GameStop (NYSE: GME) is scheduled to release earnings on Thursday, Aug. 21, after market close. While my analysis shows it is likely to beat estimates, there’s a bigger story brewing behind the scenes. If my thesis proves correct, the company’s commentary could put some profits into our coffers — the interesting part is we won’t be trading GME at all.
When was the last time you went to a one-hour photo location to get a roll of film developed or rented a movie from a video store?
For companies like Kodak and Blockbuster, the writing was on the wall long before their stock prices fell off a cliff — many just chose to ignore the signs.
Video game retailer GameStop may eventually suffer a similar fate, but for now, there are still plenty of gaming systems that require cartridges or DVDs, which should keep customers coming into stores and the shares afloat.
In fact, I believe GameStop will beat analyst estimates next week and prove just how resilient and profitable the gaming space is, even for an “old-school” company like GameStop.
But the real play here is…READ MORE HERE