Connect with us

Hi, what are you looking for?


As Bed Bath & Beyond folds, how safe is GameStop (GME) stock?

Bed Bath & Beyond (NASDAQ: BBBY) finally decided to file for bankruptcy protection on Sunday after the company’s funds ended. This move was expected considering that the BBBY stock price was down by over 91% in the past three months. 

It became a penny stock that ended Friday at $0.2935, down from its all-time high of $85. So, some investors have questions about whether other meme stocks like ContextLogic (NYSE: WISH) and GameStop (NYSE: GME) will be next.

GameStop is not going bankrupt soon

Bed Bath & Beyond filed for bankruptcy protection because the company run out of cash. It has struggled to raise enough cash in the past few months. In a recent statement, the firm said that it needed about $375 million to get to the holidays. 

The most recent results showed that it had $153 million in cash and short-term investments against long-term debt of over $1 billion. Its short-term debt was about $907 million. Therefore, with its sales dwindling and losses rising, the company had no chance of survival without capital infusion.

Therefore, there are concerns about popular meme stocks like retailers GameStop and However, while the long-term viability of GameStop is uncertain, the reality is that the company is not going bankrupt soon. 

Unlike Bed Bath & Beyond, GameStop has one of the best balance sheets in the industry. The firm has over $1.39 billion in cash and short-term investments and little debt. It has no short-term borrowings and just $28.7 million in long-term debt. The company said the following in its most recent earnings call:

“At the end of the year, we had no borrowings under our ABL facility and no debt other than a low-interest unsecured term loan associated with the French government’s response to COVID-19.”

GameStop turned a profit

The other difference between GameStop and Bed, Bath & Beyond is that the company turned a profit in the fourth quarter. Its profit came in at $48 million, a major improvement after the company lost $147 million in the same quarter in 2022.

GameStop is also working to cut its costs by closing unprofitable locations and even exiting some markets like those in Europe. The company pledged to aggressively cut costs this year, which could lead to some short-term losses.

Still, while GME is not going bankrupt soon, it does not make it a good investment. For one, analysts expect that the company’s annual revenue and profits will continue struggling. Expectations are that its revenue will drop to $5.91 billion this year and $5.63 billion in 2024. 

Also, the reality is that GameStop operates in an industry that is in a long-term decline as more people opt to game streaming and online console purchases.

The post As Bed Bath & Beyond folds, how safe is GameStop (GME) stock? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Rep. Jennifer Wexton (D-Va.) announced on Tuesday that she has been diagnosed with Parkinson’s Disease. “If there’s one thing that Democrats and Republicans can...

    Latest News

    After Dianne Feinstein announced she’d contracted the shingles in early March, her staff said she planned to return to the Senate within a matter...


    A U.S. District Court judge has ruled that Elizabeth Holmes, founder and CEO of the disgraced blood-testing company Theranos, cannot remain free on bail...

    Latest News

    SEOUL, South Korea — When a group of American lawmakers arrived in South Korea for meetings with government and military officials, President Yoon Suk-yeol...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.