From Nasdaq: 2025-06-13 15:00:00

GameStop’s shares experienced volatility in 2021, followed by a decline due to lower revenues and investor dissatisfaction with new capital raise policy. Recent fundraising efforts led to a 20% drop in share price, as GameStop aimed to raise $1.75 billion for general corporate needs and invested in Bitcoin to increase value and liquidity.

Despite GameStop’s investment in Bitcoin, investors were concerned about the risks associated with the volatile asset. The company’s move to purchase 4,710 Bitcoins worth over $500 million mirrored Strategy Incorporated’s strategy, but its impact on revenue growth remained uncertain. GameStop’s revenues had already declined due to customer interest shifting towards digital games.

GameStop’s recent profit of $45 million in the first quarter of 2025 showed improvement, with a lower debt-to-equity ratio than the industry average, indicating financial stability. However, the company lacks revenue growth and faces business challenges, making it a risky investment despite trading at a discount. GameStop’s current Zacks Rank is #3 (Hold).

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