Shares of Gamestop GME are standing out in negative broader indexes after BB&T Capital released some bullish comments.
Analyst Anthony Chukumba believes GameStop's position in the used video game marketplace is “highly defensible” from the likes of Wal-Mart.
Gamers most likely will not “tolerate the problems encountered” at Wal-Mart. Instead they will continue to trade-in at GameStop where trade-ins are easy, said the analyst.
Despite Wal-Mart offering higher trade-in prices, Wal-Mart will have difficulty replicating advantages of trading-in at Gamestop such as extensive pricing, large merchandise selection, proprietary inventory management system and in-house refurbishment capabilities, Chukumba said.
In a “worst case scenario,” both companies can coexist, the analyst believes.
Shares of GameStop are up 2.3 percent to $44.40 in Thursday's trading. Shares of Wal-Mart are up 0.43 percent to $77.51.
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