From Nasdaq: 2025-06-15 11:31:00

GameStop (NYSE: GME) saw its stock price surge to nearly $87 per share, up from $3.36 three months earlier, driven by social media hype and a new leadership team. However, the stock has since trended lower, with investors taking a 74% haircut from the peak in January 2021. The company’s profits are on the rise, with positive free cash flows and adjusted earnings over the last four quarters, but its top-line sales have been declining for a decade. GameStop is transitioning to focus more on collectibles and preowned hardware, with sales of collectibles accounting for a growing percentage of total net sales.

Despite the potential for richer profit margins, GameStop’s limited communication with shareholders and unclear financial tactics, such as holding Bitcoin on the balance sheet, make it a speculative investment. The company’s future direction remains uncertain, with a shift towards becoming a store for collectibles and used gaming hardware. While the stock could rise over time, the lack of transparency from management and evolving business strategy make it a risky investment. The Motley Fool’s Stock Advisor team did not include GameStop in their list of the 10 best stocks to buy now, citing other opportunities with potentially higher returns.



Read more at Nasdaq: Can GameStop Stock Rise From the Ashes?