Gamestop Could Be Going to $0. Buy This Stock Instead.

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Key Highlights

  • GameStop’s stock has fallen 73% from its 2021 peak.
  • Analysts expect more downside for GameStop in the future.
  • Amazon benefits from gaming industry trends through Luna, Prime Gaming, Twitch, and AWS infrastructure.
  • The Motley Fool Stock Advisor recommends other stocks over Amazon currently.

GameStop’s Struggle in the Digital Age

Remember the days of 2021 when meme stocks like GameStop (NYSE: GME) and AMC Entertainment Holdings (NYSE: AMC) were skyrocketing? The surge was fueled by social media frenzies that sent their stock prices soaring, but alas, the euphoria didn’t last. Fast forward to December 17, 2025, and both stocks have seen significant falls—GameStop down 73% from its peak while AMC is down a staggering 98%. The market’s sentiment has shifted dramatically.

Amazon’s Rising Role in the Gaming Industry

The same digital trends that are hammering traditional brick-and-mortar stores like GameStop are actually benefiting tech giants. Amazon (NASDAQ: AMZN) has capitalized on several key areas:

  • AWS Gaming Infrastructure: Amazon Web Services (AWS) powers online multiplayer, game streaming, and patch/update delivery for many major publishers.
  • Luna: The company’s own cloud-based gaming service allows users to stream games directly from Amazon’s servers without needing physical hardware.
  • Prime Gaming: Amazon Prime members get free access to many Luna games and in-game items, further entrenching the ecosystem.
  • Twitch: The dominant game-streaming platform owned by Amazon integrates with Prime Gaming for cross-promotion.

The synergy between these services is clear. GameStop’s traditional retail model is becoming less relevant as more consumers opt for digital gaming experiences. Meanwhile, Amazon is diversifying its revenue streams and solidifying its position in the tech landscape.

Investment Advice: Where to Invest Now?

While it may seem like a no-brainer to avoid GameStop’s declining stock, the market can be unpredictable. However, our analysis suggests that Amazon is currently a better investment opportunity. The e-commerce giant has demonstrated robust growth and solid financial health:

  • Growth: Annualized revenue growth averaging 11.5% over the past three years with 13% year-over-year jumps in recent reports.
  • Profitability: Generated $10.6 billion of free cash flow, based on revenues of $691 billion and capital expenses of $120 billion.

The Motley Fool Stock Advisor has identified several other stocks with better growth prospects than Amazon currently.

Before making any investment decisions, it’s crucial to consider expert advice and thoroughly analyze the market conditions.

Remember, while GameStop may be on its way down, Amazon is positioned for continued success in a rapidly evolving tech landscape. But as always, investing comes with risks. Always do your due diligence before putting money into any stock.

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