From Nasdaq
June 14, 2025 9:00:00 am:

MicroStrategy and its co-founder Michael Saylor made headlines in 2020 by using the company’s capital to purchase Bitcoin, leading to a 2,970% surge in stock value. GameStop, inspired by MicroStrategy, also bought Bitcoin in hopes of reviving its declining stock price and business outlook. The move was seen as a bold strategy to hedge against economic risks.

After facing challenges due to declining foot traffic and digital competition, GameStop saw a resurgence in stock value thanks to viral online influencers and retail investors. Despite its volatile nature, GameStop’s market cap remains over $13 billion. The company’s recent profitable year was attributed to cost-cutting measures, although net sales fell by roughly 27.5%.

GameStop’s CEO Ryan Cohen announced a $1.3 billion capital raise to invest in Bitcoin, a move seen as a hedge against global currency devaluation. Analysts remain skeptical of GameStop’s Bitcoin strategy, questioning its long-term sustainability. The company’s core business struggles to find direction, and its volatile stock may not be suitable for retail investors seeking stability.

While GameStop’s purchase of Bitcoin may boost its stock value temporarily, analysts warn of the risks involved. Wedbush analyst Michael Pachter highlighted the company’s baffling valuation gap compared to MicroStrategy. The core business remains a concern, lacking a clear and sustainable strategy for long-term growth. Retail investors are advised to consider the risks before investing in GameStop. 1. The stock market saw a significant increase today, with the S&P 500 reaching a new all-time high of 4,500 points. This surge was driven by positive economic data and strong corporate earnings reports.

2. In international news, tensions continue to rise between Russia and Ukraine as Russian troops gather near the border. The US and other Western countries have expressed concern over the situation and are closely monitoring developments.

3. The latest COVID-19 statistics show a decrease in cases and hospitalizations in many parts of the world. Vaccination rates are on the rise, with over 50% of the global population now fully vaccinated against the virus.

4. A new study has found that the use of e-cigarettes among teenagers has reached an all-time high, with over 20% of high school students reporting regular use. Health experts are warning about the potential long-term health risks associated with vaping.

5. The United Nations has declared a humanitarian crisis in Afghanistan as the country faces severe food shortages and a lack of access to basic necessities. Aid organizations are calling for urgent assistance to help alleviate the suffering of the Afghan people.

Read more at Nasdaq: GameStop Has Taken a Page Out of MicroStrategy’s Playbook. Can It Save the Struggling Stock?