Why Shares of GameStop Are Falling Today

Shares of GameStop (NYSE: GME) tumbled lower after it was reported that Netflix (NASDAQ: NFLX) had hired a former executive at Facebook and Electronic Arts to help it expand into video games. GameStop shares were trading down 13.1% as of 11:18 a.m. EDT on Thursday.

GameStop's stock price has skyrocketed this year, with some investors hoping the video game retailer can make a comeback with efforts to close underperforming stores and ride the upgrade wave with Sony and Microsoft's new game consoles. While the Netflix news doesn't look good, it doesn't change the competitive pressure GameStop had already been experiencing in the video game retail market. However, there is a glimmer of hope.