Provided by Dow Jones
A Wall Street Journal Roundup In the past few weeks, investors have bid up the share prices of companies such as GameStop Corp. and AMC Entertainment Holdings Inc., as short sellers have bet against them. Here is an analysis of the challenges and prospects for these businesses. GameStop GameStop is trying to survive a yearslong erosion of its business, which has relied for nearly four decades on people visiting its bricks-and-mortar stores to buy the latest videogames and consoles, as well as to trade in and purchase used games and gear. The company has been stung by mounting competition from retail giants such as Amazon.com Inc. and Walmart Inc., and the advancement of technology that enables people to download games directly from consoles and computers instead of buying hard copies. It has also gone through a period of high executive turnover, with Chief Executive George Sherman a longtime retail executive who
Provided by Dow Jones
By A Wall Street Journal Roundup In the past few weeks, investors have bid up the share prices of companies such as GameStop Corp. and AMC Entertainment Holdings Inc., as short sellers have bet against them. Here is an analysis of the challenges and prospects for these businesses. GameStop GameStop is trying to survive a yearslong erosion of its business, which has relied for nearly four decades on people visiting its bricks-and-mortar stores to buy the latest videogames and consoles, as well as to trade-in and purchase used games and gear. The company has been stung by mounting competition from retail giants such as Amazon.com Inc. and Walmart Inc., and the advancement of technology that enables people to download games directly from consoles and computers instead of buying hard copies. It has also gone through a period of high executive turnover with Chief Executive George Sherman, a longtime retail executive wh