GameStop CEO Ryan Cohen clarified in an interview that the company is not aiming to be a Bitcoin repository like Strategy. However, GameStop lacks a clear plan for its business, which is struggling. The company relies on its cash balance, used mainly to buy Bitcoin, to stay afloat.

While there is potential in the trading cards market, GameStop’s ability to capitalize on it remains uncertain. Trading cards are gaining popularity, with the market projected to reach billions by 2025. Despite growth in collectibles, GameStop’s retail business outlook is not optimistic due to other revenue declines.

GameStop saw growth in its collectibles business in FQ1 but faces challenges in hardware and software sales. The trading card business is not strong enough to offset these declines, with an inventory reduction indicating clearance as the primary driver. The company’s collectibles segment remains a small portion of its overall revenue.

Short interest in GameStop has increased, impacting stock price movement. The company’s stock price is near long-term lows, suggesting a further decline. GameStop’s recent debt offering, totaling over $2 billion, raises concerns about its financial strategy. An analyst predicts a 40% drop in the stock price to $13.50.

Institutional support for GameStop is dwindling, with less than 30% ownership by institutions. The total share count has increased significantly, making significant institutional support unlikely without a catalyst. Two analysts foresee growth for GameStop in the future, despite current challenges and divestitures. Investors should remain cautious.

Read more at Nasdaq: GameStop: Clarity Brings Renewed Confusion for Meme Stock