GameStop may consider becoming a Bitcoin bank like MicroStrategy, but faces challenges

From Nasdaq

March 27, 2025 07:34 AM:

GameStop faces challenges but may be worth considering. The board approved holding Bitcoin as a reserve asset to potentially become a Bitcoin bank like MicroStrategy. Q4 saw declining revenue, but improved profits due to reduced costs and interest income. However, continued business contraction is expected with uncertain guidance.

GameStop’s balance sheet reflects efforts to improve operations, but the cash build came at the cost of shareholder value. Shareholder equity rose 250% with a 46% increase in share count. Analysts are unimpressed, with a Sell rating and $10 price target. Stock trades over 115x F2024 earnings with no growth expected.

Following MicroStrategy’s strategy, GameStop’s business metrics are expected to stabilize, but revenue growth is unlikely. Technical outlook shows price support at key levels, but a meme-like run to record highs is improbable due to low short interest. Resistance at $35 to $40 may limit gains until more news emerges.

Read more at Nasdaq.: Maybe It’s Time to Buy Some GameStop Stock