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GameStop

GameStop

GameStop is an American consumer electronics and video game company.

Overview

GameStop is an American consumer electronics and video game company. The company has been a major video game retailer since the early 2000s, with steady decline to the company in the 2010s as video game sales shifted away from physical locations to online stores.

GameStop's stock price skyrocketed in 2021 due to a short squeeze, orchestrated and managed by the Reddit subreddit r/wallstreetbets.

History

GameStop began as Babbage's, a Dallas-based software retailer founded in 1984 by James McCurry and Gary Kusin. The original company merged with Software Etc., in 1994, granting both companies shares of a newly formed NeoStar Retail Group. Leonard Riggio, founder of Software Etc. and shareholder of Barnes & Noble, purchased the company's assets, dissolved the NeoStar holding company, and renamed the company under Babbage's Etc.

Barnes & Noble Booksellers purchased the company in October 1999 for $215 million USD. Acquisitions of Funco and Game Informer came in 2000, merging the companies into Funco, which was renamed to GameStop, Inc. in December 2000. GameStop went public in February 2002 on the New York Stock Exchange under the ticker symbol GME.

GameStop achieved retail success and public use in the early 2000s, operating across the entire United States and worldwide through acquired brands EB Games, Rhino Video Games, Micromania, and ThinkGeek.

The brand has seen a steady decline since the early-to-mid 2010s, cited as a result of the transition of video game sales from physical locations to online storefronts. The company reported over a 16% drop in sales for the 2016 holiday season, with its overall stock also dropping 16% in 2016. GameStop stock hit a 14-year low at $11.16 on January 29, 2019 as the company said it was no longer for sale.

Short Squeeze

GameStop stock skyrocketed in January 2021, after members of an online Reddit forum r/wallstreetbets noticed the company was one of the most shorted stocks on the New York Stock Exchange. As a result, millions purchased shares, leading to a 1,500% increase in the share price to an all-time high of $483 USD.

Timeline

April 19, 2021
GameStop announces CEO George Sherman wwill step down by end of July, 2021.
February 24, 2021
GameStop Shares Surge 100%
February 23, 2021
GameStop announces the sudden departure of its CFO, Jim Bell.

February 4, 2021
Stock decreases 20% to $48.79 a share, a sign that the party is winding down for retail investors who drove GameStop to record highs last month.
January 2021
Due to Reddit forum r/wallstreetbets, GameStop stock jumps more than 1,900% from early January prices, to a closing price of over $340 per share.
2021
Short-sellers lose about $19 billion on GameStop this year, according to figures from data provider Ortex.
2020
In 2020, activist investor Ryan Cohen bought a stake in GameStop, and took a seat on the company's board.
June 2018
GameStop announces that it is in "exploratory discussions" with potential buyers.
May 23, 2005
GameStop was founded by Daniel A. DeMatteo, Leonard Riggio and Richard Fontaine.
December 2000
Funco is renamed to GameStop, Inc., ahead of initial public offering of the company.
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Acquisitions

People

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Further reading

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Documentaries, videos and podcasts

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How A Battle Between Wall Street And Reddit Users Made GameStop Stock Skyrocket | Forbes

January 28, 2021

Companies

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News

Title
Author
Date
Publisher
Description
August 29, 2021
Gaming Intel - Esports & Video Games News
If you're looking for a Limited Edition Halo Infinite Xbox Series X, we've got Best Buy, Amazon, GameStop restocks from August 30-September 5
Matt Swider
August 14, 2021
TechRadar India
The PS5 restock situation has improved dramatically in the US, according to our restock exper. Stores like Walmart and Best Buy had lots of stock this week.
Matt Swider
July 27, 2021
TechRadar
GameStop is ready to launch new orders for the Sony PS5 console. Here's when you can get the PS5 restock from GameStop.
July 4, 2021
Gaming Intel - Esports & Video Games News
Here's everything we know about upcoming PS5 restocks at Target, Best Buy, Antonline, GameStop, & more in the week running July 5-11.
July 4, 2021
Gaming Intel - Esports & Video Games News
Here's everything we know about upcoming Xbox Series X/S restocks at Best Buy, Target, GameStop, Antonline, & more from July 5-11.
July 4, 2021
Texas News Today
Trust and trust (Image credit: Matt Swider / Instagram) PS5 Replenishment Tracker Matt Swider His tireless 24/7 tracking, in-stock Twitter alerts, and exclusive restocking reports have helped 55,000 people buy next-generation consoles in 2021. According to our exclusive source, the PS5 restock in the US today is on sale at Target, Best Buy, and GameStop ...
The Associated Press
June 22, 2021
CTVNews
GameStop raised more than US$1 billion in its latest stock sale, capitalizing on a newly arrived and fervent army of online investors.
By MICHELLE CHAPMAN
June 22, 2021
AP NEWS
GameStop raised more than $1 billion in its latest stock sale, capitalizing on a newly arrived and fervent army of online investors. The video game retailer has taken center stage among a handful of companies that have come to be known this year as meme stocks.
MICHELLE CHAPMAN AP Business Writer
June 22, 2021
ABC News
GameStop raised more than $1 billion in its latest stock sale, capitalizing on a newly arrived and fervent army of online investors
Dave Johnson
June 18, 2021
CNET
Two restocks happened yesterday. Who's next?
June 10, 2021
mint
In a quarterly report that was stronger than analysts forecast, GameStop said it may sell up to 5 million new shares, which would be worth $1.4 billion based on its latest share price.
Clare Duffy, CNN Business
June 9, 2021
CNN
GameStop is getting a new chief executive and chief financial officer, the company announced as part of its earnings release Wednesday.
June 9, 2021
mint
GameStop's volatile shares have nearly doubled in the past month, and they are now just 11% below their closing high in January
Emilia Terzon
June 8, 2021
www.abc.net.au
The Australian share market is set to rise on open, as tech companies and so-called "meme stocks" rally on Wall Street.
Carla Mozée
June 4, 2021
markets.businessinsider.com
GameStop had an underperform rating from Bank of America before the investment bank ended coverage of the Wall Street Bets favorite.
Carla Mozée
June 4, 2021
Business Insider
GameStop had an underperform rating from Bank of America before the investment bank ended coverage of the Wall Street Bets favorite.
Louis Ramirez
May 29, 2021
Tom's Guide
The latest PS5 restock updates Twitter, Walmart, Best Buy, and other retailers.
Carla Mozée
May 29, 2021
markets.businessinsider.com
AMC rising above its January high triggered excitement for retail investors, said an Oanda analyst about this week's surge in the stock.
Will Daniel
May 28, 2021
markets.businessinsider.com
GameStop stock has witnessed a resurgence of late, but short interest remains elevated at around 20%, according to data from S3 Partners.
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References

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