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Here's How Much You'd Have If You Invested $1000 in GameStop a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in GameStop (GME - Free Report) 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. The company's unique buy-sell-trade program allows customers to trade in video game consoles, games, and accessories, as well as other electronics for cash or in-store credit. 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.
As of Jan 29, 2022, the company offered games and entertainment products in 4,573 stores worldwide. The company’s products are categorized as follows:
Hardware and Accessories (52.8% of FY21 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 (33.5% 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 (13.7% 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.
On Jul 6, 2022, GameStop’s board of directors approved and declared a four-for-one split of the company’s Class A common stock in the form of a stock dividend.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For GameStop, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $3,712.22, or a 271.22% gain, as of January 18, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 169.49% and the price of gold increased 8.72% over the same time frame in comparison.
Analysts are anticipating more upside for GME.
Shares of GameStop have underperformed the industry in the past three months. We note that the company reported a wider-than-expected third-quarter fiscal 2022 loss, though the same was narrower than the loss recorded in the year-ago quarter. The top line also declined year over year and missed the Zacks Consensus Estimate due to softness in hardware and accessories, as well as software categories. However, GameStop’s focus on optimizing costs helped post a 8.3% decline in SG&A expenses on a year-over-year basis. The company has been taking initiatives to diversify the business and become a technology-driven firm. It has been pursuing growth opportunities in cryptocurrency, non-fungible tokens and Web 3.0 gaming verticals. Management foresees a long-term opportunity in the collectibles category, wherein sales improved 7.9% in the quarter.
The stock has jumped 7.60% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in GameStop a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in GameStop (GME - Free Report) 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. The company's unique buy-sell-trade program allows customers to trade in video game consoles, games, and accessories, as well as other electronics for cash or in-store credit. 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.
As of Jan 29, 2022, the company offered games and entertainment products in 4,573 stores worldwide. The company’s products are categorized as follows:
Hardware and Accessories (52.8% of FY21 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 (33.5% 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 (13.7% 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.
On Jul 6, 2022, GameStop’s board of directors approved and declared a four-for-one split of the company’s Class A common stock in the form of a stock dividend.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For GameStop, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $3,712.22, or a 271.22% gain, as of January 18, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 169.49% and the price of gold increased 8.72% over the same time frame in comparison.
Analysts are anticipating more upside for GME.
Shares of GameStop have underperformed the industry in the past three months. We note that the company reported a wider-than-expected third-quarter fiscal 2022 loss, though the same was narrower than the loss recorded in the year-ago quarter. The top line also declined year over year and missed the Zacks Consensus Estimate due to softness in hardware and accessories, as well as software categories. However, GameStop’s focus on optimizing costs helped post a 8.3% decline in SG&A expenses on a year-over-year basis. The company has been taking initiatives to diversify the business and become a technology-driven firm. It has been pursuing growth opportunities in cryptocurrency, non-fungible tokens and Web 3.0 gaming verticals. Management foresees a long-term opportunity in the collectibles category, wherein sales improved 7.9% in the quarter.
The stock has jumped 7.60% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.