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The fact that the stock is still up >$110 from <$20 suggests that his value hypothesis wasn't completely wrong. Prices reflect current demand and viral meme dem
by barrkel 5y ago
The fact that the stock is still up >$110 from <$20 suggests that his value hypothesis wasn't completely wrong. Prices reflect current demand and viral meme demand should have long ebbed away by now.
- Macha 5y agoI think there's still an aspect of inflation going on right now. iirc, DFV's proposition (as also mentioned in the congress hearings) was that it was a $20 stock that should be more like a $50 stock because rumours of the demise of video game retail were overstated. If it wasn't for covid, he was probably right on that. He just made the case for a stock which he had an investment in, laying out his reasons, and being upfront about his interest in it. It was the meme brigade that sent it to $400 which obviously DFV made quite a lot on, but I don't see any evidence that this was planned on his behalf or incited illegally. I think he would have been quite happy if his projections of the PS5/XSX generation had given him the returns he predicted in a 5 year timeframe.
- Traster 5y agoI don't think the current stock price tells you that. You can make an argument that GME was undervalued relative to it's core performance metrics before this whole saga (revenue, eps, etc) but you don't strengthen that by pointing to the current share price, because based on those exact same metrics GME is currently way over valued, which indicates it current share price isn't based on fundamentals now.