24/7 Insights
- Many investors lose most or all of their investments when stocks run up on speculation and rumor.
- GameStop’s stock has had another crazy run, but the end may be in sight.
When it comes down to it, most companies are measured on financial performance. Even if their stock trades wildly higher or lower, there must be a benchmark. This is true of GameStop Corp. (NYSE: GME). Its revenue has decreased 37% in five years to $5.3 billion, and the company lost money in all but one of those years, which was in 2019. Some people think GameStop shares are junk.
Five years ago, GameStop’s stock traded for just over $1. During crazy speculation in 2021, it hit $81 for a few minutes. Through much of that year, it traded above $40. Recently, it had another run, from $10 to over $20. It fell to earth when management estimated first-quarter revenue of about $875 million, down from the same quarter last year when it was $1.24 billion. To make matters worse for investors, according to The Wall Street Journal, “In a separate filing connected to the shelf registration, GameStop said it has entered into an open market sales agreement with Jefferies, which is acting as a sale agent as it looks to sell up to 45 million new shares of common stock at prevailing market rates.”
GameStop faces two challenges it cannot meet. The first is that people increasingly download games over the internet, and the second is that giant retailers like Walmart compete with it. As its recent quarterly numbers show, Walmart Inc. (NYSE: WMT) remains a massive success—and, incidentally, so is Amazon.com Inc. (NASDAQ: AMZN). GameStop is too small.
Many investors lose most or all of their investments when stocks run up on speculation and rumors. They are drawn to trading because they hear about the people who did well, and it is an excellent way to get burned.
∴
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.