Gamestop could reach $0. Buy this stock instead.

Remember the meme stock surge of 2021? My God, how time flies.

It’s been almost five years since social media posts triggered short squeezes Stoppage of play (GME 1.04%) And AMC Entertainment Holdings (AMC 0.86%) actions. From the closing bell on January 20, 2021 until the close on January 27, 2021 (just a week later), AMC stock soared 570% while GameStop soared 788%.

But the joy didn’t last long. AMC stock is down 98% from that high and GameStop is down 73% as of December 17, 2025. The average analyst recommendation for GameStop is Underperform with a price target 41% below the current level. Keep these expected price drops going for a few more years, and there won’t be much left.

I hate to say it, but GameStop is starting to look obsolete. When was the last time you bought a video game from a local store instead of just downloading it to your favorite console? GameStop stock could very well fall to zero in the long term.

Amazon eats GameStop’s lunch

On the plus side, I can recommend one of GameStop’s main competitors for fresh money in 2026. The same shift in the digital industry that is destroying GameStop also has big winners. Especially, Amazon (AMZN +0.05%) benefits in several ways from the trend towards downloading games.

• Amazon Moon: The e-commerce giant has its own cloud-based gaming service: no discs, no downloads, just run the games on Amazon’s servers and stream the experience to your favorite web browser or mobile device.
• Top Games: Amazon Prime subscribers have free access to many Luna games and in-game items.
• Digital game sales: Amazon sells download codes for Sony PlayStation, Microsoft Xbox, Nintendo Switch and PC games. You get the same product as GameStop, with no retail footprint needed. It’s true that every gaming platform also offers direct downloads, but Amazon helps you organize your game purchases across many types of devices.
• AWS Gaming Infrastructure: Amazon Web Services (AWS) manages online multiplayer, game streaming, and patch/update delivery for many major publishers. This way, Amazon benefits whether you play on PlayStation, Xbox or PC.
• Tic: Amazon owns the dominant video game streaming platform. Twitch also integrates with Prime Gaming for cross-promotion.
• E-commerce for hardware: And Amazon is happy to serve you if you’re looking for consoles, controllers, or accessories (the physical items that GameStop’s brick-and-mortar stores rely on).

The game is just a bonus; Amazon is a good buy anyway

And here’s the best part. With or without its strength in the gaming industry, Amazon stock is a fantastic buy right now.

Amazon’s annualized revenue growth has averaged 11.5% over the past three years, with a 13% year-over-year increase in the last two reports. The company generated $10.6 billion in free cash flow over the last year, based on massive revenue of $691 billion. And $120 billion in capital spending. These artificial intelligence (AI) data centers won’t build themselves, you know.

This trillion-dollar tech titan earns its market cap honestly, with excellent financials and solid growth prospects. Sorry, GameStop, but Amazon is the first place I would start looking for a purchase related to the video game industry.