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I Still Don't Believe in a GameStop Turnaround

TheMotleyFool

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I Still Don't Believe in a GameStop Turnaround

Shares of GameStop (NYSE: GME) have pulled back dramatically from the all-time high of $483 they reached in late January in the midst of an epic short squeeze. Nevertheless, the stock is up more than 700% year to date. This reflects some investors' optimism about GameStop's ability to remake itself as a gaming e-commerce powerhouse (and perhaps lingering hopes for another short squeeze).

GameStop stock gained another 6% on Monday, after the company announced that CEO George Sherman will step down later this year. Clearly, investors are excited about the prospect of a new visionary leader changing the retailer's fortunes. However, the business case for GameStop -- both in the short term and the long term -- continues to be dubious at best.