Here's A Crucial Metric That GameStop Stock Investors Should Look At

TheStreet2022-06-22

They say that “cash is king”. GameStop's free cash flow is a key metric that speaks to the company's long-term success.Business fundamentals are not necessarily at the core of retail investors' thesis...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Prost
2022-06-22
Prost
Good
michaelchan8
2022-06-22
michaelchan8
Fud article. GME spent to invest in the NFT marketplace which is going to generate cash for them in the long term. Investor just need to know as long as GME does not go bankrupt, moass is still on.
jayjong
2022-06-22
jayjong
Tons of dd at drsgme.org and r/superstonk
Rocky1985
2022-06-22
Rocky1985
Gg

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1186364211?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-06-22 17:06","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1186364211","market":"us","top_or_hot":-1,"title":"Here's A Crucial Metric That GameStop Stock Investors Should Look At","media":"TheStreet","content":"<div>\n<p>They say that “cash is king”. GameStop's free cash flow is a key metric that speaks to the company's long-term success.Business fundamentals are not necessarily at the core of retail investors' thesis...</p>\n\n<a href=\"https://www.thestreet.com/memestocks/gme/heres-a-crucial-metric-that-gamestop-stock-investors-should-look-at\">Source Link</a>\n\n</div>\n","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Here's A Crucial Metric That GameStop Stock Investors Should Look At</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHere's A Crucial Metric That GameStop Stock Investors Should Look At\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-06-22 17:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.thestreet.com/memestocks/gme/heres-a-crucial-metric-that-gamestop-stock-investors-should-look-at><strong>TheStreet</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>They say that “cash is king”. GameStop's free cash flow is a key metric that speaks to the company's long-term success.Business fundamentals are not necessarily at the core of retail investors' thesis...</p>\n\n<a href=\"https://www.thestreet.com/memestocks/gme/heres-a-crucial-metric-that-gamestop-stock-investors-should-look-at\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GME","symbol_name":"游戏驿站","start_time":0,"source_url":"https://www.thestreet.com/memestocks/gme/heres-a-crucial-metric-that-gamestop-stock-investors-should-look-at","article_id":"1186364211","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1186364211","pubTimestamp":1655888816,"sourceInfo":null,"weMediaInfo":null,"summary":"They say that “cash is king”. GameStop's free cash flow is a key metric that speaks to the company's","collect":0,"end_time":0,"defaultTopTitle":"thestreet.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"GME":"游戏驿站"},"translate_title":"以下是游戏驿站股票投资者应该考虑的一个关键指标","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GME":0.9},"content_text":"They say that “cash is king”. GameStop's free cash flow is a key metric that speaks to the company's long-term success.Business fundamentals are not necessarily at the core of retail investors' thesis for investing in GameStop stock. Rather, beating short-sellers at their own game seems to be a key factor — part of why GME is considered a meme stock.However, when considering a long-term investment in any stock, fundamentals should matter. Here is why GameStop investors might want to think about cash and cash flow as key metrics to track.Figure 1: Here's A Crucial Metric That GameStop Stock Investors Should Look At‘Cash Is King’In fundamental analysis, free cash flow (FCF) is potentially the most important metric that should be scrutinized when analyzing a company.It is through cash flow that a company can finance growth and cash returns to shareholders, whether through dividends or share buybacks. A strong cash pipeline also allows for acquisitions that fuel inorganic growth, and improves the balance sheet by reducing debt.To many, cash is a matter of ultimate success or failure. Growth companies and their stocks can “reach escape velocity” when they become profitable and cash flow-positive, allowing them to thrive without the need for further debt or equity investments.GME's Free Cash Flow Per ShareGameStop director and company board member Larry Cheng recently tweeted that free cash flow (FCF) is more important than earnings before interest, taxes, depreciation, and amortization (EBITDA).In the tweet, Cheng brought up a statement from Amazon to its shareholders indicating that free cash flow per share is the most important metric to watch.EBITDA, a non-GAAP metric associated with the income statement, has some shortcomings in determining the financial health of a company. Most importantly, it does not provide visibility into a company’s liquidity and balance sheet robustness, as accrual accounting can cloud the company’s ability to produce cold, hard cash.Currently, GameStop has a total cash position of over $1 billion, which is a considerable amount compared to the worst of the COVID-19 crisis (see below). GameStop has been able to protect its cash balance by issuing a whopping $1.67 billion in equity last year.But cash raised through share issuance is quite different from cash produced by operations. Data from the end of April 2022 shows that FCF per share has been negative $10.47, the lowest since 2010.GameStop has been using $300 million in cash to support operations each quarter. If not addressed, this could put the company’s balance sheet in a delicate position. At the current spending pace, and all else held equal, GameStop could run out of cash next year.GameStop's Cash Flow SituationLarry Cheng's tweet suggests that GameStop's management team understands that free cash flow is a priority. For now, however, the company is looking to stay afloat through further equity financing.Recently, during GameStop's annual shareholder's meeting, an increase of 8 million shares was approved as part of the 2022 Incentive Plan. GameStop's management had already communicated that since last year they would issue more equity strategically. This could be part of a turnaround plan for the company's balance sheet if it is able to sell shares at a high price, as it did in 2021.Clearly, there is work to be done. GameStop's most recent quarterly results were short of impressive. The better news is that many of the company’s difficulties in producing operating cash flow seem related to supply chain disruptions, an external issue that could improve and at least stabilize the cash burn later this year or in 2023.In our opinion, shareholders should be always looking for clarity from the management team on how GameStop can make quick progress on cash flow.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9043145554,"gmtCreate":1655897020478,"gmtModify":1676535727589,"author":{"id":"4092017231447120","authorId":"4092017231447120","name":"Prost","avatar":"https://static.tigerbbs.com/760e717500245db2556abaaa40c1f81b","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"4092017231447120","authorIdStr":"4092017231447120"},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9043145554","repostId":1186364211,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9043123177,"gmtCreate":1655891966899,"gmtModify":1676535726909,"author":{"id":"3585361413732704","authorId":"3585361413732704","name":"michaelchan8","avatar":"https://community-static.tradeup.com/news/6fc3165fdf6e1ba1ae2afd05cb876b1d","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":4,"crmLevelSwitch":0,"idStr":"3585361413732704","authorIdStr":"3585361413732704"},"htmlText":"Fud article. GME spent to invest in the NFT marketplace which is going to generate cash for them in the long term. Investor just need to know as long as GME does not go bankrupt, moass is still on.","listText":"Fud article. GME spent to invest in the NFT marketplace which is going to generate cash for them in the long term. Investor just need to know as long as GME does not go bankrupt, moass is still on.","text":"Fud article. GME spent to invest in the NFT marketplace which is going to generate cash for them in the long term. Investor just need to know as long as GME does not go bankrupt, moass is still on.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9043123177","repostId":1186364211,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9043129366,"gmtCreate":1655891635455,"gmtModify":1676535726850,"author":{"id":"3572242811173585","authorId":"3572242811173585","name":"jayjong","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3572242811173585","authorIdStr":"3572242811173585"},"htmlText":"Tons of dd at&nbsp;drsgme.org and r/superstonk","listText":"Tons of dd at&nbsp;drsgme.org and r/superstonk","text":"Tons of dd at drsgme.org and r/superstonk","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9043129366","repostId":1186364211,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9043168289,"gmtCreate":1655890220841,"gmtModify":1676535726690,"author":{"id":"3555584681969364","authorId":"3555584681969364","name":"Rocky1985","avatar":"https://community-static.tradeup.com/news/d360434d15f0929ccd76905e2f1f8604","vip":1,"crmLevel":4,"crmLevelSwitch":1,"idStr":"3555584681969364","authorIdStr":"3555584681969364"},"htmlText":"Gg","listText":"Gg","text":"Gg","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9043168289","repostId":1186364211,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":38,"commentSize":4,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1186364211"}