Jim Cramer Says GameStop Is Arguably The Worst Company In America

GameStop Corp GME reported weak financial results for the fourth quarter late Tuesday and refrained from holding a conference call, which prompted CNBC’s Jim Cramer to throw a jab at the video game retailer.

What Happened: GameStop’s fourth-quarter revenue came in at $1.794 billion, below analyst estimates of $2.05 billion. The company’s earnings of 22 cents per share also fell short of expectations for earnings of 29 cents per share.

Although GameStop delivered disappointing quarterly results, management did not explain the weak performance on a conference call. The company has now left investors hanging without any executive commentary for four straight quarters.

“This is a situation where the best company in America has no conference call, Berkshire Hathaway, and arguably the worst, GameStop. Everybody else is in between,” Cramer said Wednesday on CNBC’s “Squawk On The Street.”

Cramer highlighted a note from Wedbush on Wednesday suggesting that “GameStop’s demise is coming.” Wedbush analyst Michael Pachter believed the video game retailer’s sales are in decline due to a mix of factors including a shift in software sales, fewer console releases and subscription services growth.

“In the end, you’ve got to have something that can’t be downloaded online, and they don’t,” Cramer said. “They’ve never really been able to reinvent themselves.”

GameStop’s video game business has been in decline for several years. The company received a lifeline in 2021 when the stock became a favorite name among retail traders who banded together to spark a massive short squeeze.

Since then, GameStop has tried to pull several different levers to broaden the company’s revenue streams including launching an NFT marketplace and appointing Ryan Cohen to CEO and letting him trade with company funds.

Wedbush on Wednesday predicted GameStop has a runway that will last no more than five years and called for the company’s demise at some point this decade.

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GME Price Action: GameStop shares were down 15.742% at $13.06 at the time of writing Wednesday, according to Benzinga Pro.

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