It was only six months ago when investors, including Jim Cramer, wrote off GameStop as a failure and left it for dead. After one miserable quarter after another, the stock was consistently crushed and most assumed it was roadkill.
So then what the heck happened that it was able to pull off such an amazing turnaround?
One year ago GameStop was viewed as short-sellers paradise, as the bricks and mortar videogame retailer had gone into a long-term decline due to the rise of digital downloads. After all, why would you buy games in a store when you can download them directly onto your computer?
"We know that companies can change their stripes, and that's exactly what occurred with GameStop. As this company's stock was getting viciously beaten last year, management realized that they had to take action in order to stay relevant," the "Mad Money" host said. (Tweet This)
In a small amount of time, GameStop has managed to remake itself so dramatically that some might not even recognize it anymore. It is no longer just a chain of bricks and mortar videogame stores; it also has a multichannel retailer of videogames, consumer electronics and wireless services. Meaning, GameStop is now diversified.