GameStop shares tumble as analysts sound death knell for long-term value growth
Expert issues warning as the market for new gaming systems matures after new launches from Microsoft and Sony
Analysts are predicting that GameStop s share performance has run out of steam.
Mon, 12 Apr, 2021 - 20:00
Bailey Lipschultz
GameStop’s Reddit-fuelled trading surge is likely going to fade as threats from digital game downloads sink in, according to one sceptical Wall Street analyst.
The stock slumped after Ascendiant Capital Markets analyst Edward Woo downgraded the retailer to ‘sell’ status from ‘hold’, saying increasing digital sales for video-game publishers is a looming risk given GameStop’s minimal market share.