SONY - GameStop Stock Downtrend Is Intact: The End Game Draws Near | Benzinga
Shares of GameStop (NYSE: GME) have been trending lower ever since the meme stock frenzy first spiked, and the downtrend is intact. The company continues to bleed business and cash, putting it in a downward spiral, and investors should flee. The stock is still tradable, but bullish traders beware; one day's gains will likely turn into losses tomorrow, next week, and next year.
As appealing as the business model is, it relies on a niche, after-market business that has yet to produce sustainable growth or profitability and probably never will. If you are wondering what the end-game for this stock is, the most likely scenario is to revert to the pre-meme price points below $5.
No Game In GameStop Q4 Results
GameStop had a weak quarter in Q4, missing the Marketbeat.com consensus estimates on the top and bottom lines. The company brought in $1.79 billion in net revenue for a decline of 19.7% YOY that missed the consensus by 1200 basis points as clients cut back on hardware, software, and collectibles.
Hardware posted the smallest decline, 12% YOY, led by a 25% decline in collectibles and a 30% contraction in software. Sales are impacted by inflation and interest rates, which ...