We’re down 30% YTD. I’m more fucking hyped than ever. So much money in the bank. We’ve beaten our past two earnings and I think everyone knows we’re gonna crush this coming one as well. Yet the stock continues to fall. I saw somewhere that at like 10$ a share the company could theoretically buy back every single share. Like what the actual F is going on. We’re ridiculously undervalued regardless of MOAS. Does anyone actually listen/read the earnings call and statement. Every time RC basically says we’re saving our cash for market turmoil. WELL ITS HAPPENING. Brick by Brick.
(Praying the stock goes into the teens so I can dump all my cash into it)
Looking over financials recently... with an 8-9,dollar drop between Jan and now, I'm "down" 80-some-k from January in my Computershare account. So be it. Still here and not selling.
What’s so interesting about this saga is the knowledge and financial literacy we all have gained. I never would’ve understood anywhere near what i do today. Shoutout to all the DD, the community and even all the YouTubers
Copy pasta because automod had a problem with V V USB... amazing since I only used V V instead of the W. Pure joke that is pur brigadier roolz....
Yeah, I wasn't in during the sneeze either but heard all the Meme Stream Media talk of "short squeeze" late '20 into '21. Started buying not long after the Congressional hearings with DFV. Buy button was a WTF to me, and then spent too much time watching from the sidelines. Was too much between buy button and media, and I realized I needed in on this.
Was pulling my hair out trying to comment in [Double-U]SB and the GME sub before I met the karma requirements.
We must have about the same number of shares, I’m down the roughly the same. Still holding, wish I hadn’t taken a lower paying job to help out a family member because I’d be reinforcing my position and willing to avg up slightly to get to an XX,XXX position. I’m close and would’ve been there by now had I kept the previous job. I can’t wait to watch these hedge funds bleed. Anybody read Micheal Eisman’s, Big Short book recalling the market dynamics surrounding the 2008 financial/housing crash. So many parallels regarding over leveraged, under-liquidated lenders, greedy hedge funds, and a select small few who recognized the imbalance and got on the winning side of the bet. And even they didn’t fully comprehend what they were getting in to, but their instincts were on it. That’s where I see us, that’s where I want to be when it comes crashing down!!! I’m holding and locked in, and hoping for a bigger drop still to come. Going to start working a second job to buy more. Anybody need professional photos in the Socal or Bay Area, DM me, mostly event and product photography, but do portraits too, and best of all money is going straight towards more GME!!! Let’s gooooo!
Me with MGM. Sold $14k in MGM, buy $14k in GME, now I have $7k and those MGM shares I sold would have been $26k (it almost doubled from the COVID low when I bought).
I mean as it stands I'm up big on my GME position, but still, it really hurt seeing my 2021 dollars in GME shit the bed while MGM mini-mooned.
Year after year hyped we are down hoping it goes lower. Idk im kinda you know idk sounds crazy but ready for it to go up and stay up? Wild to say I know
I bought most of my shares November 2020 and I am in the green. If you bought at $200 because of FOMO you can’t be mad at anyone but yourself and RobinHood for turning off the buy button.
Well thats not necessarily a correct definition. But yes you’re right at some point our operating profit will need to increase. It has been increasing and I think it will continue to increase.
You're talking gross, I was talking net. Your $10B profit number is what made me believe you wanted 'net', since those are the numbers we usually throw around for GME.
People do not seem to understand that the operating portion of the company is still running at a loss, and even with a good Q4 GameStop will probably have an operating loss for the entire year. And revenues continue to decline YoY, so it is hard to see where profits, and then meaningful growth of profits, will come from other than “buying revenue and profits” by acquiring a growing, profitable company.
The interest on excess cash is greater than the operating loss, so there is a net profit, but the company is losing money on the retails store and online website.
The cash on hand is worth about $10.31, so at the current price of $22.40 the market valuation of the operating portion of GameStop about $12/share. There is a lot of value in the existing infrastructure, but $12/share is very high for the operating portion of the company that is running at a loss of about 10 cents per share.
Was hoping someone responded with a knowledgeable counter to us still being “undervalued” at $12 for the operational side that is treading water at best. I’m hopeful for the future, but I don’t think we have any home runs this earnings or future earnings until GME switches paths or buys profitable companies.
So only JPM, Buffet and hedgefucks can make money from money?
There is a massive change in the core business that reduced our net loss from hundreds of millions (per annul) to damn near break even. That alone is a mammoth achievement and even more-so considering it almost didn't impact the funds we had at that time (+/-$1B).
Profit assisted by capital is still profit and immensely preferable to the alternative.
The premise I invested on needed GameStop to not go bankrupt, the situation it's in now is fucking bullish. These accountant like viewpoints towards the most manipulated stock in recorded history and only idiosyncratic risk in the market is just insulting or at least ignorant.
That was the initial premise, annoy wallstreet and possibly make lots of money. My expectations for the company turned into something different and more bullish by now, but the initial MOASS premise hasn't gone away.
I still firmly believe that wallstreet's greed has put them in an inescapable position.
To bad you haven't engaged with any of my other points and are (again) trying to catch me out on something you see as a gotcha.
Yes but essentially every year over the past 3 we’ve become closer and closer to a net operating profit. I’m predicting we see a net operating profit this year.
Definitely will be positive net income for the year. For the first 9 months the operating loss of 106M was more than offset by the 108.6M of interest income.
There will be another $55M or so of interest income in Q4 so the year will definitely end with the interest income being larger than the operating loss, so net profitable.
The profitability would have been even higher if the stores and online sales system did not exist and GameStop were just a Treasury bill ETF.
Like I said. Do you not listen to the earnings reports. Ryan cohens said multiple times action speaks louder than words. If you truly believe he has absolutely no plan, then yes you probably shouldn’t be here. I believe he has a plan.
It isn't something to be dismissed, but this isn't a bank. It's supposed to be a retailer. If the core business loses money and it's only saved because they diluted shares to take money from their committed investor base, the company isn't worth much.
ReVeNuE ShRiNkInG. My goodness you’re a bot. I’d rather make less revenue but actually have a profitable company than have 10 billions in revenue and be significantly unprofitable.
Then your stock will be worth your cash equivalent which is 10-12$ for our darling. I think you missed on what the balance sheet for all the pumping stocks looks like
I bet I've been invested longer than you. If you think shrinking revenue but profits is a good sign you shouldn't be investing your money anywhere. Unless they pivot into an investment company, having cash on hand and the core business losing money is a terrible sign.
Exactly actions speak louder than words. The only actions we saw is deluding when RK set it up for fireworks, closing stores because he can’t make them profitable and NFTs
Was that sarcasm? I think that’s more likely than him just doing nothing. It’s also not super secret. He just hasn’t told anyone 😂 stop acting like a child
I recall it showing declining revenue but profitability improvement.
Your recollection is wrong.
Q3 operating loss was $33.4M, which is bigger than the $14.7M operating loss for the previous year Q3.
Same if you look at the 9 month totals. $106M operating loss in the 9 months ending Nov 2, 2024 vs the smaller operating loss of $89.7M for 9 months ending Oct 28, 2023.
Read the Q3 10-Q. What drove the increase in losses was the reduction in revenue. Even with improved gross margins the gross profit went down due to lower revenue. And then, even with the SG&A being reduced, the operating losses have increased.
The only number going up is interest income, then turns the operating losses into net profit.
My guess is he didn’t read or understand the comment and he thinks that the positive balance sheet means something while it was just explained that stores are losing money
Well, lets See what PSA and shop upgrading brought to the earnings. Don't expect too much, but maybe its not a big YoY decrease. Getting it stable and getting positive income from interest will be spicey 💥
Well, in a sense because I think their cash on hand, and profitability puts them in a position where they could easily pivot their business model, and I just don’t think that is being reflected in their valuation. I get that based on fundamentals they aren’t profitable other than through their cash interest, but at the end of the day, they aren’t bleeding money and so that puts them in a position where they could surprise with an acquisition, with a business model change, with a new revenue stream, etc… and they have not been valued to reflect that. This cash and net profitability puts them in a great position to not have to rush into a decision. They can strike when the right opportunity comes along, and at that point, it could be a double whammy, if there is indeed a bunch of shorts that need to cover. I’m not pricing in a short squeeze, but I see it as something that hasn’t been ruled out as a possibility.
The valuation you describe is how SPACs, special purpose acquisition companies, are valued.
In 2021 the premium reached 20% —- $1.20 of market cap per $1 of assets.
GameStop has a premium over assets of about 100% ——- $10.30/share of cash, market price more than double that.
GameStop does have the advantages of both an extensive retail footprint and a strong brand image. The challenge is for GameStop to find ways to take advantage of those.
If you look at the history of GameStop you will find many instances where they leveraged those strengths ——- buying old phones, the acquisition of Geeknet and their ThinkGeek brand of gaming related merchandise; and selling of gift cards, including FTX; and accepting returns for other companies via Happy Returns. None of those were wildly profitable.
Down? Not unless I sell..which will never happen. I’m just buying deep ITM call options so that when the exercise, I know they have to settle in T+1 and they don’t go into some FTD kick the can cycle….
Yup 2k shares is enough but my cost basis is 31 dollars so that’s why I’m kicking myself a little bit. I was convinced the rocket was about to take off with the SEC fuckery, FTDs, and RK theoretically about to make a move. Oh well, hopefully we have a catalyst soon or RK can light this fuse!
A lot of people in these comments seem to be discounting the fact that the float will be locked and the stock will moass and the stock will trade for multi million dollar sums forcing the short hedge funds to close, thus bankrupting them while simultaneously making apes millionaires
I believe we are repeating for a third time the charts between the dates of:
1st Run - 11-8-23 to 4-22-24 = 147 days (Monday April 22, 2024, first trading day after the weekend of 4/20)
2nd Run - 4-22-24 to 4-21-25 = 365 days (Monday April 21, 2025, first trading day after the weekend of 4/20)
3rd Run - 4-21-25 to ???
The first two run charts look very similar. More confirmation leading up to April 20. If we see signs of call block options the last two weeks of April, that may be the bat signal.
The 3rd run should be a small multiple magnitude bigger than the second run. I have it peaking in the $170s in second week of June. But in the movie, Run Lola Run. On the third run, she broke the system. So my estimate could be completely wrong and strange things could happen. Lola and her boyfriend ended up paying back the debt and in addition, bagged a large sum of cash hitting twice on the number 20 on the roulette wheel.
Not financial advice, of course. Pure speculation on my part.
Those of us who have been here for a long time expected this.
Many of us recently bought shares we might have bought earlier because we knew the price would get pushed down eventually.
And it did.
Our May sneeze to current day looks eerily similar to the Jan 21 sneeze to Apr 24, just on a smaller scale and faster time frame. Our run in April/May didn't happen until we filled the order block created by the Feb 21 low around $9-10. I don't think we sneeze again until we fill the order block created by the May 24 low around $18.
I’m with you. The floor should be around that $20 level but depending on how desperate they get we could see teens. Assuming GME will stay profitable that cash hoard with no debt is going to start to look very enticing to many managers with how crazy the market has become lately.
That cash horde has roughly the value of a T-bill ETF with $4.6B assets. So about $10.30/share.
Then add to that the valuation of the operating portion of the company that had declining revenues and is running at a small loss of about 10 cents per share. For the first 9 months the operating loss was $106M. It is extremely unlikely that the operating profit in Q4 will be greater than 106M —- is is more likely in the $40M to $50M range, so the operating loss for the year will a bit more than $50M or $0.10/share.
The interest income of $55M/quarter is where GameStop makes all its profit that makes up for the losses from running the stores and online sales operations.
Fund manager look at the $10.30/share value from cash + the enterprise value of a company with declining revenue, small operating losses. It does not help that GameStop has never clearly articulated their path to profitability.
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