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The S&P’s 10 Best Stocks of 2013 Through Q3

A look at 2013's best runs, turnarounds and lucky breaks

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#6: GameStop

GameStop NYSE:GMEIndustry: Specialty Retail
Year-to-Date Returns: 101%

GameStop (GME) was down to its last quarter in mid-2012 as the threat of digital downloads threatened to destroy its brick-and-mortar video game business. There were rumblings that the big video game companies would start cracking down on used games — a big part of GameStop’s business — and pressures as games migrated to mobile devices was huge.

But then relief swept in this year as the next generation of gaming consoles — including the PlayStation 4 and the Xbox One — decided to pass on safeguards that would prohibit used titles.

That news, followed by better-than-expected earnings even amid the negativity and a capitulation from short sellers, has helped lift GME stock to new multiyear highs lately and has helped it challenge pre-recession highs.

Of course, investors shouldn’t forget that the pressures from downloadable content still remain and that GameStop’s brick-and-mortar model remains threatened going forward.

Article printed from InvestorPlace Media,

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