Can the GameStop share price climb higher?
The GameStop (NYSE: GME) share price has been one of the most interesting stock markets stories of the past year. Shares in the company have whipsawed as a tug of war has developed between smaller investors and hedge funds on Wall Street. However, recently, an uneasy peace has developed. Shares in the specialist computer gaming retailer have bobbed around the $200 per share market since March. Over the past 12 months, the stock has increased in value by around 4,800%. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... But while the GameStop share price has taken on a mind of its own, the company has been working to transform its business model. Moving online  Traditionally, the company has operated a brick-and-mortar-store-orientated business model. But its been investing more in online operations more recently. GameStop announced it had taken a lease of a 530,000 sq ft fulfilment centre in Reno, Nevada, in its latest online expansion. This new facility will help the group expand its e-commerce operations across the west coast. This expansion follows GameStops entry into a lease of a 700,000 sq ft facility in York, Pennsylvania. The companys share price performance has actually helped its transformation programme. As investors have clamoured to buy GameStop stock, the firm has raised $2bn by issuing new shares. This has provided much-needed capital for the group to spend on its e-commerce business. Interestingly, the rally in the GameStop share price has inspired a virtuous cycle. The company was struggling for funding before investors took notice of the business. As its valuation has increased, its been able to issue more shares and reinforce its balance sheet (AMC has been able to do the same). With more capital to play with, the company has actually become a better investment, and its fundamental value has increased. I think theres now also a chance that if GameStops e-commerce drive starts to pay off, shares in the company could head even higher as the market reevaluates the businesss potential. GameStop share price risks  Of course, the companys success in this market is far from guaranteed. Its going to have to take on larger, more established competitors. Even with the GameStop share price at $200, I think its unlikely the company will be able to raise enough capital to compete effectively with its multi-trillion-dollar peers. While I do think the company has potential, I wont buy the shares today. Although GameStops growth efforts are starting to yield results, Id rather wait and see how the firms transition evolves before buying. I think itll encounter many challenges in the months and years ahead. Its unclear how the business will be able to deal with these challenges. As the company pushes ahead with its growth plans, I should be able to build a better picture of its long-term potential. Thats why Im happy to sit on the sidelines for the time being.