The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while panic never helps investors, it's still a good idea to play devil's advocate with investments. Consider video game retailer GameStop
Here at the Motley Fool, we like to consider both the good and bad sides of an investment, so in this article, I've highlighted three of the main bearish arguments on GameStop today. Be sure to read the bullish side, as well, and then weigh in with your own comments below or rate GameStop in CAPS.
1. Online threat: Just as companies like Blockbuster
2. Increasing competition: Although GameStop is the top player in the used game market today, it's facing tougher competition from big-box contenders Wal-Mart
3. Falling industry sales: Until a few months ago, video games had held up well during the recession. But market research firm NPD Group recently reported that video game hardware, software, and accessory sales fell a record 29% year-over-year in June, followed by another 29% drop in July, marking the fifth straight month of declines. In addition, hardware sales slowed down due to anticipated price cuts on gaming consoles. Game publisher THQ
Of course, GameStop has thrived despite past obstacles. But the question of its future viability is why CAPS is such a great resource to augment your own analysis. To see details of what CAPS members are saying now about GameStop, just click on over to Motley Fool CAPS and have a look -- or add your own thoughts directly to this story in the comments box below.
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Fool contributor Dave Mock weighs the pros and cons of a fancy new sports car, but always ends up sticking with his clunker. He owns no shares of companies mentioned here. The Fool's disclosure policy is still waiting for its secret decoder ring to come in the mail.