Top investor Daniel Jones maintains a Sell rating on GameStop stock despite its recent 163% surge, noting the company's bleak long-term prospects. Jones points to GME's declining revenue from hardware and software sales and an evolving video game industry that will make retail spaces obsolete over time. While GME has taken steps to strengthen its balance sheet and diversify, Jones is skeptical of its ability to transition successfully. GME investors chasing short-term gains may not care about fundamentals, but Jones believes the long-term picture for the retail business is poor.
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00:00It's Benzinga, and here's what's on the block.
00:03Top investor Daniel Jones maintains a sell rating on GameStop stock despite its recent
00:08163% surge, noting the company's bleak long-term prospects.
00:13Jones points to GME's declining revenue from hardware and software sales and an evolving
00:18video game industry that will make retail spaces obsolete over time.
00:22While GME has taken steps to strengthen its balance sheet and diversify, Jones is skeptical
00:27of its ability to transition successfully.
00:30GME investors chasing short-term gains may not care about fundamentals, but Jones believes
00:35the long-term picture for the retail business is poor.