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Market cap is now close to ~$11B, for a company that over the last 12 months burned ~$240M in cash. Revenues declined by ~11%. Net cash on hand is ~$600M. It's

by cs702 2y ago

Market cap is now close to ~$11B, for a company that over the last 12 months burned ~$240M in cash. Revenues declined by ~11%. Net cash on hand is ~$600M. It's hard to justify purchasing the shares at the current price based on the company's recent results. Its future prospects don't seem particularly promising either. A stock's price is set by the marginal buyer and seller. For example, a single share that trades at 50% less than the last price instantly brings market cap down by 50%. Once all the retail investors loading up on the stock have purchased as much as they can hold, very little marginal trading volume can bring the stock price back down.

paulpauper 2y ago
Retail volume is easily outmatched by hedge fund volume. GME has always fallen on heavy volume as hedge funds dump, like in 2021.
- cs702 2y ago
  If the price starts dropping, the fearful start dumping, and volume jumps. Sellers pushing the price down beget more sellers pushing the price down. Hedge funds will try to ride it up and down.
walrus01 2y ago
this is completely anecdotal but I recently went into an average sized mall based gamestop looking to browse for some used xbox games, and the selection was maybe 1/4 as large as it was 5 years ago. The PS4/PS5 selection was similarly bad. What there was an abundance of was funko pops and other random plastic objects and toys. Or things like $95 "gaming headsets" that looked equal in quality to what I could probably buy as a $40 full ear headset from some random brand name on Amazon . I understand that gamestop doesn't have any power to control microsoft and/or sony moving to an all-digital, one-purchaser, no-resale direct game sales model of downloading everything from a game app store, but I was left distinctly unimpressed.
- maicro 2y ago
  So GameStop bought ThinkGeek, killed ThinkGeek, and is now trying to become a worse ThinkGeek. That's...upsetting.
- wkat4242 2y ago
  Same here in Europe. I dont go there anymore. The PC section was already decimated and the hardware stuff they sell is nothing more than rebadged AliExpress crap. And yea tons of merchandise. It's not unique to GameStop, we also have a European chain called GAME which is the same. They're trying to revive themselves with second hand consoles and phones.
  - Semaphor 2y ago
    > It's not unique to GameStop, we also have a European chain called GAME which is the same. I was interested, because I’ve never heard of them, yet I know of GAME in South Africa. Looks [0] like GAME in UK is a UK-only chain, and GAME in SA is an eventually-owned-by-Walmart SA-only chain. [0] https://en.wikipedia.org/wiki/Game_(disambiguation)#Brands_and_enterprises https://en.wikipedia.org/wiki/Game_(disambiguation)#Brands_a...
    - wkat4242 2y ago
      Well yes, it's British but also active in Spain. Wikipedia says they are also active in Ireland but they left that country many years ago (it's annoying, nobody bothers with Ireland, there isn't even a real Apple store even though Apple has their own EU Headquarters there!). And apparently they were in Sweden too at some point: https://en.wikipedia.org/wiki/Game_(retailer)#/media/File:Game,_Ume%C3%A5.JPG https://en.wikipedia.org/wiki/Game_(retailer)#/media/File:Ga...
  - JetSpiegel 2y ago
    It's much better to just go to CeX, the (original?) Charlie Brooker chain. At least they are honest at being basically a pawn shop for games.
elzbardico 2y ago
Let's stop pretending stock prices still have any strong correlation with the real world. This is all a fucking game ripe with speculators, insider traders, funny QE money and hordes of addicts rolling the dices in hopes of beating the man.
- orionsbelt 2y ago
  As Ben Graham said: “In the short run, the market is a voting machine but in the long run it is a weighing machine.”
jcranmer 2y ago
Folding Ideas (of Line Goes Up and In Search of a Flat Earth fame) had a video on the Gamestop meme stock here: https://www.youtube.com/watch?v=5pYeoZaoWrA https://www.youtube.com/watch?v=5pYeoZaoWrA Apparently, the people still holding Gamestop have devolved into absolute insanity, somehow believing that the Mother of All Short Squeezes hasn't happened yet, and they need to hold on for dear life to perpetuate the short squeeze, which will cause absolute financial calamity as the Federal Reserve will pay those people millions of dollars per share to bail out the hedge funds. These are the people who are helping to prop up the share price.
- Lionga 2y ago
  [flagged]
  - HackerHustler 2y ago
    Bingo
  - tptacek 2y ago
    You made that money by taking advantage of other people exactly like you. You could do the same thing at a casino and it would be less morally fraught (and about as reliable).
    - Lionga 2y ago
      Money was of dumb shorts that got liquidated today. Not people like me, wether theses are hedge funds or small time wanna be traders i don't care. So smart to sell something you don't own and take on a potential unlimited loss. But yeha I am very morally fraught for buying and selling a stock, not people selling something they don't even have.
      - kasey_junk 2y ago
        Honestly curious, have you closed out your GameStop position or are you marking to market your shares?

by cs702 2y ago

paulpauper 2y ago

Retail volume is easily outmatched by hedge fund volume. GME has always fallen on heavy volume as hedge funds dump, like in 2021.

cs702 2y ago
If the price starts dropping, the fearful start dumping, and volume jumps. Sellers pushing the price down beget more sellers pushing the price down. Hedge funds will try to ride it up and down.

walrus01 2y ago

this is completely anecdotal but I recently went into an average sized mall based gamestop looking to browse for some used xbox games, and the selection was maybe 1/4 as large as it was 5 years ago. The PS4/PS5 selection was similarly bad. What there was an abundance of was funko pops and other random plastic objects and toys. Or things like $95 "gaming headsets" that looked equal in quality to what I could probably buy as a $40 full ear headset from some random brand name on Amazon . I understand that gamestop doesn't have any power to control microsoft and/or sony moving to an all-digital, one-purchaser, no-resale direct game sales model of downloading everything from a game app store, but I was left distinctly unimpressed.

maicro 2y ago
So GameStop bought ThinkGeek, killed ThinkGeek, and is now trying to become a worse ThinkGeek. That's...upsetting.
wkat4242 2y ago
Same here in Europe. I dont go there anymore. The PC section was already decimated and the hardware stuff they sell is nothing more than rebadged AliExpress crap. And yea tons of merchandise. It's not unique to GameStop, we also have a European chain called GAME which is the same. They're trying to revive themselves with second hand consoles and phones.
- Semaphor 2y ago
  > It's not unique to GameStop, we also have a European chain called GAME which is the same. I was interested, because I’ve never heard of them, yet I know of GAME in South Africa. Looks [0] like GAME in UK is a UK-only chain, and GAME in SA is an eventually-owned-by-Walmart SA-only chain. [0] https://en.wikipedia.org/wiki/Game_(disambiguation)#Brands_and_enterprises https://en.wikipedia.org/wiki/Game_(disambiguation)#Brands_a...
  - wkat4242 2y ago
    Well yes, it's British but also active in Spain. Wikipedia says they are also active in Ireland but they left that country many years ago (it's annoying, nobody bothers with Ireland, there isn't even a real Apple store even though Apple has their own EU Headquarters there!). And apparently they were in Sweden too at some point: https://en.wikipedia.org/wiki/Game_(retailer)#/media/File:Game,_Ume%C3%A5.JPG https://en.wikipedia.org/wiki/Game_(retailer)#/media/File:Ga...
- JetSpiegel 2y ago
  It's much better to just go to CeX, the (original?) Charlie Brooker chain. At least they are honest at being basically a pawn shop for games.

elzbardico 2y ago

Let's stop pretending stock prices still have any strong correlation with the real world. This is all a fucking game ripe with speculators, insider traders, funny QE money and hordes of addicts rolling the dices in hopes of beating the man.

orionsbelt 2y ago
As Ben Graham said: “In the short run, the market is a voting machine but in the long run it is a weighing machine.”

jcranmer 2y ago

Folding Ideas (of Line Goes Up and In Search of a Flat Earth fame) had a video on the Gamestop meme stock here: https://www.youtube.com/watch?v=5pYeoZaoWrA https://www.youtube.com/watch?v=5pYeoZaoWrA Apparently, the people still holding Gamestop have devolved into absolute insanity, somehow believing that the Mother of All Short Squeezes hasn't happened yet, and they need to hold on for dear life to perpetuate the short squeeze, which will cause absolute financial calamity as the Federal Reserve will pay those people millions of dollars per share to bail out the hedge funds. These are the people who are helping to prop up the share price.

Lionga 2y ago
[flagged]
- HackerHustler 2y ago
  Bingo
- tptacek 2y ago
  You made that money by taking advantage of other people exactly like you. You could do the same thing at a casino and it would be less morally fraught (and about as reliable).
  - Lionga 2y ago
    Money was of dumb shorts that got liquidated today. Not people like me, wether theses are hedge funds or small time wanna be traders i don't care. So smart to sell something you don't own and take on a potential unlimited loss. But yeha I am very morally fraught for buying and selling a stock, not people selling something they don't even have.
    - kasey_junk 2y ago
      Honestly curious, have you closed out your GameStop position or are you marking to market your shares?