Shortism to kill Gamestop

The short term attention to Gamestop won’t save it, as it has no immediate impact on demand creation. The continued attention might even do more harm than good as it is driving negative sentiment for the challenges of the struggling gaming retailer.

A Marketing effectiveness report made through My Telescope, analysing search and sentiment data shows that Gamestop’s share price saga hasn’t created any significant demand increase. Game stop overall demand trend has been negative except in november when consumers were looking to buy the new Playstation 5 gaming console. 

Upward trends in November, and clear downward trend in consideration in last weeks

The negative trend shows  that the share stock action was not made to actually help
Gamestop but to create hick up for professional investors. 

“It’s sad that the core buyers of Gamestop can spend their time teaching investment funds a lesson, but don’t really help the company. Instead they have been drawing a lot of attention to the operational problems of Gamestop, putting a lot more stress on the new management who is trying to turn things around.” says Fred Pirenne CSO My Telescope

The core of the problem remains to the Gamestop business model and inability to generate demand particularly to its much bigger rivals. The share of search particularly for gaming shows that Gamestop, can’t solidify its specialist positioning versus the larger, more generic retailers and that the attitude towards the company is increasingly negative.