Why gamestop is good

If anything, they may improve price discovery, as per this paper from an MIT professor. In any case, dark pool activity is unlikely to be a major factor in the value of GME stock. Why is Reddit so worked up about dark pools and other arcane trading theories? Netflix will offer games to its existing subscribers at no additional cost.

Reportedly, it will focus on mobile games first, but in time, it may encroach on the higher-end gaming market. In news specific to GameStop, Reuters reported that the company will invest more in its stores. This came after GameStop investor Ryan Cohen visited the stores undercover and found them not up to par. It seems that GameStop will work on fixing the basics, such as improving inventory levels and customer service.

Customers had long complained about these things back when GME stock was at a low price and the company seemed on the verge of bankruptcy. If the stock is to justify its sky-high share price, GameStop needs a digital-first future. Its much-hyped announcement about non-fungible tokens NFTs has led to little so far, for example. Give it to social media: The meme traders kept GME stock elevated far longer than most people would have thought possible. At some point, however, GME stock is likely to sink.

Of course, GameStop has defied gravity for many months. That said, the short squeeze played out months ago. The current theories on Reddit about dark pools, Citadel, ladder attacks and the like are highly speculative, to say the least. With little more than far-fetched rumors to keep GME stock going, the most likely direction for the share price is to the downside.

On the date of publication, Ian Bezek did not have either directly or indirectly any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace. However, online services like Xbox Live and Steam, which offer players entire libraries of games easily downloadable at home, are continuing to grow in popularity, which represents a massive hurdle for GameStop.

Then it expanded into the licensed merchandise business by studying the most popular products at Comic-Con and devoting a portion of its stores to these products. Additionally, GameStop acquired ThinkGeek in , which already had a slew of licenses, to further magnify its market share. The company also made acquisitions of Kongregate in to enter social gaming, Spring Mobile in to get into the wireless market, and Simply Mac in the same year to sell Apple Products.

Many experts believe that the stock is not a good investment yet as they expect its share price to crash back down to reality soon. In the future, it could be a good buy as GameStop is making a very strong effort to enhance its digital presence and is expected to be profitable by Who Is the Motley Fool? Fool Podcasts. New Ventures. Search Search:.

Sep 18, at AM. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors. The gaming retailer is re-investing capital to improve its tech, fulfillment, and talent. The company still has to prove it can execute a turnaround after three years of losses. Image source: Getty Images.

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Stock Advisor launched in February of Those are inflated valuations, not a stock priced to buy. So although GameStop is a business that can win, its stock is not, at least not yet, and serious investors should wait for the inevitable pull of gravity before buying in.

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