GameStop Slows The Bleeding, But Recovery Remains Unlikely


  • GameStop’s stock has lost 23% of its value since last May, but it remains popular among speculative traders and short-sellers.
  • The company has improved its balance sheet positively, potentially allowing it to transition to more effective business models.
  • GME’s outdated business model and declining sales challenge its long-term profitability and valuation.
  • As long as its working capital is stable, bankruptcy is very unlikely, but without a clear business model transition, a rebound appears even less likely.


JIM WATSON/AFP via Getty Images

Last May, I published “GameStop: 2-Year Life Expectancy, Without A Huge Business Turnaround,” which detailed my bearish view of the company GameStop (NYSE:GME). Since then, GME has lost an additional 23% of its value. It

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