Is There Trouble At Gamestop (GME)
Is it finally time to start unloading shares of Gamestop (GME)? Gamestop dropped 5% today to close just above $20. Gamestop's shares dropped on news that Best Buy (BBY)is going to start selling used video games.
Used video game sales represent a significant portion of Gamestop's revenue. Amazon (AMZN) and Walmart (WMT) are already competing against Gamestop in the used game sector. 16% of Best Buy's sales currently come from the entertainment market. Best Buy's attempt to boost sales in this sector could potentially affect the bottom line at Gamestop.
Gamestop investors do not need to rush out and dump shares but should keep an eye on competitors Best Buy, Amazon, and Walmart.
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Tags: video games