Video game news oriented community. No NanoUFO is not a bot :)
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Congrats to GameStop on being described as "struggling" when I would've expected "defunct" by now.
Them going "retro" makes sense to me. I happened to be near one of their locations the other day and remembered that the last time I went in there it was to ask if they still had a bin full of second-hand PS3 discs somewhere. All I got was a succinct "no."
For fun while walking by, my wife and I went into one last year. There was a small section of games. 80% of the store was those Funko dolls and "nerd" memorabilia to put on a shelf or desk.
Meanwhile our local Game Stop is being turned into a Wing Stop.
The third location in the mall near me closed. The THIRD FUCKING location, now there are still two gamestops in one mall.
Well we have only one in our mall. But two Bath and Bodies.
Oh no, no, no. How could they even be struggling? They ignore all of their customers and try to rip them off repeatedly. That's just good business, brick & mortar style. /s
I'll never forget my brother heading to GameStop to grab me a copy of Halo 3 for like $15. Dude in front of him in line was trading in a steel book edition. Got offered like $4 and thankfully my brother is an extrovert and went "I'll give ya $20" which is what I'd sent him with.
Are they struggling? Last I checked they had like a full literal billion in cash on hand.
For a company the size of GameStop, I feel that $1B isn't as much as it sounds like.
More than Spirit had.
Bad dum tss
You would be surprised…
They’re sitting on $9bil in cash and securities, $2bil of that was made last year alone. They’re hardly struggling
Cohen is trying to meet the requirements and unlock his 30 billion bonus for growing the company by buying a bigger one.
seems like hes trying to pull a musk, but he would need to have funding from other investors to do that.
I mean they MAY have cash on hand but looking at revenue is different. I may have 100k in the bank but if I'm unemployed and have no income that won't last long. They need a source of income and with most game purchases going online that won't work so they need something else.
Ebay is probably too big of a target for them though...
They've posted several back to back profitable quarters if I'm not mistaken.
Really? Not just stock price goes up but actual profit? I know they went into funko pops and such but surprised that can cover the cost of their stores and land...
Unless I'm reading this chart wrong, yeah:
https://www.macrotrends.net/stocks/charts/GME/gamestop/eps-earnings-per-share-diluted
Interesting, seems to be very volitile but still looks overall profitable. I'm surprised, thanks for the information.
Throwback to that time I questioned DRSyourGME, and absolutely nobody had any form of coherent defense.
Recently found out the GameStop in the Dover mall shut down, this year. I'd frequented it when it was still Electronics Boutique. Last time I visited it, it was a sad and sparse clearing-house for Funko Pops, and I didn't even make a complete loop of the store before noping out. Long gone were the days of naked Game Boy games on a register carousel, let alone 3DFX hardware, or shareware CD-ROMs for a couple bucks. I think the last thing I bought for myself in a GameStop was a copy of Nemesis in Albany circa 2007.
In fairness - they've leveled off, since that disastrous thread from three years ago. Fuck knows why.
The problem is none of that matters. That's not the core of the GME stuff.
Simply put, the guy DFV who bought in when GameStop was like 5 bucks a share and pointed this out to everyone double down his purchase after GME exploded the first time.
Meaning the whole reason this started, from the guy who started it, hasn't happened. And he still seems to believe it will.
Regardless of what the company does. That guy was right the first time and I don't think it was sheer dumb luck.
Cult.
Sure I'll put my cult hat ontop of my tinfoil one.
Ryan Cohen is a capitalist with his own self interest. He has it out for Amazon and believes they're owning a massive section of business and doing it poorly so it's silly nobody is taking their lunch over and over again. He did it once with chewy, kind of. He had to build that one from the ground up but it's okay.
He sees GameStop and eBay as powerful names that he's gonna try to steal the online gaming market obviously. But he notices the economy is getting bad, new consoles aren't likely, people probably won't be building as many PCs in the next few years. It'll likely be a lot of second hand trading, he wants to create that space and really hammer on the trade in vibe GameStop had for a while. I think he's going to abandon the brick and mortar stores as they are and become more hobby shop/pick up your online purchase here.
It's a pretty good idea, the line goes up, he has a history of exactly that plan and he's built a fake internet personality to develop a fanboy cult essentially.
I think if this eBay thing happens things will probably be even more green.
Better be sure the check clears.
I'm a gamestop investor and I'm really unhappy with the plan. Gamestop currently has little debt and 8 billion cash on hand. More cash than they have debt, and I have to admit ryan cohen did turn the company around. He did a good job taking Gamestop from a position where they were losing money every quarter to a position where they have profits every quarter.
But this plan is unhinged. It would make the company take on 20 billion debt, and dilute the stock from 448 million to 2.5 billion shares. Currently retail investors own 60% of the company - the only publicly traded company I know of that is majority owned by little people. We would be disenfranchised and retail would only own around 12% to 15% of the company after the dilution and the "big three" Blackrock, Vanguard, and State Street would likely become the majority owners. Because of the dilution our ability to earn ROI would be severely diminished.
In a hypothetical that Gamestop becomes wildly successful and reaches a 100 billion market cap, with the current float of 448 million shares the share price would be 223 dollars per share. If the float were 2.5 billion, then the share price would be 40 dollars per share. 40 dollars per share is lower than a potential entry point for retail investors who bought in back during january 2021. The difference between those two prices is the profit stolen from us, to give it to the big three.
The Gamestop reddits have turned into echo chambers run by delusional sycophants. They ban anyone criticizing the plan. Gamestop can't issue the 2.5 billion shares without a shareholder vote, and I will definitely be voting against it. I also wrote a letter to the board explaining why this is a bad plan and offering alternatives.
I feel completely, totally betrayed. Cohen posted on X about the "hollow men of the boardroom" not too long ago, about executives whose interests aren't aligned with investors. Then he rolls out a plan that would throw retail traders under the bus to fuel his own greed.
The fact that so many people seem to support the dilution is revealing at the sheer stupidity of the masses when it comes to economics. I compare it to the bizarre tolerance that people have towards inflation. The fed can't meet their 2% inflation target anymore and it's been sky high for years. I hear a little grumbling about grocery store prices but I don't see any organized movement to address wage stagnation. The minimum wage has been stagnant since 2009. It was long overdue to be raised even before COVID and the hyperinflation hit. When inflation increases and your wages don't, you are being robbed. It's the same as if someone held a gun to your head and took money out of your wallet. You lose spending power. But when wages are stagnant and inflation is sky high, the thief is invisible, so people act like NPC's in an Elder Scrolls game and go on with their lives when they should be getting angry and rebelling against the government.
Same thing here. Dilution is theft from shareholders. It should not be tolerated.