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Topic	Gamestop on the verge of being the next Blockbuster?
this_is_wow_huh 06/02/17 10:30:45 PM #1:	https://seekingalpha.com/article/4078014-gamestop-bankrupt-without-model-change interesting article, a few excerpts Today's GameStop shares many similarities with the now bankrupt Blockbuster. GameStop's reliance on anti-consumer marketing and price-gauging tactics will ultimately backfire. The churn-and-burn business model will bring the company down faster than the macro environment keeps it up. What was previously a smooth-flowing stock in GameStop (NYSE:GME) is now a mess of gaps and interday jumps: Patterns like this imply investor indecision - a tug-of-war between the bulls and bears. And in many such cases, when one side finally prevails, the stock begins an equally victorious rally (or selloff). Technicals can help us determine which way the stock will move in the short term. It is tempting to start with the technicals to make sense of what the stock is telling us. However, I think the short-term movements of GameStop are not only going to be insignificant but also should be excluded from our analysis so we can focus on the more important issue, which is a long-term issue. Several long-term issues, actually, but I think in this article, I will be able to convince you that these issues are easily summarized as "not optimistic." All you need to predict GameStop's future is a time machine. Actually, scratch that: You merely need to have a memory that spans roughly five years. Do you remember Blockbuster? GameStop Is Blockbuster Well Blockbuster is GameStop. Or GameStop is Blockbuster. You get the picture. At least I hope you get the picture. Better business models, such as direct-via-mail and on-demand ousted the Blockbuster business model. Perhaps there was a chance for the company to adapt, but it never seized the opportunity, and the rest is history. I want to make a direct comparison and say that just as Blockbuster was ousted by Netflix (NASDAQ:NFLX), GameStop is soon to be ousted by Steam - or Valve, more appropriately, the company that owns Steam. The company is private but certainly worth tens of billions of dollars, considering their annual revenue is already in the billions. But the comparison, which I will continue, does have one major flaw, which I will mention after the comparison. --- this is still huh wow! <cite>this_is_wow_huh posted [p:880307027] in Gamestop o... [t:75415715]...</cite> <quote>https://seekingalpha.com/article/4078014-gamestop-bankrupt-without-model-change interesting article, a few excerpts Today's GameStop shares many similarities with the now bankrupt Blockbuster. GameStop's reliance on anti-consumer marketing and price-gauging tactics will ultimately backfire. The churn-and-burn business model will bring the company down faster than the macro environment keeps it up. What was previously a smooth-flowing stock in GameStop (NYSE:GME) is now a mess of gaps and interday jumps: Patterns like this imply investor indecision - a tug-of-war between the bulls and bears. And in many such cases, when one side finally prevails, the stock begins an equally victorious rally (or selloff). Technicals can help us determine which way the stock will move in the short term. It is tempting to start with the technicals to make sense of what the stock is telling us. However, I think the short-term movements of GameStop are not only going to be insignificant but also should be excluded from our analysis so we can focus on the more important issue, which is a long-term issue. Several long-term issues, actually, but I think in this article, I will be able to convince you that these issues are easily summarized as "not optimistic." All you need to predict GameStop's future is a time machine. Actually, scratch that: You merely need to have a memory that spans roughly five years. Do you remember Blockbuster? GameStop Is Blockbuster Well Blockbuster is GameStop. Or GameStop is Blockbuster. You get the picture. At least I hope you get the picture. Better business models, such as direct-via-mail and on-demand ousted the Blockbuster business model. Perhaps there was a chance for the company to adapt, but it never seized the opportunity, and the rest is history. I want to make a direct comparison and say that just as Blockbuster was ousted by Netflix (NASDAQ:NFLX), GameStop is soon to be ousted by Steam - or Valve, more appropriately, the company that owns Steam. The company is private but certainly worth tens of billions of dollars, considering their annual revenue is already in the billions. But the comparison, which I will continue, does have one major flaw, which I will mention after the comparison. --- this is still huh wow!</quote> ... Copied to Clipboard!
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