GameStop's Losing Big to Digital
GameStop (NYSE: GME) stock has not been fun for shareholders to own, losing approximately 90% of its value over the past five years. What's behind this precipitous fall? While management talks about the lack of new gaming systems hitting the market, the bigger picture is more troubling.
GameStop increasingly faces competition from digital games, including those backed by large and deep-pocketed companies. This is only going to intensify. The company's same-store sales, a key retail metric, have suffered, with a negative figure in 2018. Allso, its annual profitability has declined since 2015, going from operating income of $608.7 million in 2015 to an operating loss of $702 million in 2018.
For the first nine months of 2019, its operating loss widened from the same time frame in the year-ago period..
Source Fool.com
