Recall that the first quarter after the whole WSB thing, they had something like 2 billion in cash from that whole thing.
A year later, they had 1 billion.
Half a year later, 500 million.
All of a sudden this quarter, after shutting down stores all over the place and gutting their staff, they’re claiming 4 billion cash on hand, helped out by unproven social media claims growing their stock price 30%.
doubt. Their business model relies on physical games being sold multiple times, once when new, and then multiple times as used copies. This is why they’re focusing on retro consoles. New consoles have passable online marketplaces, so Gamestop cannot compete, and are completely inferior to PC gaming, which hasn’t needed Gamestop in 20 years.
That would be a valid assessment if the stock price had jumped after the quarterly earnings.
Their stock price jumped before the quarterly earnings was announced. It has nothing to do with it, nor any of their fundamentals
Also notice:
Cash flow is neutral or negative and has been for a while now.
Revenue peaked in 2018 is now less than 62% of that peak. Revenue per quarter is also down 11% year over year.
Because the share price jumped up so much last year to give them that cash on hand.
Also the $34 million loss is their best result since feb 2018, most of their losses have been 10x higher. Although it does look like a long term trend into the positive cash flow. Also the CEO is mentioning a stock dividend now, so that takes care of the cash on hand.
Theyre also going against small gaming hobby stores which while not everywhere they can offer secondary services not reliant on reselling games multiple times. Such as offering LAN parties for old games, table top games, or even movie nights. These are just things I know the shop one of my kin in Arkansas goes to does.
The company as a whole is profitable with not a dollar of debt, where is this staggering hemmorage?
Recall that the first quarter after the whole WSB thing, they had something like 2 billion in cash from that whole thing.
A year later, they had 1 billion.
Half a year later, 500 million.
All of a sudden this quarter, after shutting down stores all over the place and gutting their staff, they’re claiming 4 billion cash on hand, helped out by unproven social media claims growing their stock price 30%.
doubt. Their business model relies on physical games being sold multiple times, once when new, and then multiple times as used copies. This is why they’re focusing on retro consoles. New consoles have passable online marketplaces, so Gamestop cannot compete, and are completely inferior to PC gaming, which hasn’t needed Gamestop in 20 years.
What do you mean unproven social media claims? the $4 billion in cash is in their quarterly earnings: https://gamestop.gcs-web.com/static-files/2c1eac18-9f79-41b9-9e56-a8db8fe7aac4
Pretty easy to verify yourself.
That would be a valid assessment if the stock price had jumped after the quarterly earnings.
Their stock price jumped before the quarterly earnings was announced. It has nothing to do with it, nor any of their fundamentals
Also notice:
Cash flow is neutral or negative and has been for a while now. Revenue peaked in 2018 is now less than 62% of that peak. Revenue per quarter is also down 11% year over year.
Company lost 34 million dollars last quarter, and has not had a positive operating income since feb 2018. https://www.msn.com/en-ca/money/watchlist?tab=Related&id=a1tyxm&duration=1Y&src=b_fingraph&relatedQuoteId=a1tyxm&relatedSource=MlAl&l3=L3_Financials
Even if they continue loosing $34-million each quarter, it will take over 33 years to go bankrupt with the current $4.6-billion cash on hand.
Seriously though, I see that earnings per share was positive for 2024. How is that possible if revenue has been negative since 2018?
Because the share price jumped up so much last year to give them that cash on hand.
Also the $34 million loss is their best result since feb 2018, most of their losses have been 10x higher. Although it does look like a long term trend into the positive cash flow. Also the CEO is mentioning a stock dividend now, so that takes care of the cash on hand.
If that’s a lie then they will get absolutely wrecked by the authorities since they’re a publicly traded company.
Yeah, about the ”authorities”….
Over 4 billion cash is shown on the balance sheets on their latest filings too
Theyre also going against small gaming hobby stores which while not everywhere they can offer secondary services not reliant on reselling games multiple times. Such as offering LAN parties for old games, table top games, or even movie nights. These are just things I know the shop one of my kin in Arkansas goes to does.
My local stores sell steam games and PC parts, I don’t think you understand the business model… When was the last time you visited a store?
Not to mention now they’re doing pokemon tcg, that just prints money.
Oh yeah the trading card business too, plus all the homewares now. Currently eating dumplings out of a pokemon licenced bowl manufactured by gamestop