GameStop Corp.
NASDAQ: GMEKey stats
Price chart
About GameStop Corp.
Retail
Company profile
- IPO date
- Feb 12, 2002
- Website
- news.gamestop.com
Consumer Discretionary peers
How GME compares to other large companies in the same sector.
| Company | Price | Today | Market cap | P/E |
|---|---|---|---|---|
 AMZN Amazon.com Inc. | $238.40 | +2.03% | $2.56T | 32.95 |
 TSLA Tesla Inc. | $348.97 | +0.97% | $1.31T | 345.13 |
 HD Home Depot Inc. | $337.36 | -0.65% | $335.99B | 23.74 |
 MCD McDonald's Corporation | $305.70 | -1.24% | $217.15B | 25.36 |
 SBUX Starbucks Corporation | $96.62 | -0.31% | $110.06B | 80.39 |
Wall Street analyst ratings
DollarScout analysis
Editorial, not advice. See our methodology.
Bull case
GameStop has a recognizable brand with a loyal customer base, which helps maintain a competitive advantage. The company is focusing efforts on transforming its operations by moving towards digital sales and expanding its e-commerce capabilities, which could increase margins and stabilize revenues. The gaming industry itself is large and continues to grow, providing long-term opportunities for companies willing to adapt. With a P/E ratio of 24.88, some investors might view GME's valuation as justified if they believe in its successful transformation and growth prospects. The recent neutral price trend signals that the stock may not have severely deviated from its fair value, possibly indicating stabilization post-volatility.
Bear case
GameStop operates in a highly competitive and rapidly changing sector where physical retail stores face continuous pressure from digital downloads and gaming subscriptions. Giants like Amazon and Best Buy offer fierce competition in both gaming hardware and software distribution. Despite its high market cap of $10.41B, the current analyst consensus is 'sell', which may reflect skepticism about its transformation efforts. The P/E ratio of 24.88 could be perceived as high for a company in transition, posing risks given its current operational challenges. Additionally, the high beta of 1.9323 suggests significant volatility, which could deter risk-averse investors.
Who should buy GME
GME is suitable for aggressive investors with a high risk tolerance who are optimistic about the company's turnaround strategy and future in digital sales and e-commerce within the gaming industry. Short-term traders who thrive on volatility might also see potential here, given the stock's recent price neutrality and historical trading swings.
Key risks
- Competition from digital platforms and big-box retailers. - Uncertainty surrounding the success of its business transformation. - High stock volatility indicated by its beta of 1.9323. - Potential overvaluation concerns with a P/E ratio of 24.88.
Where to buy GME
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Recent GME news
GameStop has become more reasonably priced, but don't buy it just yet.
In recent days, GameStop has reported improved fourth-quarter profitability through tighter cost controls while continuing to face revenue declines, store closures, and limited traction for its NFT marketplace strategy. At the same time, the company is reportedly exploring a potentially transformational acquisition of a larger consumer business, drawing sharp skepticism from high-profile investors who question whether such a deal can offset its structurally challenged retail model. With...
What companies could make sense in an acquisition?
Why GameStop Is Back on Investors’ Radar GameStop (GME) is attracting fresh attention as investors reassess the stock’s recent performance, including a decline over the past month and a gain over the past 3 months, relative to its current market value. See our latest analysis for GameStop. At a share price of $23.43, GameStop’s recent 7 day and 90 day share price returns of 1.69% and 10.05% contrast with a 1 year total shareholder return of 1.35%. This suggests momentum has been building more...
Renowned investor Steve Eisman is rejecting the idea that GameStop Corp. is a value stock, dismissing hopes that the video game retailer can successfully pivot its business through major acquisitions. A ‘Pipe Dream’ Strategy Despite retail investors and high-profile figures like Michael Burry pointing to GameStop’s massive war chest as a catalyst for future growth, Eisman remains deeply skeptical. Responding to a viewer question on his podcast about the company’s stockpiled capital, Eisman state
The video game retailer is quiet, but three potential buyouts make sense for the small-box chain.
GameStop (GME) stock analysis: fair value $23.14 target, cash-fueled M&A strategy, margins outlook, and key risks.
Best Buy stock was up on reports that GameStop may acquire the consumer electronics company.
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