Don't Touch GameStop Stock Until This Happens
Video game retailer GameStop (NYSE: GME) is in a pickle. The arrival of new gaming consoles from Sony and Microsoft is supposed to save GameStop's bacon, but there are many reasons to believe that the PS5 and Xbox Series X won't be enough. The company's business plan is deeply flawed, and the stock is poised to destroy shareholder value for years to come.
That could change if GameStop decides to adopt a brand-new strategy. I might rethink my thumbs-down rating on this stock if the company accepts the changes proposed by a group of activist investors, for example. Until then, I would not touch this stock with a 10-foot Energy Sword.
Hey GameStop, are you listening? Image source: Getty Images.
Source Fool.com
