GameStop Has 94% Downside Risk as Digital Threat Hasn't Gone Away, Analyst Says

Rich Duprey, The Motley Fool
·2-min read
GameStop Has 94% Downside Risk as Digital Threat Hasn't Gone Away, Analyst Says

While GameStop's (NYSE: GME) lofty stock price is unsustainable once the Reddit trading surge keeping it elevated fades, the video game retailer still must confront the challenges of a transforming industry. Ascendiant analyst Edward Woo says the challenge is too much for GameStop at the moment, even with the tailwind of the video game console upgrade cycle. In a research note to investors, Woo said the "digital threats" to GameStop's business will continue to mount, which will cause the support it's received from internet traders to fade.