CNBC's Jim Cramer on Wednesday told investors that GameStop increasingly feels like a special purpose acquisition company as the videogame retailer's primary business struggles, but it still manages to raise cash.
"Doesn't have to be a full plan, could be the mere idea of a plan, but so far, GameStop doesn't even have that — or if they do, they sure haven't shared it with us."
The company managed to turn a profit due to interest on the $4.2 billion it has in cash, not underlying business.
He agreed with an analyst from Wedbush who suggested the company close its physical stores and operate as a bank.
"Ultimately, GameStop's always vulnerable to a short squeeze because, based on whatever nonsense the memesters can temporarily cook up," Cramer said.
Persons:
CNBC's Jim Cramer, haven't, Wednesday's, Cramer, it's, Wedbush, he's, GameStop's
Organizations:
Wednesday, GameStop