© Reuters. FILE PHOTO: People walk by a GameStop in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly/File Photo
By Zaheer Kachwala
(Reuters) – GameStop (NYSE:) shares fell 7% before the bell on Thursday on signs that it will take longer for the brick-and-mortar videogame retailer to stem a revenue decline due to tough competition and weak demand.
Once a meme-stock darling, the company’s third-quarter revenue fell and missed market expectations, underscoring the turnaround challenge faced by top investor Ryan Cohen, who became CEO and chairman in September.
“Fundamentally the business needs a radical rethink,” said Russ Mould, investment director at AJ Bell.
“GameStop faces intense competition from the likes of Amazon (NASDAQ:) and Ebay (NASDAQ:), and it needs to make its large store estate more appealing, which could cost a significant amount of money.”
Shares of the company have lost nearly a fifth of their value this year after shedding 50% in 2022 compared with the multifold growth seen during the pandemic.
The company has in recent months slowed its aggressive shift to e-commerce and instead relied more on brick-and-mortar stores where customers can…
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