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> most analysts Counterpoint: "Most analysts" are hum-drum Wall Street hacks who cover dozens of companies and don't really have a clue about how the lion's s
by totalZero 6y ago
> most analysts
Counterpoint:
"Most analysts" are hum-drum Wall Street hacks who cover dozens of companies and don't really have a clue about how the lion's share of them are run. I remember a few years back there was one analyst who kept talking about how NAND keeps getting cheaper and that's hurting memory suppliers...but the analyst's metrics didn't normalize for advancements in NAND speed nor the maturing of capital investments, so the analyst was basically looking at totally expected price declines over time and interpreting it as for some kind of static commodity while claiming it as a bear thesis.
A few of them are really clever and knowledgeable. The rest are chumps.
It's extremely difficult to judge GME based on regular metrics because their long-term outlook is a function of strategy and their short-term survival is a function of COVID. Sure, the company sells stuff that you can buy online, and sure, they sell it at malls and other places where nobody goes these days, but its stock was over-shorted and this was going to happen sooner or later anyway.
Maybe my numbers are off, so correct me if I'm wrong....At today's closing price, GME, which has $6B/yr revenue, is worth a sixth of BBY, which has 43B/yr revenue.
- hoten 6y agoComparing revenue might make sense if they were in the same slice of retail, but they aren't, so I think you can take zero value from such a comparison.
- totalZero 6y agoLol. "This is flawed so it is worth zero" is a bad argument even when you present an alternative, but it's downright lazy when you just mail in the criticism without suggesting something else. GME sells consoles and consumer electronics in addition to games, so I'd put BBY on the short list of comps for sure. But if you think the product mix is so different as to make them incomparable, that's ok. Pick a better metric and explain why GME was accurately priced at $260mm market cap when the company does billions in revenue. Then, go back and explain why AMD was worth $2/share in 2014. Then, go to every other heavily shorted name and wave your hands around looking for reasons to justify obviously overshorted valuations.