![]() Investors should do the same and leave while shares trade at a premium. Management has recognized this fact and is milking GameStop for its remaining cash. That leaves GameStop looking like a Blockbuster or Redbox - a corporation with limited time left. The figure is particularly lopsided for consoles like the Nintendo Switch, where digital copies dominate. According to an analysis by Ars Technica, 89.1% of all games are now available only through digital download. GameStop sells physical video games in an era where copies are mainly sold online. This is effectively a business-planning problem. “Management overworks, underpays, and under-appreciates its frontline workers, sets unrealistic expectations and constantly threatens termination for any employee that cannot exceed them,” the workers noted. On May 19, staff at an entire GameStop store in Michigan quit on the same day to protest awful working conditions. Instead, GameStop’s top brass are now cutting back on everything from capital expenditure to rank-and-file salaries. Management has failed to make much headway in Web 3.0 gaming and NFTs. According to its most recent filings, 84% of its revenues still come from hardware, accessories and videogame software - products readily available online. Texas-based GameStop (NYSE: GME) is a prime example of a geriatric company that’s failing to adapt. Unless they can find someone else to mind the shop, these retail darlings will find themselves in the same category as sole proprietorships at the end of their life - aging out and ready to retire. On the other hand, these firms all have dying businesses and will unlikely last beyond 2030. On the one hand, retail investors love these firms they’re consistently the top-mentioned companies on social media and the stocks command considerable premiums. That makes these five meme stocks particularly interesting. No amount of retail investor love can reliably turn a dying business into a thriving one. These social media darlings tend to collapse once their underlying business runs out of steam. ![]() In other words, these firms simply age out. According to the Tax Foundation, 85% of all American businesses are sole proprietorships, which cease to exist once the business owner decides to stop working. However, most companies die by fizzling out. HP bought Compaq for $25 billion in 2002 and discontinued the trademark 11 years later. banking sector when leverage caught up with them. Firms like Lehman Brothers and Long Term Capital Management left craters in the U.S. ![]()
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