Yahoo Finance Here's How Much a $1000 Investment in GameStop Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in GameStop (GME) ten years ago? It may not have been easy to hold on to GME for all that time, but if you did, how much would your investment be worth today?
GameStop's Business In-Depth
With that in mind, let's take a look at GameStop's main business drivers.
Headquartered in Grapevine, TX, GameStop Corp. is the world's largest video game retailer. The company offers the best selection of new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats. Through all its channels, the company sells various types of digital products, including downloadable content, network points cards, prepaid digital, prepaid subscription cards and digitally downloadable software as well as collectible products. The company also publishes Game Informer, the world’s largest print and digital video game publication featuring reviews of new title releases, game tips and news regarding current developments in the video game industry. It also operates PowerUp Rewards program. The company operates business in four geographic segments: United States, Canada, Australia and Europe.
The company’s products are categorized as follows:
Hardware and Accessories (57.3% of first quarter fiscal 2024 sales): GameStop offers new and pre-owned video game platforms from the major console and PC manufacturers. The current generation of consoles include the Sony PlayStation 4 (2013), Microsoft Xbox One (2013) and the Nintendo Switch (2017). Accessories consist primarily of controllers, gaming headsets, virtual reality products and memory cards.
Software (27.2% of Sales): The company provides new and pre-owned video game software for current and certain prior generation consoles. It also sells a wide variety of in-game digital currency and digital downloadable content.
Collectibles (15.5% of Sales): The category consists of licensed merchandise, primarily related to the video game, television and movie industries and pop-culture themes, which are sold through the company’s video game store and e-commerce properties, and ThinkGeek and Zing Pop Culture stores.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in GameStop ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2014 would be worth $3,148.96, or a gain of 214.90%, as of June 14, 2024, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 180.65% and gold's return of 73.20% over the same time frame.
Going forward, analysts are expecting more upside for GME.
GameStop's stock has outperformed the industry in the past six months. GameStop has been progressing well with its growth endeavors while maintaining a sturdy balance sheet. It has been taking initiatives to diversify its business and become a more technology-driven firm. GameStop has also been pursuing opportunities in cryptocurrency, nonfungible tokens and Web 3.0 gaming verticals. However, the downturn in sales within the collectibles category highlights ongoing struggles and the decline in hardware, accessories, and software sales suggests a shift in consumer preferences toward digital formats, signaling a continued drop in demand for physical gaming products. Also, the stock seems overpriced relative to industry norms, as evident from its price-to-sales ratio, suggesting a possible overvaluation in light of its business fundamentals.
Shares have gained 5.24% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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GameStop Corp. (GME) : Free Stock Analysis Report
