GameStop: Even Screaming Kittens Can't Save It Now (Strong Sell)

Sungarden Investment Publishing
Investing Group Leader
(6min)

Summary

  • GameStop's core business is struggling due to the shift to digital gaming, despite efforts to diversify and a strong cash position.
  • The company faces intense competition in physical game sales, with unclear turnaround strategies and declining revenue projections.
  • Valuation is disconnected from fundamentals, with high EV-to-EBITDA and significant shareholder dilution from recent cash raises.
  • GameStop lacks strong moats and clarity in strategy, making it a poor investment with a strong sell rating.
  • Looking for a helping hand in the market? Members of Sungarden YARP Portfolio get exclusive ideas and guidance to navigate any climate. Learn More »

GameStop shopping mall location. GameStop is a Video Game and electronics retailer.

jetcityimage/iStock Editorial via Getty Images

GameStop (NYSE:GME) is (fundamentally) a dying company. And it will take an even more unlikely scenario as the one Keith Gill a.k.a. Roaring Kitty was at the center of years ago to change that.

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This article was written by

Sungarden Investment Publishing
7.54K Followers
I'm Rob Isbitts, founder of Sungarden Investment Publishing. I run the new investing group Sungarden YARP Portfolio, a community dedicated to navigating the modern investment climate with humility, discipline, and a non-traditional approach to income investing. I've been charting investments since the 1980s, and I spent decades an an investment advisor and fund manager before semi-retiring in 2020. Now, this investing group is my focus. The markets tells us a story…we just have to listen! I teach subscribers how to do that.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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