How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in GameStop (GME) ten years ago? It may not have been easy to hold on to GME for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at GameStop's main business drivers.
Headquartered in Grapevine, TX, GameStop Corp. is the world's largest video game retailer. The company offers the best selection of new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats. Through all its channels, the company sells various types of digital products, including downloadable content, network points cards, prepaid digital, prepaid subscription cards and digitally downloadable software as well as collectible products. The company also publishes Game Informer, the world’s largest print and digital video game publication featuring reviews of new title releases, game tips and news regarding current developments in the video game industry. It also operates PowerUp Rewards program. The company operates business in four geographic segments: United States, Canada, Australia and Europe.
As of Feb. 2025, GameStop operated 3,203 retail stores worldwide under various brands, including GameStop, EB Games, EB Games Australia, Micromania-Zing, ThinkGeek and Zing Pop Culture. The breakdown is as follows — 2,325 in the United States, 193 in Canada, 374 in Australia and 311 in Europe.
The company’s products are categorized as follows:
Hardware and Accessories (54.9% of Fiscal 2024 Sales): GameStop offers new and pre-owned video game platforms from the major console and PC manufacturers. The current generation of consoles include the Sony PlayStation 4 (2013), Microsoft Xbox One (2013) and the Nintendo Switch (2017). Accessories consist primarily of controllers, gaming headsets, virtual reality products and memory cards.
Software (26.3% of Sales): The company provides new and pre-owned video game software for current and certain prior generation consoles. It also sells a wide variety of in-game digital currency and digital downloadable content.
Collectibles (18.8% of Sales): The category consists of licensed merchandise, primarily related to the video game, television and movie industries and pop-culture themes, which are sold through the company’s video game store and e-commerce properties, and ThinkGeek and Zing Pop Culture stores.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in GameStop a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in April 2015 would be worth $2,558.19, or a 155.82% gain, as of April 8, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 143.81% and gold's return of 135.73% over the same time frame.
Analysts are anticipating more upside for GME.
GameStop has outpaced the industry in the past year. The company has been progressing well in its growth endeavors while maintaining a solid balance sheet. It has been taking initiatives to diversify its business and become a more technology-driven firm. GameStop has also been pursuing opportunities in cryptocurrency, non-fungible tokens and Web 3.0 gaming verticals. This reduction in operational costs reflects management's commitment to improving efficiency and streamlining business operations. Moreover, GameStop improved its debt position by reducing its net long-term debt to $6.6 million at the end of the fourth quarter from $17.7 million in the last year period. However, the decline in the Hardware and Software Categories’ sales signaled challenges. Currency fluctuations might pose a risk due to its international operations.
The stock is up 8.34% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2025. The consensus estimate has moved up as well.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GameStop Corp. (GME) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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