GameStop: More than a Meme Stock (Cash-Rich)

Zacks11-15

GameStop: The Rise of the Retail Investor Legendary early 20th-century investor Jesse Livermore once remarked: “There is nothing new in Wall Street. There can’t be because speculation is as old as the...

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There can’t be because speculation is as old as the...</p>\n\n<a href=\"https://finance.yahoo.com/news/gamestop-more-meme-stock-cash-165400079.html\">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":"BK4562","symbol_name":"SPAC上市公司","start_time":0,"source_url":"https://finance.yahoo.com/news/gamestop-more-meme-stock-cash-165400079.html","article_id":"2483033872","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/lq1fZJcjb4laS08q7AgfNw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/c2a82bfa6f130ce1338558c4c7c8f631"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483033872","pubTimestamp":1731603240,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Legendary early 20th-century investor Jesse Livermore once remarked:. “There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”Though I largely agree with Livermore from a market psychology perspective, what occurred in 2020 with the meme stock craze was genuinely unique. The COVID-19 pandemic and “stay at home” policies sparked a new generation of retail investors. These retail investors took to message boards on Reddit  to coalesce and orchestrate one of the largest short squeezes of all time in beaten-down video game retailer GameStop .Want the latest recommendations from Zacks Investment Research?Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4562":"SPAC上市公司","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4077":"互动媒体与服务","BK4588":"碎股","BK4577":"网络游戏","AMC":"AMC院线","BK4564":"太空概念","BK4187":"航天航空与国防","BK4076":"电脑与电子产品零售","RDDT":"Reddit","GME":"游戏驿站","SPCE":"维珍银河","BK4108":"电影和娱乐"},"translate_title":"游戏驿站：不仅仅是一只模因股票（现金充裕）","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMC":1,"GME":1,"RDDT":1,"SPCE":1},"content_text":"GameStop: The Rise of the Retail Investor\nLegendary early 20th-century investor Jesse Livermore once remarked:\n“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”\nThough I largely agree with Livermore from a market psychology perspective, what occurred in 2020 with the meme stock craze was genuinely unique. The COVID-19 pandemic and “stay at home” policies sparked a new generation of retail investors. These retail investors took to message boards on Reddit (RDDT) to coalesce and orchestrate one of the largest short squeezes of all time in beaten-down video game retailer GameStop (GME). \nParlaying Meme Status into a Massive Cash Hoard\nDespite deteriorating fundamentals in the underlying company, retail investors that piled into the stock forced large, intuitional, fundamental-focused investors to cover their shares. Meanwhile, retail investors continued to pile into GME and other meme stocks like AMC (AMC) and Virgin Galactic (SPCE) with their fresh stimulus checks. Eventually, shares tumbled from a high of $121 in 2021 to ~$10. Usually, the story of a “pump and dump” would end there. However, what is different about this story is that GME management was wise enough to conduct multiple stock offerings at nosebleed prices. Meanwhile, another short-squeeze in 2024 would allow management to unload shares at high prices again. Thanks to GME management’s savvy decision making, the company enjoys a balance sheet that boasts more than $4 billion in cash.\nImage Source: Zacks Investment Research\nWith its new cash stack, GME can leverage it into real-world improvements in the business and pay off debt, make strategic investments, or acquire new businesses.\nShort Interest and Technical View\nRoughly 9% of GME shares are sold short. Meanwhile, the stock is breaking out of a monthly bull flag pattern. The combination of a large cash hoard, technical breakout, and high-short interest is a recipe for a run into year-end.\nImage Source: TradingView\nEarnings are a Catalyst\nGameStop will report earnings on December 4th. Last quarter, the company swung to profitability, and over the past four quarters, GME has delivered an average surprise of 67% above Zacks Consensus Estimates.\nImage Source: Zacks Investment Research\nWhile a return to profitability is bullish, GME earnings themselves are unlikely to boost the stock. That said, what management says in the conference call about its massive cash hoard is likely to move shares and may end up being a significant catalyst to spark a short squeeze.\nBottom Line\nThe meme craze sent GameStop soaring. While shares have come down, management parlayed the hype and built a cash-rich balance sheet that can be leveraged moving forward.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nGameStop Corp. (GME) : Free Stock Analysis Report\nAMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report\nVirgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report\nReddit Inc. (RDDT) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"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/2483033872"}