4 ms·

But the brick and mortar distribution is hard to build and gives a structural advantage. As another poster pointed out, you could sell your items locally and no

But the brick and mortar distribution is hard to build and gives a structural advantage. As another poster pointed out, you could sell your items locally and not need to deal with shipping, communication with buyers and other stuff. It would reduce friction which might actually expand the marketplace significantly. I personally have multiple family members that throw stuff away because listing on eBay is too hard and pawnshops too sketchy

SwellJoe 6mo ago
Why does it give structural advantage to own a bunch of dead mall and strip mall brick and mortar stores that have been on the verge of bankruptcy for well over a decade?
- iinnPP 6mo ago
  GameStop in Canada owns stores in active malls and in standalone locations. Hard to see the store empty, even at 1030am on a weekday in November.
  - sanswork 6mo ago
    Gamestop in Canada isn't owned by Gamestop in the US. They were also historically unprofitable so people might be in the stores but they aren't buying enough.
    - iinnPP 6mo ago
      Now that you mentioned it, I seem to recall that news. The point stands that in some areas, that type of store can still perform. Perhaps they would come to an agreement.
- 59percentmore 6mo ago
  They haven't been on the verge of bankruptcy since they paid off their own loans. This deal will actually be the closest they've been to bankruptcy since like 2022, because they'll actually have interest payments to make.
  - SwellJoe 6mo ago
    That's an accident of becoming a meme stock. That's not a business model. Revenue continues to decline year over year. Nothing about the business has materially changed the trajectory they have been on throughout all of this. https://www.macrotrends.net/stocks/charts/GME/gamestop/revenue https://www.macrotrends.net/stocks/charts/GME/gamestop/reven...
    - 59percentmore 6mo ago
      https://www.macrotrends.net/stocks/charts/GME/gamestop/eps-earnings-per-share-diluted https://www.macrotrends.net/stocks/charts/GME/gamestop/eps-e... There's something else going on. The other companies known for being meme stocks are doing substantially worse in terms of share price. AMC is below what it was before early 2021, down 90% from its high. That holds for most of them. Bed, Bath, and Beyond famously went bankrupt. Meanwhile, yeah, Gamestop is down about 75% from its high. But it's also 2.5x its post-top low, and... um, about 24x its 2020 low. Go ahead and check. Makes at least some sense, when you understand that they stemmed an EPS bleed and turned it into a profitable company.
      - SwellJoe 6mo ago
        A sinking company buying a healthy company several times larger and more profitable doesn't make sense. The eBay board and shareholders would be crazy to participate in this fantasy. GME shareholders are already known to be of questionable judgment, so whatever they do is SNAFU. So, it's not surprising GameStop would try something crazy, what's surprising is anyone is taking it seriously.
        59percentmore 6mo ago
        I don't know what your issue with Gamestop is, but calling it "a sinking company" is wildly inaccurate, bordering on delusion.
        SwellJoe 6mo ago

SwellJoe 6mo ago

Why does it give structural advantage to own a bunch of dead mall and strip mall brick and mortar stores that have been on the verge of bankruptcy for well over a decade?

iinnPP 6mo ago
GameStop in Canada owns stores in active malls and in standalone locations. Hard to see the store empty, even at 1030am on a weekday in November.
- sanswork 6mo ago
  Gamestop in Canada isn't owned by Gamestop in the US. They were also historically unprofitable so people might be in the stores but they aren't buying enough.
  - iinnPP 6mo ago
    Now that you mentioned it, I seem to recall that news. The point stands that in some areas, that type of store can still perform. Perhaps they would come to an agreement.
59percentmore 6mo ago
They haven't been on the verge of bankruptcy since they paid off their own loans. This deal will actually be the closest they've been to bankruptcy since like 2022, because they'll actually have interest payments to make.
- SwellJoe 6mo ago
  That's an accident of becoming a meme stock. That's not a business model. Revenue continues to decline year over year. Nothing about the business has materially changed the trajectory they have been on throughout all of this. https://www.macrotrends.net/stocks/charts/GME/gamestop/revenue https://www.macrotrends.net/stocks/charts/GME/gamestop/reven...
  - 59percentmore 6mo ago
    https://www.macrotrends.net/stocks/charts/GME/gamestop/eps-earnings-per-share-diluted https://www.macrotrends.net/stocks/charts/GME/gamestop/eps-e... There's something else going on. The other companies known for being meme stocks are doing substantially worse in terms of share price. AMC is below what it was before early 2021, down 90% from its high. That holds for most of them. Bed, Bath, and Beyond famously went bankrupt. Meanwhile, yeah, Gamestop is down about 75% from its high. But it's also 2.5x its post-top low, and... um, about 24x its 2020 low. Go ahead and check. Makes at least some sense, when you understand that they stemmed an EPS bleed and turned it into a profitable company.
    - SwellJoe 6mo ago
      A sinking company buying a healthy company several times larger and more profitable doesn't make sense. The eBay board and shareholders would be crazy to participate in this fantasy. GME shareholders are already known to be of questionable judgment, so whatever they do is SNAFU. So, it's not surprising GameStop would try something crazy, what's surprising is anyone is taking it seriously.
      - 59percentmore 6mo ago
        I don't know what your issue with Gamestop is, but calling it "a sinking company" is wildly inaccurate, bordering on delusion.
        SwellJoe 6mo ago