Gamestop Slips Below Book Value

[Mister Cheese]

https://www.bloomberg.com/amp/news/a...tailer-worsens

Investors are wondering whether it’s game over for GameStop Corp.

For the first time since the electronic and game-store operator began reporting goodwill data in 2001, the company is worth less than book value. GameStop has fallen the way of other brick-and-mortar retailers, with declining foot-traffic and an uptick in online gaming weighing on profits.

The retailer’s market capitalization has fallen below its goodwill -- a self-reported measure which calculates the fair market value using intangible assets, like its reputation --indicating that investors think the company is worth less than the measure suggests.

The Grapevine, Texas-based company’s market capitalization has shrunk in recent years as its stock tumbled nearly 75 percent from its peak at the end of 2007. Its market value is currently about $1.6 billion, while its goodwill value sits at roughly $1.7 billion. It has now joined the ranks of only two other companies in the S&P 500 Index, CenturyLink Inc. and Envision Healthcare Corp., that currently trade below goodwill.

GameStop said in its December 2017 sales statement that it expects to record non-cash impairment charges of $350 million to $400 million to goodwill in the fourth quarter. The company is expected to report quarterly results on March 22.

Is it finally over for gamestop? Will they be closing all their stores by the end of 2019?

[RuneDK]

If they close stores I’ll feel bad for the employees but good riddance, can’t wait for them to go under.

[endersblade]

To be honest, I'm surprised they lasted this long. Outside of the ones in malls, I've had frequent conversations with the guys at the one I go to and he said there are several hour stretches every day where they get nobody at all, and that some days he can count the number of customers that actually buy stuff on both hands. And this store is located in a very busy shopping center.

The one in the mall near me is a different story, that place is always crowded as hell. Though how many are actually there to buy, I have no idea.

[Yunru]

Well since their are selling a scam to people, its no wonder. They kinda dont sell games any more. And they sell used games as new.

GameStop PowerUp Rewards Credit is 1000% scam.

[Destinas]

There's only one in my small town, which is in a busy shopping center near the only Walmart in town. Because of that, there are always tons of people in there. I mostly go there for the fun stuff, rather than games these days.

Other places, I've always heard (and seen) Gamestops being empty. It's not really a surprise to me, but I would be sad to see it go away, honestly.

[Deleted]

these things usually end up with filing for bankruptcy, then a slimmed down re-launch and/or re-brand to cling on for a few more years.

I do think physical stores for console games still have like a decade orso left though before its all digital, tho maybe not as dedicated stores.

[Osmeric]

When the NY Times says their print publication may have just a decade left, you have to know physical information retailing is dying.

[Zephyr Storm]

Sucks for anyone working at GameStop, but I can’t wait to see that PoS company go out of business. I haven’t bought anything from there in years (probably since 2010) and I don’t miss it at all.

[Tech614]

Nah, they just need to downsize. It got to the point where they where trying to be like Subway and had way too many fucking overlaping stores, and they can't maintain that anymore.

They likely aren't going out of business anytime soon. Even if they did, anyone who lives in any decent populated area already likely has local competition for them. Mom & Pop game stores that sell new and retro have been popping up like wild fires.

[xenogear3]

This thing was worth $10 billion in 2007 !
Talking about bubble.

Its store sells used games as new.
Enough said.

[Video Games]

I still don't get the hate. They've never messed up an order unlike amazon. Like yeah, they don't make the best business desicions, but whatever

[Veldoranz]

Well, since digital has gotten so big, they're essentially an overpriced toy store/hot topic which obviously isn't working out for them. I can't say I am suprised.

[Tech614]

Well, since digital has gotten so big, they're essentially an overpriced toy store/hot topic which obviously isn't working out for them. I can't say I am suprised.

They're the biggest seller of Nintendo games in the US(and probably more, we just know the Nintendo blurb for a fact). That includes the digital eshop. Digital has almost nothing to do with it, just they grew too fast and can't sustain it. This happens all the time to specialized stores, even in areas where the digital market doesn't exist at all.

[Eleccybubb]

I still don't get the hate. They've never messed up an order unlike amazon. Like yeah, they don't make the best business desicions, but whatever

Kind of answered your own question within your own statement.

[onesBronson]

I'm gonna miss gamestop if it goes down, but these days I mostly get my stuff digitally.

[Tech614]

Kind of answered your own question within your own statement.

Their business decisions are fine for the most part? Hell if not for them Xenoblade 1 never even comes to the US.

The only time I see people hating on gamestop it's because they can only get $1 for their shitty 2 year old sports game they can't resell and lucky to get $1 for tbh or the fact they treat their employees like trash. Only the 2nd one is legitimate tbh.

Overall gamestop is pretty damn friendly for the consumers, their trade in bonuses usually provide some of the best deals in the industry.

[PACOX]

Well, since digital has gotten so big, they're essentially an overpriced toy store/hot topic which obviously isn't working out for them. I can't say I am suprised.

That wouldn't have been a problem if they didn't let greed get the best of them. They had niche mostly to themselves and ruined it.

[Volitar]

Good, fuck Gamestop haven't bought a game from them in years.

[Video Games]

Kind of answered your own question within your own statement.

Well no because despite them being dumb, they don't mess up orders and they can be pretty nice.

[Sparklelord]

"We see here your company has an estimated value of $1.6 billion. We'll give you a dollar, dollar twenty five store credit, for it."