Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game retailer GameStop (GME -0.60%) has received an alarming one-star ranking.
With that in mind, let's take a closer look at GameStop and see what CAPS investors are saying about the stock right now.
GameStop facts
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Headquarters (founded) |
Grapevine, Texas (1994) |
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Market Cap |
$4.6 billion |
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Industry |
Computer and electronics retail |
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Trailing-12-Month Revenue |
$8.9 billion |
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Management |
CEO J. Paul Raines (since 2010) CFO Robert Lloyd (since 2010) |
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Return on Equity (average, past 3 years) |
5.3% |
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Cash/Debt |
$635.8 million / $0 |
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Dividend Yield |
2.8% |
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Competitors |
Amazon.com Best Buy Wal-Mart Stores |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 11% of the 3,174 members who have rated GameStop believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, Yakoloi, succinctly summed up the GameStop bear case for our community:
No matter how well run, or how solid this company is there is one thing that will KILL [GameStop]. Direct digital game sales. ... Remember what happened to Blockbuster video? When is the last time you saw Wherehouse CD store? The same thing that happened to music and movies is happening to the Video Games. Gamestop has its foot in the door of the direct digital download service but it is far too little far too late with Microsoft, Sony and other major publishers far ahead in the game. Their entire business model is backed into a shrinking corner, abandon ship!
