Video game retailer GameStop (NYSE: GME) is struggling with a significant stock decline, having dropped 74% from its peak of nearly $87 per share in January 2021, as of June 13. The company’s recent financial report shows increased profit margins despite a decade-long slump in top-line sales, indicating a shift towards higher-margin collectibles, which comprised 28.9% of total net sales as of May 3, 2025, up from 15.5% the previous year.
GameStop has limited communication with investors, publishing minimal earnings reports and ceasing earnings calls in 2023. The company has also been restructuring financially and acquired 4,710 bitcoins, raising questions about its strategy. Although profits are on the rise, GameStop’s overall sales and connections to the gaming community continue to diminish.
With the uncertain future of its business model and strategy, GameStop remains a speculative investment, and analysts currently recommend looking at other stocks for potential returns.
