- cross-posted to:
- gaming@beehaw.org
- cross-posted to:
- gaming@beehaw.org
- GameStop is hoping somebody will buy its Canadian and French operations.
- This amounts to over 500 physical stores across both nations.
- The company’s CEO decried “Liberalism, Socialism, Progressivism, Wokeness and DEI” within his firm while shopping for a buyer.
While it was fun to watch the GME stock shitshow, the fact remains that the short selling hedge funds were right: GameStop doesn’t have a good business case anymore.
GME should have died years ago and this is just the people who are currently holding the bag trying to scrape some value off the bottom of the barrel.
Not going to lie, the GME Meltdown or whatever it was called sub on reddit gave me a lot of entertainment a few years ago, especially with the whole Bed Bath & Beyond saga and how the BBBY bag holders thought Ryan Cohen was going to save them too somehow.
Yeah, they should’ve transitioned to a very different business model a decade ago. Ideas:
I find myself only going to Gamestop occasionally to see if they have something I want for a decent price, and honestly, I’ve stopped bothering because selection is mediocre compared to online options, and the prices aren’t any better.
Disagree with that. The company is dumb and Cohen failed in trying to make something out of it don’t really care about that but I do have GameStop stock from the GME shitshow and there’s no bags anywhere at least for most of us.
If the stock split never happened the stock would be worth $100 a share right now. Obviously something is wrong with that value estimation because it’s definitely not worth that much.
I really just threw in my covid check but what really made me think it’s still worth is the original guy who saw value when the stock was worth less than $7 doubled his position and still to this day is holding on. He knows more than me and he saw this happening and probably sees something else too that I don’t understand so whatever I’m still holding a good amount of GME.
But if you step back and see the forest for the trees, what place do they have in this economy when most new games are digital purchases and trend more and more toward that with each day? They aren’t selling retro game and only deal with current stuff and their prices are insanely high compared to the digital storefronts. The chotchkis alone (Funko pops and TShirts) aren’t enough to sustain all the overhead for a company this large. They’ve tried to branch out into PC gaming accessories but who’s going to go there versus online?
But that’s not what we’re talking about. GameStop’s success has nothing to do with what I’m waiting for. The stock isn’t up because GameStop is a good company. In fact the opposite
Watch the Big Short easiest way to really explain. The stock was worth $7 then $400 then stock split. If the split never happened the stock would be worth $100 and that isn’t because of the fundamental regular stock reasons it’s because the dying company didn’t die and now their valuation is fucked up.
But at the end of the day, tricks and manipulation can only get you so far. When quarterly filings show poor performance and stores start shutting down, I don’t see how they (and by extension their share price) could possibly recover or increase. The issues they face aren’t some temporary storm they have to weather, it’s a permanent change in consumer’s buying habits and the market as a whole. Even outside of retail sales, the entire gaming industry has been in shambles for several years now with no change in sight.
Again I 100% agree however…
The dude who saw it at $7 and said it was gonna pop, doubled down after $400 and still believes it’ll pop again.
He knew the first time, he’s smarter than me, he didn’t sell. I am still in the green by like more than double where I was at the start. I’m gonna continue with my gut and believe this dude knows something I don’t because so far he hasn’t made me think otherwise.
Everything else literally anything else besides what I said in this post is noise to me you know?