GameStop, the leading brick-and-mortar video game retailer, is looking to become the leading mobile gaming retailer. The company is targeting the $20 billion mobile gaming market with a $1 billion share sale of its shares.
The company’s stock price is up more than 30% following the news and its shares are currently up to $41.75, a new all-time high.
We believe the mobile gaming market is poised for significant growth, which should drive share gains for GameStop in the years ahead. The company has a number of opportunities to grow through its current core business.
The company is looking to diversify its business with the mobile gaming market, as well as increase its focus on the e-commerce and digital gaming markets.