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Better Buy: Amazon vs. GameStop

TheMotleyFool

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Better Buy: Amazon vs. GameStopPhoto, wide shot, wide-angle lens, Computer hardware manufacturer, sunset photo at golden hour, photo by Art Wolfe: https://img.midjourneyapi.xyz/temp/7835e381-fcae-4834-ba93-4708292dc055.png

Amazon (NASDAQ: AMZN) and GameStop (NYSE: GME) went in opposite directions over the past five years. Amazon's stock surged nearly 500% on the strength of its e-commerce and cloud businesses, but GameStop's stock plunged 90% as sluggish mall traffic, competition from bigger retailers, and the rise of digital downloads gutted its business.

The COVID-19 crisis amplified those differences, with Amazon fulfilling orders throughout the pandemic as GameStop closed its brick-and-mortar stores. At first glance, the choice between these two stocks seems simple: Amazon offers long-term growth, while GameStop is headed off a cliff.

Image source: Getty Images.

Source Fool.com

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