has taken a major hit — from around $16 in January to around $4 by August.
Yet, by early 2019, the world's largest video game retailer was facing a crashing stock price — from around $16 in January to around $4 by August. The reason for the stock's price crash is multi-faceted, but the long and short is this: Like Blockbuster Video and Tower Records before it, GameStop faces major challenges to its business model from the internet. As more people buy video games through digital storefronts, fewer buy games on physical discs from GameStop. And that trend isn't likely to reverse.
Beyond speaking with bearish analysts, GameStop's new exec team has another idea in mind for fixing the stock price:"Deliver on our promises — when we say we're gonna do something, go do it," Sherman said."We are very clear by saying that our story is not a sales story for the next four quarters or so."
"This is a community — a set of constituents that maybe hasn't had the flow of transparency and dialog that it needed to have," CFO James Bell said in an interview with Business Insider last week. In so many words, it's about creating a solid base before the next PlayStation and Xbox consoles arrive in holiday 2020,"so that when you reach the cyclicality point of a console return — the next-generation launch — you have a highly leverageable model that underpins that revenue growth that happens during that cycle."