Gamestock?
Right now everyone is talking about how GameStop’s
stock is sky rocketing. They say it’s the little guy giving it to the big hedge
funds. My question is why GameStop of all the different companies out there. To
me it has seemed that GameStop was on its death spiral. Since at least last year I started noticing
that GameStops in the Denver Metro area had started to carry less and less
product in their stores. A large part of this is when they stopped carrying a lot
of used games for older systems. I used to love going there for PS2 games. I
personally have refused to buy a new game system for years because I believe
that the game companies take advantage of gamers by not making their systems
back version playable. Gaming can be a very expensive hobby if you keep up with
it.
This is what game stops used to look like:
Now they seem to be mostly empty.
One even recently went out of business on Arapahoe
road by the Walmart. Personally I think that everyone that is jumping into this
boat are going to be hurt. I wish they would have picked a better company to
back. A while ago GameStop bought out ThinkGeek. ThinkGeek used to be this
amazing website where you could get amazingly cool products (there were also a
few physical stores). I was disappointed when this happened because the
GameStop stores really didn’t start selling those amazing products in their
stores. I thought that they would use the merger to help with their product,
but no. Then the ThinkGeek website was shut down and the links just take you to
GameStop’s site which does not have the same kind of product diversity that you
used to be able to get at ThinkGeek.
How high will the stock continue to rise? No one
knows. Why did they pick GameStop? Equally unknown. To be truthful I will be surprised
if GameStop is still open in 5 years even with this boost. They need to change
their business model and address the product they have in their stores. For now
though at least some people have been able to make money off the stocks, but
many more stand to be hurt by these rapid changes in a company that does not
have a future.
The one thing I do like about all of this is the small traders sticking it to big business.
Further Info/Reading
The Rise In Stock:
https://www.nasdaq.com/articles/gamestop-stock-has-climbed-too-high-2020-10-14
https://www.cnet.com/personal-finance/robinhood-to-allow-limited-buys-on-gamestop-amc-on-friday/
https://thehill.com/homenews/house/536392-omar-proposes-tax-on-trades-in-response-to-gamestop
The Merger:
ThinkGeek
https://www.theverge.com/2019/6/14/18679421/thinkgeek-shut-down-website-gamestop-geek-merchandise
https://en.wikipedia.org/wiki/ThinkGeek
Anti-Semitism, yah it’s happening…..:
https://www.jta.org/2021/01/28/united-states/the-jewish-angles-to-the-gamestop-stock-saga-explained
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