GameStop has been all the buzz lately, and not just for individuals who like video games. In fact, the history and direction of GameStop over the past decade has been very interesting — going from a failing video game outlet, to one of the most talked about stocks of all time! In facts, it’s actually one of the first stocks that started the whole ‘meme stocks’ craze, and it’s still being held by millions of individual investors today (just like we’ve seen with AMC).
However, there is definitely much more to the company than just a video game retailer and stock crazy. With so much attention on the company, today we are going to cover why people love to invest in this company, and how their actual business model of buying and selling video games came together.
Be sure to read on to learn more about the company and why it’s become such an influential company in an age where online and digital gaming is quickly becoming king! We’ve also included some funny memes and facts about GameStop, and with some traditional Babbages to GameStop history!
Hopefully, these facts will help you in your investment making decisions or at least bring you back to the days of trading in old video games for a few bucks and walking out with a nice game that you just couldn’t wait to play!
What is GameStop?
Did you know that GameStop has been in business for almost 40 years? The video game retailer originally began as Babbage’s, a Dallas store that acquired billionaire Ross Perot’s investment in the company. While the store initially specialized in software products, the company quickly moved on to video games. Early models included the Atari 2600 and Nintendo games, and the company became a publicly traded company in 1988.
While the company started struggling nearly a decade ago as gamers moved online to purchase games, it recently resurrected its business model. Since then, the company’s stock price has grown nearly 1,600 percent at times, but has recently gone through some drastic swings with the volatility in the market. The company has multiple stakeholder interests, including investors, customers, and employees.
Why Do People Love Investing in GameStop?
GameStop commanded the attention of everyone about a year ago, when its stock price hit astronomical heights and hedge funds lost billions of dollars. GameStop’s wild ride was a perfect example of “you only live once” investing, according to author Salvador Vergara. While GameStop’s share price has subsequently tumbled by 80%, the stock’s meteoric rise spawned many other wild speculations. The game retailer’s share price remains high, but there’s a risk associated with every investment.
Many investors in GameStop are millennials. They were the first generation to grow up with modern video games. Without millennials, the video game industry wouldn’t exist. Millennials have been crucial to the growth of GameStop, which went public in 2002. Its annual revenue peaked at $10 billion in 2002 and has been steadily declining since. But investors have been betting on GameStop’s continued growth.
Funny GameStop Memes
The recent stock price rise of GameStop has spawned some very funny GameStop Memes. This video game retailer has gone from a failing company to a US$23 billion business within a week. The company’s stock is now up nearly 40% in a day. So how did the company get here? Read on to find out. It was far from the only video game retailer to face negative stock sentiment.
The company’s trade-in service is notorious for paying very low prices for old video games. Moreover, the company’s reputation for bad business practices led many people to joke about the company’s trade-in policy. Kermit the frog has a point. The trade-in policy at GameStop is infamously unfair and often costs customers money.
A GameStop Meme aimed to make its customers laugh is one such example below, and if you’d enjoy even more of them — check here.
While many people associate GameStop with video games, it started as a software store in Dallas, Texas in 1983. The company received investor money from billionaire Ross Perot, and soon began focusing on video games as well. In the early years, Babbage’s sold Atari 2600 games. Nintendo games were added to the store lineup in 1987. In 2000, Babbage’s became a publicly traded company.
In 2012, the FBI released a press release revealing that a former vice president of the company defrauded the company of millions of dollars. Olivera defrauded the company by billing them as fictitious vendors and transferring the money from a fake business account to his own. Olivera spent almost $2 million in fraudulent activity before he was caught. Olivera was convicted of mail fraud and served four years in prison.
Interesting Facts on GameStop
If you’re a fan of video games, you’re probably interested in learning more about GameStop, a popular chain of game retailers. While the video game industry has undergone cyclical changes over the years, GameStop’s installed base continues to grow. As of the end of 2016, there were 86.9 million units in the company’s stores. While the company’s future may be uncertain, its employees can enjoy talking about their favorite video games all day long.
The company was once owned by Barnes & Noble, but broke away in 2004 and has since grown to more than 5800 locations worldwide. It’s still a major player in the video game industry, but it has been under pressure since the launch of Xbox Game Pass. While gamers don’t necessarily buy new games at GameStop, they can get cash for used titles, which may help them get a better deal. The company has also incorporated an in-store gaming sampling program for consumers to try new games.
If you enjoyed the content found in this article today, be sure to check out our other reference guide on how big brands are working with influencers on TikTok, Instagram and other social networking platforms.