GameStop’s 2,460% Roller Coaster Rumbles to Reality Check
- Earnings due from a chain that rarely has any profit to report
- Skeptics warn $14 billion market cap disconnected from value
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In the wild, speculative ride known as GameStop Corp., traders are about to get a real-world dose of data when the video-game retailer reports earnings next week. Whether the results justify the company’s $14 billion market value is another issue entirely.
While shares of the Grapevine, Texas-based company have given back a huge chunk of this year’s 2,460% gain after hitting a record intraday high of $483 in late January, they’re still up better than 900%, closing Thursday at $201.75. Skeptics are warning amateur investors who piled into the stock that this remnant of their euphoria could still come crashing down.