There’s no need for GameStop to directly compete with other companies that stream games. It’s a smart move for GameStop to return to its core business model. Consequently, GameStop shifted its focus back onto the company’s brick-and-mortar locations. Yet, this strategy didn’t yield the intended results (i.e., it didn’t bring a revenue windfall to the company). Hence, unlike Bed Bath & Beyond, GameStop is making significant strides as a financially viable business.Īs you may recall, GameStop’s management wanted to emphasize digital/e-commerce sales and non-fungible tokens (NFTs) for a while. This represents a milestone moment, as it’s GameStop’s first net-income-positive quarter in two years.įurthermore, GameStop reduced its selling, general and administrative expenses, maintained a healthy inventory, and ended Q4 2022 with cash, cash equivalents and marketable securities totaling $1.391 billion. Impressively, the company swung from a string of net earnings losses to a net profit in 2022’s fourth quarter. Meanwhile, GameStop proved that it can be a successful, profitable business. Bed Bath & Beyond did end up filing for Chapter 11 bankruptcy protection, and the company has been delisted from the Nasdaq exchange. Their concerns turned out to be fully justified. Plus, the company has had a terrible quarterly earnings track record, and the company’s vendors feared that Bed Bath & Beyond might file for bankruptcy protection. For instance, with a heavy debt load and a “ontinuation of negative operating losses,” Bed Bath & Beyond resorted to a massive share sale of up to $300 million. Recently, there have been multiple signs that Bed Bath & Beyond is in serious trouble. InvestorPlace - Stock Market News, Stock Advice & Trading Tips GameStop Is Fundamentally Different From Bed Bath & Beyond Even as BBBYQ stock rapidly loses value, GameStop stock could be a worthy investment for the long term. So, don’t obsess over meme-stock comparisons. However, GameStop has comeback prospects while Bed Bath & Beyond is on a relentless path toward destruction. Also, both companies had their share of problems after the Covid-19 pandemic struck. Some folks might lump GameStop into the same category as Bed Bath & Beyond because meme-stock traders have targeted these two companies in the past. There are important differences between GameStop and Bed Bath & Beyond, and GME stock actually has the potential to make a multi-bagger move in 2023. Meanwhile, Wedbush analyst Michael Pachter believes that “GameStop is well-positioned to be a primary beneficiary of the new console launches, and we remain quite optimistic that it will return to profitability by FY:21.There’s no need to worry that video game retailer GameStop (NYSE: GME) will end up like Bed Bath & Beyond (NASDAQ: BBBY). ( See GME stock analysis on TipRanks).įollowing the recent rally, the average price target of $10.72 suggests shares are poised to pull back 84% over the coming year. Out of the 6 analysts covering GME, 3 rate it as Hold, and 2 say Sell, and 1 analyst says Buy. GameStop shares have spiked a whopping 1,513% over the past six months, while analysts have a Hold consensus on the stock. We are investors who put safety and family first, and when we believe this has been compromised, it is our duty to walk away from a stock,” Left added.
“This is not just name-calling and hacking but includes serious crimes such as harassment of minor children. “We will no longer be commenting on GameStop, not because we don’t believe in our investment thesis, but rather the angry mob who owns this stock has spent the past 48 hours committing multiple crimes that I will be turning over to the FBI, SEC and other governmental agencies.” “What Citron has experienced in the past 48 hours is nothing short of shameful and a sad commentary on the state of the investment community,” Citron’s Andrew Left wrote in a letter posted on Twitter.
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