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Why GameStop won't go bankrupt like Bed Bath & Beyond

As May's meme stock trade loses steam, could GameStop (GME) follow a similar fate to meme kinsman Bed Bath & Beyond? After being acquired by Overstock.com in 2023, the company was rebranded as Beyond (BYON).

Wedbush Equity Research Managing Director Michael Pachter comments on what sets the video game store chain apart from a traditional retailer.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Luke Carberry Mogan.

Video transcript

I quickly want to talk to you about one other name that you cover, which is beyond, you've got an out perform on it.

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This includes bed bath and beyond.

For anyone who may not know they obviously had their own issues and recovered to a degree.

Is there any evidence that gamestop could follow a similar path as bed bath?

Beyond?

Uh Well, they could follow a similar path as the former as the bankrupt debt bath and beyond.

Uh follow a similar path as Marcus Lemonis led beyond.

No, I don't think so.

Uh I, I had to look the word stand up to.

It's, it's a stalker fan that's me and Marcus.

I, I am absolute stan.

I love that guy.

Um Now you it takes a visionary retail leader like Marcus to turn a company like beyond around.

Um, he's buying that brands.

He bought the bed bath and Beyond brand are actually foreign management.

He bought this little brand and he's revitalizing the Overstock brand.

Um I love that.

I think they're gonna be kind of all by themselves and close up merchandise.

They're going to be a premium brand for home furnishings and a premium brand for toddler, uh, merchandise.

I think that, that Gamestop, if they try to reinvents themselves, more power to them.

But what's left?

I mean, we've already seen Ryan Cohen do two.

Is he going to try to sell dog food through the gamestop brand?

I doubt it.

You know, I, I mean, for real and the Gamestop brands problem is that the substitute is not, you know, a, a different online retailer or a different physical retailer.

The substitute is a digital download.

Gamestop sells something you don't need to purchase physically.

Beyond does not beyond sells stuff that you're either gonna buy at a different online retailer or you're gonna go to a physical store to get, you can't digitally download a couch, just can't happen it.

So you can digitally download Call of Duty and Microsoft's making, making it easier by letting you stream it so very easy to, to not make that purchase at gamestop.

No, they cannot follow in this in the path of Beyond unless somehow Ryan Cohen takes his, you know, billion dollar cash balance and pays it to Marcus Limona since he's Marcus turn business for him.