What is GameStop, Company, Really Worth? Is it important?

Mr. Cohen argues that GameStop can thrive by cutting property costs and making the company’s online offerings more appealing. It will have “competitive pricing, extensive game selection, prompt delivery and a truly high touch experience that excites and delight customers,” he wrote.

Representative of Mr. Cohen, who was appointed to the retailer’s board this year along with two other executives, declined to comment.

Even analysts who thought GameStop’s stock had become a bubble said that the company had some things going on. Mr. Pachter, an analyst at Wedbush, says that George Sherman, who was appointed as CEO of GameStop in 2019, bolstered the company’s finances, giving his team time to find a way around. .

The switch to downloading games from the internet isn’t as big of a threat to GameStop as it looks, Pachter said. The company has a solid business in allowing customers to trade in old games to attract people to the company’s store. For that reason, it wasn’t Tower Records, he argued, referring to the music store empire that its parent company declared bankrupt in 2004.

Gamers who love to delve into GameStop’s exchange rates, claiming that the company sometimes pays them less than $ 2. However, the company also dominates a nostalgic niche, reminding people of the time when browsing for deals or searching for the latest hit game has to go to the mall. So what if the stores had the best aesthetic that could be described as the opposite of Apple’s sleek, minimalist stores?

Aaron Littman, a dog walker in Manhattan, is a frequent customer because the GameStop stores have a good selection of used games he buys when his 6-year-old son visits. “I stock up on things he really likes,” Mr. Littman said Friday outside a GameStop location on 14th Street in Manhattan.

In the future, GameStop can capitalize on the excitement in its shares by issuing new shares. That would bring in substantial new money that could be used to reduce debt and give it the resources to invest in its own business.