Why GameStop Can Keep Rising

GameStop's latest earnings results didn't reverse the negative trend that investors have had to endure for two years running. Sales shrank this quarter, as did profits. Yet investors are still looking at a nearly 100% return on the stock in just the last year.

Despite the overall poor results, there were two areas of the business where the company delivered for investors this quarter. In the following video, Fool contributor Demitrios Kalogeropoulos discusses how GameStop managed solid growth in its unusual "other" sales category, while returning a big chunk of cash to shareholders. Demitrios argues that the company could st

ill make for a good investment as we head into the next generation of gaming consoles.

While Activision Blizzard and Microsoft have been taking the headlines when it comes to console gaming, investors following the gaming sector would do well to also keep tabs on Electronic Arts. We can help. The Motley Fool's special report breaks down the risks and opportunities facing the company to help you decide if EA is right for your portfolio. Click here to get your copy now.

The article Why GameStop Can Keep Rising originally appeared on Fool.com.

Fool contributor Demitrios Kalogeropoulos owns shares of Activision Blizzard. The Motley Fool recommends Activision Blizzard and owns shares of Activision Blizzard, GameStop, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

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