Tuesday, June 23, 2009

Change is Good for Some

There is an excellent article at Ars Technica about the structural challenge to Gamestop (GME), and console/handheld video game software.

GME was an absolute darling in the $60s and is currently a pariah at $22 and looks like it's headed lower, even though there has been more optimism around consumer discretionary names.

It feels as though we're sticking a fork in the idea of getting in a car and driving to a store to buy this form of digital media. The timing of this type of paradigm shift is pretty impossible to game and prepare for, especially for a growth company. This cheap stock is likely to stay cheap.

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