We won’t go too deep into the stock-buying frenzy of the GameStop brand.
But we're curious. Why GameStop?
Reports suggest it’s just a coincidence.
It was picked because its stock price was so low. And raising the stock price hurts short sellers, hedge fund managers and the like.
You know, the ones. Check out the movie, The Big Short, to see these people.
The Reddit folks buy cheap stocks because they knew short sellers make money when they bottom out.
Of all the crappy stocks to build up, why GameStop?
As brand strategists, we know people act based on emotion.
Keeping that in mind, let's examine GameStop. Which feels like RadioShack from a few years ago.
GameStop is facing the same situation. As gamers move away from physical media, the retailer hasn’t adapted.
Like RadioShack, GameStop's only made superficial changes.
But, like RadioShack when it had an opportunity to act, there is brand equity in GameStop.
For years, it was the mecca for gamers to swap out games.
Are those WallStreetBets demonstrating an emotional preference by focusing on the GameStop brand?
How many of them planning on Reddit are gamers who once coveted the brand?
And GameStop, now with its profile suddenly raised, would be wise to adapt now.
Slay the sacred cows, put everything on the table and completely rebrand.
Think of cheers from the gallery if that happened.