GameStop (GME) stock got slammed since the past couple of years, due to a secular decline in physical games and with the late stages of the console cycle. The next console cycle should give GameStop a lifeline, and the company is expected to generate between $200 and $250 million unlevered FCF in 2019 and 2020 on an adjusted basis. Although the company is fundamentally weakening, the threat from digital/cloud gaming is low, and it would take years to develop.
Key Catalysts
1. New console cycle and impact of digital downloads
Online/digital gaming segment of the