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GameStop is ‘lost at sea’ and its rosy outlook is setting it up for failure, analyst says
Videogame retailer cut its guidance after posting losses for its latest quarter
GameStop Corp. is “lost at sea” with a leadership that remains unjustifiably optimistic in the face of declining new and used software sales, a shift toward lower margin hardware sales, continued discounting and a “Hail Mary” effort to sell the rest of the company.
That’s the view of Benchmark analyst Mike Hickey, who said the company’s weak financials are an impediment to attracting a bid, dampening the takeover hopes that have been one of few catalysts for the stock this year. The videogame retailer GME, -7.38% is in the midst of a strategic review as it struggles to sell physical games to customers who can simply download them at home, and has said it is open to a sale of the company.
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https://www.marketwatch.com/story/gamest...ewer_click
Videogame retailer cut its guidance after posting losses for its latest quarter
GameStop Corp. is “lost at sea” with a leadership that remains unjustifiably optimistic in the face of declining new and used software sales, a shift toward lower margin hardware sales, continued discounting and a “Hail Mary” effort to sell the rest of the company.
That’s the view of Benchmark analyst Mike Hickey, who said the company’s weak financials are an impediment to attracting a bid, dampening the takeover hopes that have been one of few catalysts for the stock this year. The videogame retailer GME, -7.38% is in the midst of a strategic review as it struggles to sell physical games to customers who can simply download them at home, and has said it is open to a sale of the company.
...
https://www.marketwatch.com/story/gamest...ewer_click
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