The inexorable shift from packaged video games to downloads is bad news for retail kingpin GameStop, but you wouldn’t know it from looking at the company’s stock price right now.
Shares of the video game retailer climbed as high as $247 in after-hours trading on Tuesday, up from around $18 per share just a couple of weeks ago. The spike is almost entirely due to a game of brinksmanship between Wall Street firms and individual investors, egged on through forum posters on Reddit.
But when the dust settles on this whirlwind of stock market drama, it’ll almost certainly have no bearing on GameStop’s actual business. Experts say that no matter where GameStop’s stock price ends up, it’ll ultimately remain a struggling seller of packaged video games whose turnaround plan looks like a longshot. That’s what makes this whole episode so bizarre to begin with. (GameStop did not respond to a request for comment.)
“Nothing that GameStop has done warrants this,” says Michael…