Why GME And BCE Are Slumping Today

GameStop (GME) and Canadian telecom company BCE (BCE) are among today’s losers, falling 6% and 4.5%, respectively.

GME Closing Stores, Planning PR Offensive

According to multiple, recent reports, the video game retailer intends to close down over 100 stores in January. In 2024, GME reportedly shuttered over 200 locations. In the past, many brick-and-mortar retailers that shut down a high number of their stores have ultimately ended up going bankrupt.

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Separately, on Jan. 10, The New York Post reported that GameStop was looking to hire a publicist. The publicist’s mission will be to boost the public image of GME CEO Ryan Cohen, and he or she will probably also seek to improve consumers’ view of GME as well, the newspaper asserted.

BCE Was Downgraded by Bank of America 

Bank of America lowered its rating on BCE to Underperform from Neutral. The bank is worried about the company’s debt levels and the sustainability of its dividend. According to Bank of America, BCE will “underperform its peers” until it finds ways of addressing those two issues.

Additionally, the bank believes that all Canadian wireless companies lack pricing power and are likely to be hindered by slowing immigration. Bank of America does not expect the firms’ pricing power to rebound “in the short term.”

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Disclosure: None. This article is originally published at Insider Monkey.