Morningstar Rating

Stock Research and Analysis

by Liang Feng

Bulls Say

GameStop has differentiated itself as the one-stop shop for used video games, with a commanding 80% share of the used video game market.
GameStop has leveraged its ecosystem of trade-in credits to also become one of the largest sellers of new games. As a result, the company holds significant leverage over its vendors, and is not overly tied to any one publisher's success.
GameStop has very successfully leveraged its large customer base and loyalty program to develop nontraditional categories, such as digital and mobile. Read more 

Bears Say

Faster Internet speeds and bandwidth cap limits will make it easy for customers to download games directly from home.
Digital downloads could force higher used game prices, since customers will be less willing to trade in games if they hold nontransferable digital content.
The growth of alternative digital platforms such as PC, mobile, online, and cloud may take away share from the console platforms. Read more 

Management

We assign GameStop a standard stewardship rating. We credit management for learning from the mistakes of other brick-and-mortar stores and think it has done a decent job at adjusting to the rapidly changing industry landscape. Over the past few years,  Read more 

Profile

With more than 6,000 stores across North America, Europe, and Australia, GameStop is the world's largest retailer of video game products such as video game hardware, software,  Read more 

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The Logistics Are There for This Undervalued Stock 
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