GME Bear Case

• GameStop has an outdated business model that is ineffective in the modern video game industry, and any attempts at turning the company around are futile
• GameStop's revenue continues to go down year over year, and GameStop continues to close stores and reduce staff
• GameStop's competitors (e.g. Amazon) are much stronger companies and therefore better investments
• GME is an invalid investment because it is a meme stock (or a cult stock)
• The company has no clear strategy; Ryan Cohen does not provide any guidance, thus the future of GameStop is uncertain
• The stock price is down since its peak and it remains overvalued and is therefore destined to continue going down

During GameStop's downfall era, betting against GameStop by shorting the stock was a generally reasonable financial view. The company had very weak financials with a poor long-term outlook.

However, GameStop's financial circumstances have changed significantly since then, so it is now a much different calculation with different valuation and different risks.