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Wedbush Securities analyst Michael Pachter discusses stock speculation on ‘Barron roundtable’
The actions of GameStop Corp. were under pressure on Thursday following a report that streaming giant Netflix is ​​considering entering the video game industry.
A Netflix video game streaming service would compete with GameStop, which sells video games and related items through its more than 4,000 stores and through its e-commerce properties in 10 countries.
Shares of Texas-based GameStop fell 5.7% before cutting their losses.
| Teleprinter | security | Last | Switch | Switch % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 166.82 | -0.80 | -0.48% |
| NFLX | NETFLIX, INC. | 542.95 | -5.00 | -0.91% |
Netflix on Wednesday hired Mike Verdu, a former Electronic Arts and Facebook executive, as vice president of game development.
The company plans to start broadcasting video games within the next year, Bloomberg News reported, citing someone familiar with the situation.
GameStop has for much of the past year embarked on transforming its business into a major ecommerce player that sells a wide variety of merchandise with fast shipping.
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The effort, which is led by Ryan Cohen, co-founder of online pet products supplier Chewy, has resulted in a number of changes, including a senior management reshuffle.
The change in strategy triggered a short compression of GameStop actions.
GameStop shares rose 790% this year through Wednesday, but closed at a two-month low. The S&P 500 was 16% higher.
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