GameStop’s stock price is down 50% from the highs — and it’s still crazy

MarketWatch2021-04-14

Try justifying GameStop’s valuation AFP VIA GETTY IMAGES GameStop was not worth owning anywhere above $45 a share, given the company’s fundamentals, as explained when we closed our Focus List: Long ...

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Comments

kccc8
2021-04-14
kccc8
To the moon
iamnickname
2021-04-14
iamnickname
LOL this stock has nothing to do with fundamentals anymore it is all about the math DYDD guys don’t believe what you see on the news.
Natdogg
2021-04-14
Natdogg
Shill!
KickAss1337
2021-04-14
KickAss1337
No, your mom is crazy
JerSoh
2021-04-14
JerSoh
Hmm
- RayvchelReplyJerSoh:
  oh no no no no no
- Rayvchel:
  oh no
- JerSoh:
  oh yes
cozyli
2021-04-14
cozyli
Too crazy
- nxw:
  Good

Leave a comment

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}\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\">\nGameStop’s stock price is down 50% from the highs — and it’s still crazy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-14 10:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/gamestops-stock-price-is-down-50-from-the-highs-and-its-still-crazy-11618353535?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Try justifying GameStop’s valuation\nAFP VIA GETTY IMAGES\nGameStop was not worth owning anywhere above $45 a share, given the company’s fundamentals, as explained when we closed our Focus List: Long ...</p>\n\n<a href=\"https://www.marketwatch.com/story/gamestops-stock-price-is-down-50-from-the-highs-and-its-still-crazy-11618353535?mod=home-page\">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.marketwatch.com/story/gamestops-stock-price-is-down-50-from-the-highs-and-its-still-crazy-11618353535?mod=home-page","article_id":"1190580837","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1190580837","pubTimestamp":1618369183,"sourceInfo":{"source_id":"lsy1603348471595","name":"MarketWatch"},"weMediaInfo":null,"summary":"Try justifying GameStop’s valuation\nAFP VIA GETTY IMAGES\nGameStop was not worth owning anywhere abov","collect":0,"end_time":0,"defaultTopTitle":"marketwatch.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"GME":"游戏驿站"},"translate_title":"游戏驿站的股价已经从最高点下跌了50%--而且它仍然是疯狂的","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GME":0.9},"content_text":"Try justifying GameStop’s valuation\nAFP VIA GETTY IMAGES\nGameStop was not worth owning anywhere above $45 a share, given the company’s fundamentals, as explained when we closed our Focus List: Long positionin the stock in late January.\nNevertheless, the stock went on to climb as high as $347, even higher intraday, before taking a roller coaster path back to around $185.\nSOURCES: NEW CONSTRUCTS LLC AND COMPANY FILINGS\nTo give readers a sense of just how crazy overvalued the stock was at its peak, we do the math and show how the business would have to perform to justify a share price of $347.\nundefined Crazy” at $347 explained: It implies more revenue than Macy’s\nTo justify $347 a share, our reverse discounted cash flow (DCF) model shows that GameStop must:\n\nimprove its profit margin to 5.5% (10-year average from 2010-19 is 3.9% and the all-time high was 4.8% in 2008) and\n\n\ngrow revenue by 17% compounded annually through 2030 (above the projected video game industry CAGR of 13% through 2027)\n\nIn this scenario, GameStop earns nearly $21 billion in revenue in 2030 or more than the trailing-12-months (TTM) revenue of Macy’s,AutoZone and Chewy.\nGameStop’s historical revenue vs. DCF implied revenue: Scenario 1\nSOURCES: NEW CONSTRUCTS LLC AND COMPANY FILINGS\nFor reference, GameStop’s revenue fell by 3% compounded annually from 2009 to 2019.\nStill Crazy at $185\nFor perspective on the current price, we run the same analysis to show what the company must do to justify $185 a share:\n\nimmediately improve its profit margin to 4.8% (all-time high in 2008 compared with 0.7% in 2019) and\ngrow revenue by 15% compounded annually through 2027 (above projected videogame industry CAGR of 13% through 2027)\n\nIn this scenario, GameStop earns over $11 billion in revenue in 2027, which is 19% higher than GameStop’s record revenue of $9.6 billion in 2012 and the TTM revenue of Nordstrom,Advance Auto Parts and Chewy.\nGameStop’s historical revenue vs. DCF implied revenue: Scenario 2\nSOURCES: NEW CONSTRUCTS LLC AND COMPANY FILINGS\nSure, stock prices can be irrational\nWe are not saying that fundamentals should be 100% of your investing process. We only aim to add insight into the fundamental risk of owning stocks at different prices.\nWe’re not saying that you will not make lots of money trading stocks. You might. Our aim is to provide some fundamental perspective to inform and complement other investment strategies.  In other words, if you have 10 great technical ideas, you might like to overweight those with the best fundamentals and underweight those with weaker fundamentals.\nWith a better grasp on fundamentals, investors have a better sense of when to buy and sell – and – know how much risk they take when they own a stock at certain levels.","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":344505449,"gmtCreate":1618413214181,"gmtModify":1704710526612,"author":{"id":"3577335936503686","authorId":"3577335936503686","name":"kccc8","avatar":"https://static.tigerbbs.com/300c0d9f4211fb2d763b4180b5673374","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3577335936503686","authorIdStr":"3577335936503686"},"htmlText":"To the moon","listText":"To the moon","text":"To the moon","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344505449","repostId":1190580837,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":344506104,"gmtCreate":1618413092008,"gmtModify":1704710523824,"author":{"id":"3561453607729762","authorId":"3561453607729762","name":"iamnickname","avatar":"https://static.tigerbbs.com/8427d076988e90450fddb882a08fbbe5","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3561453607729762","authorIdStr":"3561453607729762"},"htmlText":"LOL this stock has nothing to do with fundamentals anymore it is all about the math DYDD guys don’t believe what you see on the news.&nbsp;","listText":"LOL this stock has nothing to do with fundamentals anymore it is all about the math DYDD guys don’t believe what you see on the news.&nbsp;","text":"LOL this stock has nothing to do with fundamentals anymore it is all about the math DYDD guys don’t believe what you see on the news.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344506104","repostId":1190580837,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":344625572,"gmtCreate":1618407575596,"gmtModify":1704710334329,"author":{"id":"3576900640569312","authorId":"3576900640569312","name":"Natdogg","avatar":"https://static.tigerbbs.com/da0b05f069448ce72cb32e09b0302ac4","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3576900640569312","authorIdStr":"3576900640569312"},"htmlText":"Shill!","listText":"Shill!","text":"Shill!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344625572","repostId":1190580837,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":344110649,"gmtCreate":1618386465681,"gmtModify":1704709995036,"author":{"id":"3575093896980745","authorId":"3575093896980745","name":"KickAss1337","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3575093896980745","authorIdStr":"3575093896980745"},"htmlText":"No, your mom is crazy","listText":"No, your mom is crazy","text":"No, your mom is 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no no no no no","text":"oh no no no no no","html":"oh no no no no no"},{"id":4033094,"gmtCreate":1618394416548,"gmtModify":1680784019784,"authorId":3576989268942137,"author":{"id":3576989268942137,"idStr":"3576989268942137","authorId":3576989268942137,"name":"Rayvchel","avatar":"https://static.tigerbbs.com/a1de9c3b24db1158b034e7542e071cd6","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":344370922,"type":1,"supId":0,"prevId":0,"content":"oh no","text":"oh no","html":"oh no"},{"id":4033146,"gmtCreate":1618395076155,"gmtModify":1680784016503,"authorId":3577932407820428,"author":{"id":3577932407820428,"idStr":"3577932407820428","authorId":3577932407820428,"name":"JerSoh","avatar":"https://static.tigerbbs.com/08e7c61cf4399a652433680f45aadee4","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":344370922,"type":1,"supId":4033094,"prevId":0,"content":"oh yes","text":"oh yes","html":"oh 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