For analysts like me to change their investment thesis on a stock dramatically from a “sell” to a “buy” recommendation, or vice versa, fundamentals must change or a key catalyst should be present. What is the key catalyst now for GME? For me, there is none.
Will it be its digital evolution so that the video game retailer will conquer the industry in the U.S.? Because its business model, so far, does not work. The company is bringing in losses.
And as you know, from a valuation perspective, the book value per share for GME stock has collapsed in the most recent years. This is fact, not emotion or opinion.
Please note that these are my personal views and they could be wrong simple as that.