Why GameStop Is Poised to Plunge
With that in mind, let's take a closer look at GameStop and see what CAPS investors are saying about the stock right now.
Grapevine, Texas (1994)
Computer and electronics retail
CEO J. Paul Raines (since 2010)
CFO Robert Lloyd (since 2010)
Return on Equity (average, past 3 years)
$635.8 million / $0
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 11% of the 3,174 members who have rated GameStop believe the stock will underperform the S&P 500 going forward.
No matter how well run, or how solid this company is there is one thing that will KILL [GameStop]. Direct digital game sales. ... Remember what happened to Blockbuster video? When is the last time you saw Wherehouse CD store? The same thing that happened to music and movies is happening to the Video Games. Gamestop has its foot in the door of the direct digital download service but it is far too little far too late with Microsoft, Sony and other major publishers far ahead in the game. Their entire business model is backed into a shrinking corner, abandon ship!
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The article Why GameStop Is Poised to Plunge originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com. It also owns shares of GameStop and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.