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It depends. If Gamestop is able to find the efficiencies that the CEO is claiming, EPS jumps between 50 and 100 percent. Gamestop shareholders get diluted down
by 59percentmore 6mo ago
It depends. If Gamestop is able to find the efficiencies that the CEO is claiming, EPS jumps between 50 and 100 percent. Gamestop shareholders get diluted down to owning a smaller piece of a much bigger earnings pie. That's if you don't engage in any conspiracy theories about how many shares retail traders really own (don't go down that rabbit hole).
Suffice it to say, the Gamestop's price floor has gone up each time it's been diluted in the past few years. Perhaps lower highs, but higher lows. And a company that can afford to try a stunt like this.
- graemep 6mo agoTrue, that is why I said "very possibly". The market seems mildly positive about i so far. its a big promise. Is Ebay really THAT badly run that they can find such efficiencies?
- notahacker 6mo agoThe market being mildly positive probably doesn't mean much when it's a memestock...
- turtlesdown11 6mo ago> Is Ebay really THAT badly run that they can find such efficiencies? Well, we should point out that Gamestop hasn't grown their own business - they've lost 50% of revenue since 2020. Why would anyone trust that management to "turn around" another business?