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GME has now become a $25B hedge fund with a gaming focus. I think you're confusing their market cap with their balance sheet. A $25B hedge fund has $25B in ass
by NickM 6y ago
GME has now become a $25B hedge fund with a gaming focus.
I think you're confusing their market cap with their balance sheet. A $25B hedge fund has $25B in assets, but a $25B market cap does not mean that they have access to anywhere near that amount of capital.
Sure, maybe they could issue a dilutive follow-on offering and bring in some cash, but who knows where the stock price will be by the time they get through the paperwork on that. And they're currently losing about half a billion per year on about $6B in revenue, so I'm not sure that an extra billion or so in cash is going to fundamentally remake the company....
- breck 6y agoYou're right, I'm off by an OOM. I think perhaps comparing them to a $2.5B hedge fund might not be out of the ballpark. Didn't know about the $500M lost on $6B in revenue, but gaming is a growing market, they just got a ton of free advertising, so seems like they have a chance to do something great.