In January, GameStop, the Grapevine-based retail game store, was briefly the most talked about company in the stock market. Amateur traders bid up its shares in an attempt to sabotage hedge fund investors who were selling the stock short.
But there’s more to the GameStop story than a wild ride for its share price. Tech expert Omar Gallaga recently took a second look at the company for Texas Monthly. He told Texas Standard that while the stock hasn’t remained at the all-time high price it achieved in January, it continues to trade above $100 – far above its typical range. The company’s CFO Jim Bell recently resigned, and Gallaga says some believe Bell was forced out.
GameStop operates 5,500 stores, down 1,000 from its peak, and faces stiff competition from online game sellers.
Highlights from this segment:
– GameStop has added board members with online experience, but hasn’t revealed a plan to transition away from brick-and-mortar stores.
– The fluctuating stock price is still based on manipulation by investors, rather than the company’s fundamentals.
– The company has discussed adding in-store events and esports tie-ins to increase customer interest