GameStop (NYSE:GME) is trading at its 52-week highs, but GameStop stock may be in for a cruel surprise when it reports quarterly results on Thursday.
Analysts see revenue and earnings declining, and the near-term outlook doesn't appear too rosy. Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) will hit the market in a few months with new gaming consoles that feast on connectivity to deliver games and other forms of entertainment. Why is a physical retailer of a fading medium trading so high?
In this video, longtime Fool contributor Rick Munarriz explains why GameStop stock may be a bad investment this week as it heads into what could be a problematic report.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool owns shares of GameStop and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.