GameStop Corp.

GameStop Corp., the world’s largest video game retailer, is a staple in American homes, known for its video games, consumer electronics, and gaming merchandise. Established as Babbage's in 1984 in Dallas, Texas by James McCurry and Gary Kustin, it was renamed GameStop in 1999. As of 2021, GameStop employs 12,000 people across over 4,800 stores globally.

The company went public in 2002 under the NYSE ticker GME, priced at USD 18 per share. However, by the mid-2010s, GameStop's performance faltered due to poor investments in smartphone retail and a market shift to online game sales and downloads, exacerbated by a decline in in-person sales during the COVID-19 pandemic.

In January 2021, GameStop's stock became the center of a dramatic short squeeze, peaking at over USD 500 per share due to intense buying to cover short positions, causing significant financial repercussions for hedge funds and substantial losses for individual traders. The stock price has remained volatile since, with significant swings including a sharp drop and recovery in March 2021 following earnings announcements and a secondary stock offering.

By the end of 2021, GameStop's market capitalisation stood at USD 15.92 billion, with 36% of its stock held by the public; 45% by institutions like RC Ventures, Blackrock, and Vanguard; and 19% by insiders, including company officers and directors.

Echoing the 2021 frenzy, on 14 May 2024, GameStop and AMC shares skyrocketed due to “Roaring Kitty” Keith Gill reigniting meme stock mania. Stock values doubled in a single trading session and short sellers faced significant losses—the market cap for GameStop jumped to USD 18 billion. Both retail and institutional investors were stirred into action for this resurgence, despite the tougher economic climate.