GameStop‘s (NYSE:GME) historic short squeeze, which caused the video game retailer’s stock to skyrocket over 1,900% between Jan. 1 and Jan. 27, captivated — and burned — many investors. The bubble eventually popped, but the stock remains up more than 200% for the year.
Those gains don’t have much fundamental support. GameStop’s sales of physical games are still sliding as gamers rely more on digital downloads, while big box retailers also sell the latest hardware. The coronavirus pandemic also exacerbated that pain over the past year.
GameStop’s revenue fell 31% year over year in the first nine months of 2020, and it remained unprofitable. It expects its comparable store sales to rise in the fourth…
