As meme stock trading loses steam in May, could GameStop (GME) suffer the same fate as its meme cousin Bed Bath & Beyond? In 2023 he was acquired by Overstock.com, after which the company was rebranded to Beyond (BYON).
Michael Pachter, managing director at Wedbush Equity Research, commented on how video game store chains differ from traditional retailers.
For more expert insights and the latest market trends, click here to watch the full episode of Catalyst.
This post was written by luke carberry morgan.
video transcript
I want to jump right in and talk about another name you've covered, but more than that, you're giving a great performance.
This includes bed baths and beyond.
For those who don't know, I obviously have my own issues and have recovered to some degree.
Is there any evidence that GameStop could follow a similar path to Bed Bath?
Beyond?
Well, they could end up going down a similar path to the former, a bankrupt bath of debt and beyond.
Oh, and follow the same path that Marcus Lemonis led.
No, I don't think so.
Oh, I had to see the word stand up.
It's me and Marcus stalking fans.
I'm an absolute stun.
I love that person.
Well, you need a visionary retail leader like Marcus to turn a company around like this going forward.
Well, he buys the brand.
The Bed Bath and Beyond brands he purchased are actually foreign-owned.
He bought this little brand and is reviving the Overstock brand.
Hmm, I love that.
I think they are going to go out on their own and close the product.
They're going to be a premium brand of home furnishings and a premium brand of products for toddlers.
I think if GameStop were to try to reinvent themselves, they would be given more leverage.
But what remains?
I mean, we've already seen Ryan Cohen show off two pieces.
Is he going to try to sell dog food through the GameStop brand?
I doubt it.
The problem with the GameStop brand is that the replacement is not another online retailer or another brick-and-mortar store.
The alternative is digital download.
Gamestop sells things that you don't have to physically buy.
Beyond does not sell products that you could buy at another online retailer or go to a brick-and-mortar store. Sofa cannot be downloaded digitally. That can't happen.
This makes it very easy to download and stream Call of Duty and Microsoft titles digitally, without having to buy them at gamestop.
No, they can't follow this the path of Beyond unless Ryan Cohen somehow takes out his billion dollar cash balance and pays Marcus Limona. Because he has Marcus doing business for him.
