In this article:
We recently compiled a list of the These 10 Firms Were Last Week's Worst Performers. In this article, we are going to take a look at where GameStop Corp. (NYSE:GME) stands against the other stocks.
Wall Street’s main indices finished firmer on Friday, with all main indices settling in the green territory ahead of President-elect Donald Trump’s return to the White House.
Week-on-week, the Dow eked out a 3.81-percent gain, the S&P rallied 3.79 percent, while the Nasdaq increased by 3.84 percent.
Ten companies from diverse sectors, however, ended Friday weaker, posting notable declines versus the week prior. In this article, let’s look at which firms suffered a bloodbath and the reasons that dragged their performance.
For this week’s list, we only focused on companies with a market capitalization of at least $2 billion and a minimum trading volume of $5 million.
A gamer playing a game on one of the specialty retail company's gaming platforms.
GameStop Corp. (NYSE:GME)
Shares of GameStop Corp. (NYSE:GME) fell by 14.8 percent on Friday to close at $27.51 versus the $32.31 week-on-week amid reports that it was closing stores in the US, often with little to no warning. According to reports, the closure announcements were reported by employees on their social media platforms.
Since 2020 alone, GameStop (NYSE:GME) has been shutting down more than 700 stores as the COVID-19 pandemic heavily weighed on its profits. This was further aggravated by the continued rise in the digital age particularly online sales, and video game makers resorting to digital-only access to games.
This year alone, GameStop (NYSE:GME) reportedly will close dozens of stores across Texas, and it is uncertain whether other states will see similar store closures.
GameStop (NYSE:GME) is a retailer that sells video games, consumer electronics, and collectibles, with stores across the US, Canada, Australia, New Zealand, and Europe.
Overall GME ranks 5th on our list of last week's worst performers. While we acknowledge the potential of GME as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GME but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.