?
December 12, 2020. Shutterstock. GameStop, the largest video game retailer in the world, is headed for some serious trouble. After a years-long downward spiral into debt, the company announced in a Dec. 8 presentation to investors that it will close more than 1,000 stores by the end of its fiscal year in March.
Who owns GameStop?
These offered digital storefronts owned and operated by Microsoft and Sony, which allowed customers to purchase their games directly through their consoles rather than visiting a retailer in person. GameStop was dealt a second blow when in 2016, the company invested in 1,500 Spring Mobile and AT&T mobile phone stores.
Is Abercrombie and Fitch closing?
Reigning clothing king of the ’90s and ’00s Abercrombie & Fitch is closing some of its largest flagship stores by the end of Jan. 2021. These are located across Western Europe in London, England; Dusseldorf, Germany; Munich, Germany; and Paris, France. Representatives have shared that the closures are part of a new global strategy that the company had determined in 2018, and are not the direct result of the pandemic. And for more surprising store closures, check out This Iconic Clothing Chain Is Closing Its Biggest Stores.
Is Columbia Sportswear closing?
Popular outdoor apparel company Columbia Sportswear has decided to close a swath of stores nationwide after a 23 percent drop in revenue this year.