GameStop's New Strategy Isn't So New
Shares of video game retailer GameStop (NYSE: GME) have rocketed higher this year. The company is now worth around $17 billion, not too far off from the $28 billion valuation of consumer electronics retailer Best Buy (NYSE: BBY).
For comparison: GameStop generated just over $5 billion of sales last year and posted a large net loss; Best Buy produced $47 billion of revenue along with record profits. If GameStop's stock price doesn't make sense to you, join the club.
GameStop's comeback strategy, laid out in its latest annual report, involves investing in technology, leveraging its digital assets, modernizing its fulfillment operations, and diversifying its product offerings to include PC gaming, computers, monitors, game tables, mobile gaming products, and gaming TVs. GameStop will be closing some of its stores as it refocuses on e-commerce.
Source Fool.com
