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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
by 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 agoGameStop 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 agoGamestop 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 agoNow 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 agoThey 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 agoThat'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 agohttps://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 agoA 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 agoI don't know what your issue with Gamestop is, but calling it "a sinking company" is wildly inaccurate, bordering on delusion.
- SwellJoe 6mo agoWhat would you call a company with revenue that declines every year for a decade?
- 59percentmore 6mo agoShrinking. Which is smart, if you see a recession on the horizon or in-progress. If profit is increasing anyway? Well, that's either a miracle or someone who really knows what they're doing. You understand that profit is supposed to go DOWN when revenue declines, right? Which is bad. But Gamestop is doing the opposite. Which is...?