Becker Private Equity & Business Podcast: GameStop Falls 23% on June 13, 2025
Host: Scott Becker
Episode Title: GameStop Falls 23% 6-13-25
Release Date: June 13, 2025
Overview
In this episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into the recent significant decline of GameStop's stock, which plummeted by 23% on June 12, 2025. Becker explores the underlying factors contributing to this sharp drop, the company's strategic pivots, and the broader implications for investors and the gaming retail industry.
Stock Volatility and Recent Decline
Becker opens the discussion by highlighting GameStop's 23% fall:
“GameStop fell 23% yesterday. Just about 23% yesterday.” [00:15]
He emphasizes the stock's notorious volatility, noting its frequent fluctuations:
“It’s up and it’s down. But probably the more interesting thing is, which really happens, GameStop.” [00:25]
Transition from Gaming Retail to Diversified Investments
The conversation shifts to GameStop's evolution from a traditional video game retailer to a company exploring diverse investment avenues. Becker points out the declining sector:
“When you think of GameStop, you think of that store that sells video games. That business itself has been in steep decline.” [00:45]
He discusses GameStop's multiple reinventions, from being a meme stock to its latest move into cryptocurrency investments.
Strategic Moves into Cryptocurrency
A significant portion of the episode is dedicated to GameStop's foray into Bitcoin. Becker details the company's financial maneuvers:
“It just announced that it’s borrowing in convertible debt another billion seven to invest in Bitcoin.” [01:10]
He notes that this is part of a broader strategy, mentioning previous investments:
“Previously, a few months ago, borrowed a billion three to invest in Bitcoin. So it’s essentially put about $3 billion into Bitcoin.” [01:25]
Implications of Diversification
Becker analyzes the implications of GameStop's investment strategy, questioning the disconnect between its original business model and its current investments:
“Realize it has nothing to do with the game business, which itself has been in steep decline for a long time, but it’s their constant trying to figure out what to be and what to do.” [02:00]
He expresses both fascination and skepticism about GameStop's direction:
“Just absolutely fascinating.” [02:15]
Future Outlook and Business Identity
Concluding the episode, Becker muses on GameStop's identity crisis and future trajectory:
“GameStop, maybe Pit Stop. Who knows what it should be called, but it’s certainly not really a video game company anymore.” [02:40]
He underscores the uncertainty surrounding the company's strategic choices and their impact on its market performance.
Conclusion
Scott Becker wraps up the episode by summarizing the key points:
- GameStop's Volatility: The stock's significant drop reflects underlying instability.
- Shift from Core Business: Transitioning from a video game retailer to a diversified investment entity, particularly in cryptocurrency.
- Strategic Risks: Large-scale investments in volatile assets like Bitcoin pose both opportunities and risks.
- Identity Crisis: Unclear business direction may continue to contribute to investor uncertainty.
Becker invites listeners to stay tuned for further analyses on GameStop's evolving business model and its implications for the private equity and business landscape.
Thank you for listening to the Becker Private Equity and Business Podcast.