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06-07

Shorts never closed.

GameStop Posts Decline in Quarterly Sales, Reveals Plan to Sell More Stock

06-07

Investigate jim crammer for manipulation, shorts never closed

Keith Gill's GameStop Trades Pose Conundrum for Market Cops

06-06

This play is not about business fundamentals although company has minimal debt, was profitable last quarter, has 2bn in cash as Victor said shorts never closed.... boom

GameStop Shares Resume Rally, Seal Highest Close in 3 Weeks

06-01

I agree with Victor, shorts never closed.

GameStop Stock: No Fundamentals Behind The Recent Rally

05-14

as Victor said shorts never closed... boom

04-29

As Victor said shorts never closed.... boom

GameStop: Approaching An Optimistic Fair Value But Not There Yet

2023-09-01

I like the stock

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Go to Tiger App to see more news

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GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier.The shares jumped 25% in premarket trading.","content":"<html><head></head><body><p>【<a href=\"https://ttm.financial/RN?name=RNLive&amp;rndata=%7B%22liveId%22:%221801129300007002%22,%22type%22:1%7D\" title=\"Click here to tune into &#34;Roaring Kitty&#34; live broadcast\" target=\"_blank\" class=\"\">Click here to tune into &#34;Roaring Kitty&#34; live broadcast</a> 】</p><p>June 7 (Reuters) - GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.</p><p>The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier. 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The shares tumbled 16% in premarket trading, erasing earlier gains.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/50a8f63752a3bc003ae6396a55a273b9\" title=\"\" tg-width=\"863\" tg-height=\"628\"/></p><p></p></body></html>","collect":0,"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>GameStop Posts Decline in Quarterly Sales, Reveals Plan to Sell More Stock</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\">\nGameStop Posts Decline in Quarterly Sales, Reveals Plan to Sell More Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2024-06-07 18:47</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>【<a href=\"https://ttm.financial/RN?name=RNLive&amp;rndata=%7B%22liveId%22:%221801129300007002%22,%22type%22:1%7D\" title=\"Click here to tune into &#34;Roaring Kitty&#34; live broadcast\" target=\"_blank\" class=\"\">Click here to tune into &#34;Roaring Kitty&#34; live broadcast</a> 】</p><p>June 7 (Reuters) - GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.</p><p>The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier. The sales decline was steeper than the two Wall Street analysts that cover the stock expected. Their estimates were in a range of $900 million to $1.09 billion per FactSet.</p><p>GameStop lost $32.3 million during the quarter, a narrower loss than the $50.5 million suffered in the year-earlier period.</p><p>The company also gave an update on its ongoing stock sales, saying it would sell an additional 30 million shares on top of the 45 million it had already sold.</p><p>The first quarter results came as a surprise. The company, which will be the subject of a YouTube livestream by meme trader &#34;Roaring Kitty&#34; later Friday, was supposed to release results next week. The shares tumbled 16% in premarket trading, erasing earlier gains.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/50a8f63752a3bc003ae6396a55a273b9\" title=\"\" tg-width=\"863\" tg-height=\"628\"/></p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站"},"source_url":"https://api.rkd.refinitiv.com/api/News/News.svc/REST/News_1/RetrieveStoryML_1","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2441053270","content_text":"【Click here to tune into \"Roaring Kitty\" live broadcast 】June 7 (Reuters) - GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier. The sales decline was steeper than the two Wall Street analysts that cover the stock expected. Their estimates were in a range of $900 million to $1.09 billion per FactSet.GameStop lost $32.3 million during the quarter, a narrower loss than the $50.5 million suffered in the year-earlier period.The company also gave an update on its ongoing stock sales, saying it would sell an additional 30 million shares on top of the 45 million it had already sold.The first quarter results came as a surprise. The company, which will be the subject of a YouTube livestream by meme trader \"Roaring Kitty\" later Friday, was supposed to release results next week. The shares tumbled 16% in premarket trading, erasing earlier gains.","news_type":1},"isVote":1,"tweetType":1,"viewCount":44,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4093561479903300","authorId":"4093561479903300","name":"SPACE ROCKET","avatar":"https://static.tigerbbs.com/7dceae168a13267cc21f2576321e67f8","crmLevel":9,"crmLevelSwitch":1},"content":"Shorts will short it back to $20. GME will come back down to earth.","text":"Shorts will short it back to $20. GME will come back down to earth.","html":"Shorts will short it back to $20. GME will come back down to earth."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":314078630662200,"gmtCreate":1717699827524,"gmtModify":1717699831425,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Investigate jim crammer for manipulation,&nbsp; shorts never closed","listText":"Investigate jim crammer for manipulation,&nbsp; shorts never closed","text":"Investigate jim crammer for manipulation, shorts never closed","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/314078630662200","repostId":"2441262795","repostType":2,"repost":{"id":"2441262795","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1717684720,"share":"https://www.laohu8.com/m/news/2441262795?lang=&edition=full","pubTime":"2024-06-06 22:38","market":"hk","language":"en","title":"Keith Gill's GameStop Trades Pose Conundrum for Market Cops","url":"https://stock-news.laohu8.com/highlight/detail?id=2441262795","media":"Dow Jones","summary":"Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill's tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his Reddit account on Monday afternoon.Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based in","content":"<html><head></head><body><p>Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?</p><p>Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.</p><p>For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill&#39;s tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> account on Monday afternoon.</p><p>&#34;What he&#39;s doing is exploiting a gap in the rules,&#34; said Daniel Hawke, a partner at the law firm Arnold &amp; Porter Kaye Scholer and former head of the SEC&#39;s market-abuse unit. &#34;He is using his celebrity and influence to draw people to buy the stock. The rules that exist do not permit the SEC to prosecute that conduct unless there is an element of deception.&#34;</p><p>The Wall Street Journal reported this week that Gill purchased a large number of GameStop call options before reappearing May 12 on social media. Such options provide the right to buy a stock at a specified price, and bullish investors can use them to place big leveraged bets.</p><p>Gill&#39;s trades and tweets prompted discussions at E*Trade, his brokerage platform, and its parent company, Morgan Stanley, over whether he should be booted off the platform over potentially manipulative trades, the Journal reported.</p><p>GameStop shares are up 81% since Gill returned to X, formerly known as Twitter, with an image of a man leaning forward in a chair. It was his first tweet after a nearly three-year hiatus. More tweets followed, featuring clips from movies and TV shows such as &#34;Seinfeld,&#34; self-referential memes, images of cats, and the occasional GameStop logo layered onto the videos.</p><p>It is a testament to Gill&#39;s fame that such posts nonetheless ignited a rally. During the original meme-stock mania in January 2021, the headband-wearing Gill became an internet celebrity by posting videos on why he felt that GameStop -- a beaten-down, bricks-and-mortar retailer of videogames -- was undervalued. A movement of investors emerged in his wake, seeing Gill as its perceived champion against short-selling hedge-fund managers who bet against GameStop and other stocks. Gill later testified before Congress and became the hero of the 2023 Sony Pictures film &#34; Dumb Money.&#34;</p><p>A lawyer who previously represented Gill declined to comment, and Gill didn&#39;t respond to messages.</p><p>Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based investment-advisory firm that is now defunct, regulatory filings show.</p><p>The SEC has a history of successfully prosecuting fraud cases in pump-and-dump schemes, in which the masterminds of the scheme promote a stock online -- often with false claims -- while quietly selling the stock as soon as it rallies. Gill&#39;s recent actions don&#39;t fall into that framework. None of his posts have been explicit endorsements of investing in GameStop or claims about the company&#39;s financial prospects. It is unclear whether Gill has sold his shares, or whether he is still amassing a giant GameStop stake.</p><p>Gill&#39;s actions don&#39;t appear to be insider trading, either, since he isn&#39;t a GameStop executive with special knowledge of the company&#39;s business.</p><p>Still, for some market observers, Gill&#39;s actions are blatantly abusive.</p><p>&#34;This is obviously market manipulation. I can&#39;t believe we&#39;re even having this conversation,&#34; said Matt Stoller, director of research at the American Economic Liberties Project. &#34;If market-manipulation law doesn&#39;t handle this, then what&#39;s it for?&#34;</p><p>Other market veterans say Gill isn&#39;t doing anything wildly different from a Wall Street fund manager who holds a stock and discusses it on television. Steve Sosnick, chief strategist at Interactive Brokers, compared Gill&#39;s actions to an activist investor who quietly amasses a stake in a company, then reveals it publicly in hopes that the activist&#39;s entry into the stock will send it higher.</p><p>&#34;He&#39;s hardly the first guy to talk his own book,&#34; Sosnick said.</p><p>There are a number of unanswered questions about Gill&#39;s trading. The short seller Andrew Left, who took out a bearish bet against GameStop in recent days, has speculated that Gill could be backed by other investors, citing the huge size of his position in GameStop shares.</p><p>Former SEC Chair Jay Clayton suggested in an interview with the Journal that Gill should publicly answer questions about his trading. Such questions include: Is he working with anyone else? How did Gill, an individual investor, finance his purchases of GameStop shares? Has he hedged any of his bets on GameStop? And what are his ultimate intentions?</p><p>&#34;Absent answers to these questions,&#34; Clayton said, &#34;I&#39;m very uncomfortable for retail investors and for market integrity.&#34;</p></body></html>","collect":0,"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>Keith Gill's GameStop Trades Pose Conundrum for Market Cops</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\">\nKeith Gill's GameStop Trades Pose Conundrum for Market Cops\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-06-06 22:38</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?</p><p>Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.</p><p>For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill&#39;s tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> account on Monday afternoon.</p><p>&#34;What he&#39;s doing is exploiting a gap in the rules,&#34; said Daniel Hawke, a partner at the law firm Arnold &amp; Porter Kaye Scholer and former head of the SEC&#39;s market-abuse unit. &#34;He is using his celebrity and influence to draw people to buy the stock. The rules that exist do not permit the SEC to prosecute that conduct unless there is an element of deception.&#34;</p><p>The Wall Street Journal reported this week that Gill purchased a large number of GameStop call options before reappearing May 12 on social media. Such options provide the right to buy a stock at a specified price, and bullish investors can use them to place big leveraged bets.</p><p>Gill&#39;s trades and tweets prompted discussions at E*Trade, his brokerage platform, and its parent company, Morgan Stanley, over whether he should be booted off the platform over potentially manipulative trades, the Journal reported.</p><p>GameStop shares are up 81% since Gill returned to X, formerly known as Twitter, with an image of a man leaning forward in a chair. It was his first tweet after a nearly three-year hiatus. More tweets followed, featuring clips from movies and TV shows such as &#34;Seinfeld,&#34; self-referential memes, images of cats, and the occasional GameStop logo layered onto the videos.</p><p>It is a testament to Gill&#39;s fame that such posts nonetheless ignited a rally. During the original meme-stock mania in January 2021, the headband-wearing Gill became an internet celebrity by posting videos on why he felt that GameStop -- a beaten-down, bricks-and-mortar retailer of videogames -- was undervalued. A movement of investors emerged in his wake, seeing Gill as its perceived champion against short-selling hedge-fund managers who bet against GameStop and other stocks. Gill later testified before Congress and became the hero of the 2023 Sony Pictures film &#34; Dumb Money.&#34;</p><p>A lawyer who previously represented Gill declined to comment, and Gill didn&#39;t respond to messages.</p><p>Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based investment-advisory firm that is now defunct, regulatory filings show.</p><p>The SEC has a history of successfully prosecuting fraud cases in pump-and-dump schemes, in which the masterminds of the scheme promote a stock online -- often with false claims -- while quietly selling the stock as soon as it rallies. Gill&#39;s recent actions don&#39;t fall into that framework. None of his posts have been explicit endorsements of investing in GameStop or claims about the company&#39;s financial prospects. It is unclear whether Gill has sold his shares, or whether he is still amassing a giant GameStop stake.</p><p>Gill&#39;s actions don&#39;t appear to be insider trading, either, since he isn&#39;t a GameStop executive with special knowledge of the company&#39;s business.</p><p>Still, for some market observers, Gill&#39;s actions are blatantly abusive.</p><p>&#34;This is obviously market manipulation. I can&#39;t believe we&#39;re even having this conversation,&#34; said Matt Stoller, director of research at the American Economic Liberties Project. &#34;If market-manipulation law doesn&#39;t handle this, then what&#39;s it for?&#34;</p><p>Other market veterans say Gill isn&#39;t doing anything wildly different from a Wall Street fund manager who holds a stock and discusses it on television. Steve Sosnick, chief strategist at Interactive Brokers, compared Gill&#39;s actions to an activist investor who quietly amasses a stake in a company, then reveals it publicly in hopes that the activist&#39;s entry into the stock will send it higher.</p><p>&#34;He&#39;s hardly the first guy to talk his own book,&#34; Sosnick said.</p><p>There are a number of unanswered questions about Gill&#39;s trading. The short seller Andrew Left, who took out a bearish bet against GameStop in recent days, has speculated that Gill could be backed by other investors, citing the huge size of his position in GameStop shares.</p><p>Former SEC Chair Jay Clayton suggested in an interview with the Journal that Gill should publicly answer questions about his trading. Such questions include: Is he working with anyone else? How did Gill, an individual investor, finance his purchases of GameStop shares? Has he hedged any of his bets on GameStop? And what are his ultimate intentions?</p><p>&#34;Absent answers to these questions,&#34; Clayton said, &#34;I&#39;m very uncomfortable for retail investors and for market integrity.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4577":"网络游戏","BK4547":"WSB热门概念","BK4588":"碎股","GME":"游戏驿站","BK4076":"电脑与电子产品零售"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2441262795","content_text":"Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill's tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his Reddit account on Monday afternoon.\"What he's doing is exploiting a gap in the rules,\" said Daniel Hawke, a partner at the law firm Arnold & Porter Kaye Scholer and former head of the SEC's market-abuse unit. \"He is using his celebrity and influence to draw people to buy the stock. The rules that exist do not permit the SEC to prosecute that conduct unless there is an element of deception.\"The Wall Street Journal reported this week that Gill purchased a large number of GameStop call options before reappearing May 12 on social media. Such options provide the right to buy a stock at a specified price, and bullish investors can use them to place big leveraged bets.Gill's trades and tweets prompted discussions at E*Trade, his brokerage platform, and its parent company, Morgan Stanley, over whether he should be booted off the platform over potentially manipulative trades, the Journal reported.GameStop shares are up 81% since Gill returned to X, formerly known as Twitter, with an image of a man leaning forward in a chair. It was his first tweet after a nearly three-year hiatus. More tweets followed, featuring clips from movies and TV shows such as \"Seinfeld,\" self-referential memes, images of cats, and the occasional GameStop logo layered onto the videos.It is a testament to Gill's fame that such posts nonetheless ignited a rally. During the original meme-stock mania in January 2021, the headband-wearing Gill became an internet celebrity by posting videos on why he felt that GameStop -- a beaten-down, bricks-and-mortar retailer of videogames -- was undervalued. A movement of investors emerged in his wake, seeing Gill as its perceived champion against short-selling hedge-fund managers who bet against GameStop and other stocks. Gill later testified before Congress and became the hero of the 2023 Sony Pictures film \" Dumb Money.\"A lawyer who previously represented Gill declined to comment, and Gill didn't respond to messages.Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based investment-advisory firm that is now defunct, regulatory filings show.The SEC has a history of successfully prosecuting fraud cases in pump-and-dump schemes, in which the masterminds of the scheme promote a stock online -- often with false claims -- while quietly selling the stock as soon as it rallies. Gill's recent actions don't fall into that framework. None of his posts have been explicit endorsements of investing in GameStop or claims about the company's financial prospects. It is unclear whether Gill has sold his shares, or whether he is still amassing a giant GameStop stake.Gill's actions don't appear to be insider trading, either, since he isn't a GameStop executive with special knowledge of the company's business.Still, for some market observers, Gill's actions are blatantly abusive.\"This is obviously market manipulation. I can't believe we're even having this conversation,\" said Matt Stoller, director of research at the American Economic Liberties Project. \"If market-manipulation law doesn't handle this, then what's it for?\"Other market veterans say Gill isn't doing anything wildly different from a Wall Street fund manager who holds a stock and discusses it on television. Steve Sosnick, chief strategist at Interactive Brokers, compared Gill's actions to an activist investor who quietly amasses a stake in a company, then reveals it publicly in hopes that the activist's entry into the stock will send it higher.\"He's hardly the first guy to talk his own book,\" Sosnick said.There are a number of unanswered questions about Gill's trading. The short seller Andrew Left, who took out a bearish bet against GameStop in recent days, has speculated that Gill could be backed by other investors, citing the huge size of his position in GameStop shares.Former SEC Chair Jay Clayton suggested in an interview with the Journal that Gill should publicly answer questions about his trading. Such questions include: Is he working with anyone else? How did Gill, an individual investor, finance his purchases of GameStop shares? Has he hedged any of his bets on GameStop? And what are his ultimate intentions?\"Absent answers to these questions,\" Clayton said, \"I'm very uncomfortable for retail investors and for market integrity.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":2,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":313753903861784,"gmtCreate":1717638481506,"gmtModify":1717638485503,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"This play is not about business fundamentals although company has minimal debt,&nbsp; was profitable last quarter,&nbsp; has 2bn in cash as Victor said shorts never closed.... boom","listText":"This play is not about business fundamentals although company has minimal debt,&nbsp; was profitable last quarter,&nbsp; has 2bn in cash as Victor said shorts never closed.... boom","text":"This play is not about business fundamentals although company has minimal debt, was profitable last quarter, has 2bn in cash as Victor said shorts never closed.... boom","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/313753903861784","repostId":"2441778574","repostType":2,"repost":{"id":"2441778574","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1717630865,"share":"https://www.laohu8.com/m/news/2441778574?lang=&edition=full","pubTime":"2024-06-06 07:41","market":"sh","language":"en","title":"GameStop Shares Resume Rally, Seal Highest Close in 3 Weeks","url":"https://stock-news.laohu8.com/highlight/detail?id=2441778574","media":"Dow Jones","summary":"The videogame retailer's shares are in the spotlight once again with the return of influential trader Keith Gill, also known as Roaring Kitty. Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday's session down 5.4%.The videogame retailer's shares  finished trading at $31.57, their highest close since May 15, 2024, when they ended that day's session at $39.55. GameStop's stock is now up four of the last five trading sessions.Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. , as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.Shares of GameStop surged again on Monday after a Reddit post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screens","content":"<html><head></head><body><p>Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday&#39;s session down 5.4%.</p><p>The videogame retailer&#39;s shares <a href=\"https://laohu8.com/S/GME\">$(GME)$</a> finished trading at $31.57, their highest close since May 15, 2024, when they ended that day&#39;s session at $39.55. GameStop&#39;s stock is now up four of the last five trading sessions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/96996b2cc8d52b3f5fac817c59ee6d12\" tg-width=\"805\" tg-height=\"625\"/></p><p>Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.</p><p>AMC shares closed up 7.5% Wednesday after ending Tuesday&#39;s session down 0.4%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a5e25304febd9208d080a8f856634448\" tg-width=\"804\" tg-height=\"625\"/></p><p>Shares of GameStop surged again on Monday after a <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screenshot posted Monday showed Gill holding his position.</p><p>MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green &#34;reverse&#34; card from the card game Uno.</p><p>On Tuesday, a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch that the state&#39;s securities division is &#34;looking into&#34; Gill&#39;s trading activities.</p><p>Citing people familiar with the matter, the Wall Street Journal reported this week that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Journal.</p><p>Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC&#39;s reported trading review.</p><p>GameStop shares are up 80.1% in 2024, while AMC&#39;s stock is down 15.9% and the S&amp;P 500 index SPX is up 12.3%.</p><p>Gordon Gottsegen contributed.</p></body></html>","collect":0,"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>GameStop Shares Resume Rally, Seal Highest Close in 3 Weeks</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\">\nGameStop Shares Resume Rally, Seal Highest Close in 3 Weeks\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-06-06 07:41</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday&#39;s session down 5.4%.</p><p>The videogame retailer&#39;s shares <a href=\"https://laohu8.com/S/GME\">$(GME)$</a> finished trading at $31.57, their highest close since May 15, 2024, when they ended that day&#39;s session at $39.55. GameStop&#39;s stock is now up four of the last five trading sessions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/96996b2cc8d52b3f5fac817c59ee6d12\" tg-width=\"805\" tg-height=\"625\"/></p><p>Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.</p><p>AMC shares closed up 7.5% Wednesday after ending Tuesday&#39;s session down 0.4%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a5e25304febd9208d080a8f856634448\" tg-width=\"804\" tg-height=\"625\"/></p><p>Shares of GameStop surged again on Monday after a <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screenshot posted Monday showed Gill holding his position.</p><p>MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green &#34;reverse&#34; card from the card game Uno.</p><p>On Tuesday, a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch that the state&#39;s securities division is &#34;looking into&#34; Gill&#39;s trading activities.</p><p>Citing people familiar with the matter, the Wall Street Journal reported this week that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Journal.</p><p>Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC&#39;s reported trading review.</p><p>GameStop shares are up 80.1% in 2024, while AMC&#39;s stock is down 15.9% and the S&amp;P 500 index SPX is up 12.3%.</p><p>Gordon Gottsegen contributed.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","AMC":"AMC院线","BK4108":"电影和娱乐","BK4577":"网络游戏","BK4585":"ETF&股票定投概念","BK4547":"WSB热门概念","BK4588":"碎股","GME":"游戏驿站"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2441778574","content_text":"Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday's session down 5.4%.The videogame retailer's shares $(GME)$ finished trading at $31.57, their highest close since May 15, 2024, when they ended that day's session at $39.55. GameStop's stock is now up four of the last five trading sessions.Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. $(AMC)$, as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.AMC shares closed up 7.5% Wednesday after ending Tuesday's session down 0.4%.Shares of GameStop surged again on Monday after a Reddit post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screenshot posted Monday showed Gill holding his position.MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green \"reverse\" card from the card game Uno.On Tuesday, a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch that the state's securities division is \"looking into\" Gill's trading activities.Citing people familiar with the matter, the Wall Street Journal reported this week that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Journal.Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC's reported trading review.GameStop shares are up 80.1% in 2024, while AMC's stock is down 15.9% and the S&P 500 index SPX is up 12.3%.Gordon Gottsegen contributed.","news_type":1},"isVote":1,"tweetType":1,"viewCount":56,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":312172856303656,"gmtCreate":1717239842324,"gmtModify":1717249059595,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"I agree with Victor,&nbsp; shorts never closed.","listText":"I agree with Victor,&nbsp; shorts never closed.","text":"I agree with Victor, shorts never closed.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/312172856303656","repostId":"2439154489","repostType":2,"repost":{"id":"2439154489","pubTimestamp":1717224410,"share":"https://www.laohu8.com/m/news/2439154489?lang=&edition=full","pubTime":"2024-06-01 14:46","market":"fut","language":"en","title":"GameStop Stock: No Fundamentals Behind The Recent Rally","url":"https://stock-news.laohu8.com/highlight/detail?id=2439154489","media":"seekingalpha","summary":"Let me explain here. GameStop's fundamentals First, let us talk about the company's earnings results recorded since my last coverage. Overall, we can safely say that the company's results have improved since then. This is both true of its quarterly sales and net income. The data is given in USD millions. GameStop's quarterly revenues and net income   Seeking Alpha   Prepared by the author based on Seeking Alpha's data   Prepared by the author based on Seeking Alpha's dataHowever, if we look at the company's annual sales and net profit histories, we can see that the revenues reported in February 2024 have declined somewhat compared to the same period a year ago. The data is given in USD millions.         January 2023 February 2024   Revenues 5927,2 5272,8   Net inco","content":"<html><head></head><body><ul style=\"\"><li><p>GameStop stock has rallied but its fundamentals remain poor.</p></li><li><p>The recent rally was driven by market speculation, not fundamental factors.</p></li><li><p>GameStop&#39;s sales have been declining and its profitability metrics are low.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/27fb32e4d0ad6e4030f25a753936fdcf\" tg-width=\"750\" tg-height=\"500\"/></p><p>jetcityimage</p><p>GameStop (NYSE:GME) stock has rallied incredibly the past month. The company&#39;s fundamentals, however, are as poor as they used to be a month ago. This is an update of my earlier work on GameStop following GME stock&#39;s miraculous rally. I will explain why buying the stock immediately after this rally would be pure speculation and why the company&#39;s stock fundamentals are poor.</p><h2 id=\"id_2879136696\">Recap of my previous GME analysis</h2><p>In my previous analysis, I covered GameStop&#39;s earnings. The analysis was published on 7 September 2023 and covered 2Q 2023 earnings. At the time, GameStop&#39;s quarterly earnings showed a decrease in net loss and a slight fall in revenues. I also pointed to the company&#39;s poor sales and profit histories. GME stock was not undervalued at the time and carried substantial downside risks. At the time, I also said there was potential for strategic changes or market speculation. No strategic changes have happened to the business so far. However, the recent market speculation had absolutely no fundamental factors behind it. Right now, the stock price is off its highs. And it is quite close to the levels seen when my September article about GameStop was published. One GME share was worth $18.89.</p><h2 id=\"id_3651835170\">GME rally</h2><p>GameStop (GME) skyrocketed from less than $15 per share to $50 a share, reaching levels unseen since August 2022. The stock price surged after Keith Gill, the trader at the center of the meme-stock craze, made a post in social media.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/023afa5e44a90363f74512aab2e06b9b\" tg-width=\"635\" tg-height=\"424\"/></p><p>Data by YCharts</p><p>GameStop’s (GME) share price had surged almost threefold from the end of April through mid-May.</p><p>Shares of the video-game seller soared after Keith Gill&#39;s TheRoaringKitty account tweeted for the first time in almost three years. About three years ago, Gill posted an analysis of GameStop as an undervalued company. This post was said to provoke GameStop’s (GME) rally and also a massive short-squeeze, making hedge funds record losses in January 2021.</p><p>But what has happened to the company itself, not its stock, since my last coverage? Let me explain here.</p><h2 id=\"id_155227382\">GameStop&#39;s fundamentals</h2><p>First, let us talk about the company&#39;s earnings results recorded since my last coverage.</p><p>Overall, we can safely say that the company&#39;s results have improved since then. This is both true of its quarterly sales and net income.</p><p>The data is given in USD millions.</p><p><strong>GameStop&#39;s quarterly revenues and net income</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/85081c0a750c62d6d12ec454734e07de\" tg-width=\"640\" tg-height=\"103\"/></p><p>Seeking Alpha</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44e6fdb0febf6082761500b47264ece3\" tg-width=\"640\" tg-height=\"385\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c8bab6a6daf56c8b119cb761767c00c4\" tg-width=\"612\" tg-height=\"343\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p>However, if we look at the company&#39;s annual sales and net profit histories, we can see that the revenues reported in February 2024 have declined somewhat compared to the same period a year ago.</p><p>The data is given in USD millions.</p><table style=\"border-collapse:collapse;\"><colgroup><col/><col/></colgroup><tbody><tr><td style=\"text-align:left;\"><p></p></td><td style=\"text-align:left;\"><p>January 2023</p></td><td style=\"text-align:left;\"><p>February 2024</p></td></tr><tr><td style=\"text-align:left;\"><p>Revenues</p></td><td style=\"text-align:left;\"><p>5927,2</p></td><td style=\"text-align:left;\"><p>5272,8</p></td></tr><tr><td style=\"text-align:left;\"><p>Net income</p></td><td style=\"text-align:left;\"><p>-313,1</p></td><td style=\"text-align:left;\"><p>6,7</p></td></tr></tbody></table><p><em>Source: Prepared by the author based on Seeking Alpha&#39;s data</em></p><p>At the same time, the net loss has declined over the same period. In fact, the company even managed to record a positive net result of $6.7 million.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/bcf8aa48783d10b757981e50cd3dedeb\" tg-width=\"531\" tg-height=\"334\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4d7ea0c38b7663d7ed8618866e207503\" tg-width=\"640\" tg-height=\"385\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p>This means that the company&#39;s efficiency has increased. But how did GameStop&#39;s management achieve this?</p><p>Well, as we can see from an excerpt from GME&#39;s income statement below, the cost of sales has decreased. The cost of sales is normally the direct cost associated with the goods sold. But most of the cost decline was due to a plunge in the company&#39;s general and administrative costs.</p><p>The declining cost of sales, as well as lower general and administrative costs, can be attributed to the company closing a substantial number of its stores.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8b65d2f97118facec05c1668e5ac3d43\" tg-width=\"640\" tg-height=\"555\"/></p><p>Seeking Alpha</p><p>GameStop ended 2023 with 2,915 operational locations in the US, a decline of 34 stores compared to the 2,949 it had operated a year earlier. As concerns to its operations abroad, GME shut down 210 international stores, decreasing their count from 1,464 to 1,254. The closure of unprofitable stores, however, did not only lead to a drop in costs but also to a decrease in sales revenues.</p><p>For the 4Q 2023 fiscal year, GameStop reported sales of $1.79 billion. This was a drop of 19.4% versus $2.23 billion for the same period of the 2022 fiscal year. This weakness, however, affected all of GameStop&#39;s departments. Hardware and accessories sales, for example, decreased from $1.24 billion to $1.09 billion. Software sales dropped even more, declining by 30.6% from $670.4 million to $465.3 million. Collectibles sales, meanwhile, decreased from $313.2 million to $233.7 million.</p><p>The most worrying fact is that the 4Q of 2023 included the holiday season, when many people rushed to buy Christmas presents. Video games sales should have also increased during this time period. So, this should have pushed GameStop&#39;s revenues up rather than down.</p><p>Interestingly, total video game sales in the US reached $57.2 billion in 2023, a rise from $56.6 billion in 2022. Video game content spending increased to $48.0 billion in 2023 compared to $47.5 billion for the previous year, thanks to a 13% rise in digital download spending across console platforms and an 11% rise in digital premium download segments on PC, cloud and non-console VR platforms. Hardware sales remained almost unchanged at $6.6 billion, and accessory sales increased by 4% ($2.6 billion versus $2.5 billion). But GameStop&#39;s sales have decreased for the same time period, despite the fact the industry did well, which should be worrying for GameStop&#39;s investors.</p><h2 id=\"id_1914250565\">GameStop&#39;s financial fundamentals</h2><table style=\"border-collapse:collapse;\"><tbody><tr><td style=\"text-align:left;\"><p>Indicator’s name</p></td><td style=\"text-align:left;\"><p>GameStop’s indicator</p></td><td style=\"text-align:left;\"><p>Average indicator for the US (based on FullRatio&#39;s data)</p></td></tr><tr><td style=\"text-align:left;\"><p>Current ratio</p></td><td style=\"text-align:left;\"><p>2,11</p></td><td style=\"text-align:left;\"><p>1,5 - 3,0</p></td></tr><tr><td style=\"text-align:left;\"><p>Debt/equity ratio</p></td><td style=\"text-align:left;\"><p>1,02</p></td><td style=\"text-align:left;\"><p>0,8</p></td></tr><tr><td style=\"text-align:left;\"><p>ROE</p></td><td style=\"text-align:left;\"><p>0,5%</p></td><td style=\"text-align:left;\"><p>13,84%</p></td></tr><tr><td style=\"text-align:left;\"><p>Cash flow from operations/Total debt</p></td><td style=\"text-align:left;\"><p>(0,15)</p></td><td style=\"text-align:left;\"><p>1 or above</p></td></tr></tbody></table><p><em>Source: Prepared by the author based on Seeking Alpha&#39;s and FullRatio&#39;s data</em></p><p>Overall, we can say that most of GameStop&#39;s key financial indicators are in line with US averages. Moreover, GameStop&#39;s net debt (total liabilities—cash and equivalents) is just $448.7 million, quite low for a company with annual sales of $5272.8 million. As many contributors here on Seeking Alpha pointed out, the company has ample amounts of cash. According to the last annual report, its cash and cash equivalents were $921.7 million, quite reasonable but a decline from $1271 million in 2021 and $1139 million in 2022.</p><p>The most problematic indicators of GME are its profitability metrics, including its return on equity (ROE), which is extremely low thanks to GME&#39;s net profit of $6.7 million. Its cash flow from operations was also low. As I have mentioned above, that is because of the company&#39;s falling sales. Even the cost cuts did not help.</p><h2 id=\"id_2494087135\">GME valuations</h2><p>GameStop is not undervalued right now, either.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/79295f171891fe4c50db0a429df91725\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>Obviously, the profitability margins signal just that. For example, GME&#39;s price-to-earnings (P/E) ratio is extremely high. However, this is explainable because GME has recorded its first profit, albeit very low, in several years&#39; time.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6513b3b9905e2bb6ca0890e853f4f6d3\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>But other metrics, including the EV-to-EBITDA and price-to-free cash flow ratios, signal just that. Some businesses face high depreciation and amortization expenses. Some businesses are forced to service very high levels of debt. That is why such companies have low or even negative profit margins. But this is not the case with GME. It simply does not get enough money from sales. So, its EBITDA and free cash flows are also low.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44da11169e8daa2226564533b2e1d439\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>Finally, GameStop&#39;s price-to-book (P/B) ratio is quite high as well. The average P/B of S&amp;P 500 companies is equivalent to 4,312. Among the S&amp;P 500 companies are overvalued high-tech corporations and very profitable businesses. So, it is a high indicator for a company like GameStop.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/28b978fd8291cddbdcd7b09b6f0f501b\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>Although GME is trading below the levels seen a month or so ago, the stock is still not undervalued according to the key valuation ratios.</p><h2 id=\"id_2386966737\">Risks to my thesis</h2><p>I do not personally see many objective reasons for the stock&#39;s justified rally. Of course, there is a <em>possibility</em> for the management to structurally reform the business. However, GameStop has been recording falling sales for many years already. And there was time for the management to change this brick-and-mortar game seller to a more innovative company. But not much has been done, indeed.</p><p>On the positive side, I can add that the company got &#34;leaner and fitter&#34; by cutting the cost of sales and general and administrative costs. GME also has a lot of cash and quite a low net debt. But the company&#39;s sales have been falling for a while. So, the positive effect was quite limited. If the sales keep falling further, the cash reserves will eventually be over.</p><p>The biggest bullish factor for GME is market speculation, something that happened a month ago or in January 2021. However, such a speculative stock price surge is impossible to predict.</p><h2 id=\"id_2499721499\">Conclusion</h2><p>Although GameStop has managed to cut its costs, its sales are not doing well. In spite of the not-so-easy situation for the business, the company&#39;s stock is quite expensive, according to the ratio analysis. The effect from the recent rally is not quite over. It is possible that the stock will eventually surge in value. But I do not personally see many fundamental reasons for the stock&#39;s appreciation. My rating remains unchanged. It is &#34;Hold&#39;.</p></body></html>","source":"seekingalpha","collect":0,"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>GameStop Stock: No Fundamentals Behind The Recent Rally</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\">\nGameStop Stock: No Fundamentals Behind The Recent Rally\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-01 14:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4696739-gamestop-stock-no-fundamentals-behind-the-recent-rally><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GameStop stock has rallied but its fundamentals remain poor.The recent rally was driven by market speculation, not fundamental factors.GameStop's sales have been declining and its profitability ...</p>\n\n<a href=\"https://seekingalpha.com/article/4696739-gamestop-stock-no-fundamentals-behind-the-recent-rally\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","BK4577":"网络游戏","GME":"游戏驿站","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4588":"碎股"},"source_url":"https://seekingalpha.com/article/4696739-gamestop-stock-no-fundamentals-behind-the-recent-rally","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2439154489","content_text":"GameStop stock has rallied but its fundamentals remain poor.The recent rally was driven by market speculation, not fundamental factors.GameStop's sales have been declining and its profitability metrics are low.jetcityimageGameStop (NYSE:GME) stock has rallied incredibly the past month. The company's fundamentals, however, are as poor as they used to be a month ago. This is an update of my earlier work on GameStop following GME stock's miraculous rally. I will explain why buying the stock immediately after this rally would be pure speculation and why the company's stock fundamentals are poor.Recap of my previous GME analysisIn my previous analysis, I covered GameStop's earnings. The analysis was published on 7 September 2023 and covered 2Q 2023 earnings. At the time, GameStop's quarterly earnings showed a decrease in net loss and a slight fall in revenues. I also pointed to the company's poor sales and profit histories. GME stock was not undervalued at the time and carried substantial downside risks. At the time, I also said there was potential for strategic changes or market speculation. No strategic changes have happened to the business so far. However, the recent market speculation had absolutely no fundamental factors behind it. Right now, the stock price is off its highs. And it is quite close to the levels seen when my September article about GameStop was published. One GME share was worth $18.89.GME rallyGameStop (GME) skyrocketed from less than $15 per share to $50 a share, reaching levels unseen since August 2022. The stock price surged after Keith Gill, the trader at the center of the meme-stock craze, made a post in social media.Data by YChartsGameStop’s (GME) share price had surged almost threefold from the end of April through mid-May.Shares of the video-game seller soared after Keith Gill's TheRoaringKitty account tweeted for the first time in almost three years. About three years ago, Gill posted an analysis of GameStop as an undervalued company. This post was said to provoke GameStop’s (GME) rally and also a massive short-squeeze, making hedge funds record losses in January 2021.But what has happened to the company itself, not its stock, since my last coverage? Let me explain here.GameStop's fundamentalsFirst, let us talk about the company's earnings results recorded since my last coverage.Overall, we can safely say that the company's results have improved since then. This is both true of its quarterly sales and net income.The data is given in USD millions.GameStop's quarterly revenues and net incomeSeeking AlphaPrepared by the author based on Seeking Alpha's dataPrepared by the author based on Seeking Alpha's dataHowever, if we look at the company's annual sales and net profit histories, we can see that the revenues reported in February 2024 have declined somewhat compared to the same period a year ago.The data is given in USD millions.January 2023February 2024Revenues5927,25272,8Net income-313,16,7Source: Prepared by the author based on Seeking Alpha's dataAt the same time, the net loss has declined over the same period. In fact, the company even managed to record a positive net result of $6.7 million.Prepared by the author based on Seeking Alpha's dataPrepared by the author based on Seeking Alpha's dataThis means that the company's efficiency has increased. But how did GameStop's management achieve this?Well, as we can see from an excerpt from GME's income statement below, the cost of sales has decreased. The cost of sales is normally the direct cost associated with the goods sold. But most of the cost decline was due to a plunge in the company's general and administrative costs.The declining cost of sales, as well as lower general and administrative costs, can be attributed to the company closing a substantial number of its stores.Seeking AlphaGameStop ended 2023 with 2,915 operational locations in the US, a decline of 34 stores compared to the 2,949 it had operated a year earlier. As concerns to its operations abroad, GME shut down 210 international stores, decreasing their count from 1,464 to 1,254. The closure of unprofitable stores, however, did not only lead to a drop in costs but also to a decrease in sales revenues.For the 4Q 2023 fiscal year, GameStop reported sales of $1.79 billion. This was a drop of 19.4% versus $2.23 billion for the same period of the 2022 fiscal year. This weakness, however, affected all of GameStop's departments. Hardware and accessories sales, for example, decreased from $1.24 billion to $1.09 billion. Software sales dropped even more, declining by 30.6% from $670.4 million to $465.3 million. Collectibles sales, meanwhile, decreased from $313.2 million to $233.7 million.The most worrying fact is that the 4Q of 2023 included the holiday season, when many people rushed to buy Christmas presents. Video games sales should have also increased during this time period. So, this should have pushed GameStop's revenues up rather than down.Interestingly, total video game sales in the US reached $57.2 billion in 2023, a rise from $56.6 billion in 2022. Video game content spending increased to $48.0 billion in 2023 compared to $47.5 billion for the previous year, thanks to a 13% rise in digital download spending across console platforms and an 11% rise in digital premium download segments on PC, cloud and non-console VR platforms. Hardware sales remained almost unchanged at $6.6 billion, and accessory sales increased by 4% ($2.6 billion versus $2.5 billion). But GameStop's sales have decreased for the same time period, despite the fact the industry did well, which should be worrying for GameStop's investors.GameStop's financial fundamentalsIndicator’s nameGameStop’s indicatorAverage indicator for the US (based on FullRatio's data)Current ratio2,111,5 - 3,0Debt/equity ratio1,020,8ROE0,5%13,84%Cash flow from operations/Total debt(0,15)1 or aboveSource: Prepared by the author based on Seeking Alpha's and FullRatio's dataOverall, we can say that most of GameStop's key financial indicators are in line with US averages. Moreover, GameStop's net debt (total liabilities—cash and equivalents) is just $448.7 million, quite low for a company with annual sales of $5272.8 million. As many contributors here on Seeking Alpha pointed out, the company has ample amounts of cash. According to the last annual report, its cash and cash equivalents were $921.7 million, quite reasonable but a decline from $1271 million in 2021 and $1139 million in 2022.The most problematic indicators of GME are its profitability metrics, including its return on equity (ROE), which is extremely low thanks to GME's net profit of $6.7 million. Its cash flow from operations was also low. As I have mentioned above, that is because of the company's falling sales. Even the cost cuts did not help.GME valuationsGameStop is not undervalued right now, either.Data by YChartsObviously, the profitability margins signal just that. For example, GME's price-to-earnings (P/E) ratio is extremely high. However, this is explainable because GME has recorded its first profit, albeit very low, in several years' time.Data by YChartsBut other metrics, including the EV-to-EBITDA and price-to-free cash flow ratios, signal just that. Some businesses face high depreciation and amortization expenses. Some businesses are forced to service very high levels of debt. That is why such companies have low or even negative profit margins. But this is not the case with GME. It simply does not get enough money from sales. So, its EBITDA and free cash flows are also low.Data by YChartsFinally, GameStop's price-to-book (P/B) ratio is quite high as well. The average P/B of S&P 500 companies is equivalent to 4,312. Among the S&P 500 companies are overvalued high-tech corporations and very profitable businesses. So, it is a high indicator for a company like GameStop.Data by YChartsAlthough GME is trading below the levels seen a month or so ago, the stock is still not undervalued according to the key valuation ratios.Risks to my thesisI do not personally see many objective reasons for the stock's justified rally. Of course, there is a possibility for the management to structurally reform the business. However, GameStop has been recording falling sales for many years already. And there was time for the management to change this brick-and-mortar game seller to a more innovative company. But not much has been done, indeed.On the positive side, I can add that the company got \"leaner and fitter\" by cutting the cost of sales and general and administrative costs. GME also has a lot of cash and quite a low net debt. But the company's sales have been falling for a while. So, the positive effect was quite limited. If the sales keep falling further, the cash reserves will eventually be over.The biggest bullish factor for GME is market speculation, something that happened a month ago or in January 2021. However, such a speculative stock price surge is impossible to predict.ConclusionAlthough GameStop has managed to cut its costs, its sales are not doing well. In spite of the not-so-easy situation for the business, the company's stock is quite expensive, according to the ratio analysis. The effect from the recent rally is not quite over. It is possible that the stock will eventually surge in value. But I do not personally see many fundamental reasons for the stock's appreciation. My rating remains unchanged. It is \"Hold'.","news_type":1},"isVote":1,"tweetType":1,"viewCount":21,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":305706295718144,"gmtCreate":1715669825632,"gmtModify":1715669962313,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"as Victor said shorts never closed... boom","listText":"as Victor said shorts never closed... boom","text":"as Victor said shorts never closed... boom","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/305706295718144","isVote":1,"tweetType":1,"viewCount":16,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":300409727553672,"gmtCreate":1714361641223,"gmtModify":1714368233379,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"As Victor said shorts never closed.... boom","listText":"As Victor said shorts never closed.... boom","text":"As Victor said shorts never closed.... boom","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/300409727553672","repostId":"2430080557","repostType":2,"repost":{"id":"2430080557","pubTimestamp":1714359516,"share":"https://www.laohu8.com/m/news/2430080557?lang=&edition=full","pubTime":"2024-04-29 10:58","market":"us","language":"en","title":"GameStop: Approaching An Optimistic Fair Value But Not There Yet","url":"https://stock-news.laohu8.com/highlight/detail?id=2430080557","media":"Seeking Alpha","summary":"I would steer clear of the GameStop stock – in every sense – both long and short.The fact that I have to mention this is a consequence for all serious market participants and potentially shows the dam","content":"<html><head></head><body><ul style=\"\"><li><p>I would steer clear of the GameStop stock – in every sense – both long and short.</p></li><li><p>The fact that I have to mention this is a consequence for all serious market participants and potentially shows the damage to market transparency and efficiency to this day.</p></li><li><p>GameStop does have some value, but it still lies well below its current share price. &#34;Healthy shrinkage&#34; leads back to profitability.</p></li><li><p>Current valuation implies reduced contraction whilst significantly expanding margins.</p></li><li><p>I have already covered other representatives of the gaming industry, including Nintendo and Take-Two Interactive.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3618396cc4f4e4fac0a49f89df65762a\" alt=\"Michael M. Santiago\" title=\"Michael M. Santiago\" tg-width=\"750\" tg-height=\"500\"/><span>Michael M. Santiago</span></p><h2 id=\"id_3934977145\">A Three-Year Long Ride Down Towards Fair Value</h2><p>At about 15 USD a share two months ago, my attention was drawn back to GameStop (NYSE:GME) three years after its dramatic showdown between retail traders and hedge funds, which led to its erratic price movements. I suggested that in a highly optimistic scenario, the downside could at least drop to 10 USD, a level we have already witnessed. Now, given GME&#39;s latest quarterly results, I conducted a more in-depth analysis of its current fair value. These are the key points of my thesis:</p><ul style=\"\"><li><p>I argue that although GME has already traversed the majority of its remarkably extended journey down from excessive peaks toward fair value, it still hasn&#39;t reached its destination.</p></li><li><p>The business model simply continues to offer little in terms of attractiveness.</p></li><li><p>I compare the macroeconomic, monetary, and fiscal landscape during the height of the excesses with how fundamentally different it appears today.</p></li><li><p>Most importantly, I conduct a simplified yet fundamentally-based valuation for GME, based on the most recent numbers.</p></li></ul><h2 id=\"id_2362039122\">Partially Charming, But Not A Sustainable Business Model</h2><p>Looking into GME&#39;s operational revenue segments over time, it is easily observable that their formerly high-margin segment of <em>reselling second-hand gaming products</em> has been in a consistent decline since 2012. This is not very surprising and points to a fundamental problem that is still valid today. Due to digital sales, often directly marketed through the gaming platforms&#39; in-house stores, the market for pre-owned video games should further decline significantly. And here we are not even discussing outsourcing computing power to cloud gaming, which could potentially render hardware obsolete in the future. With that, I also anticipate the existing games and hardware to consistently decrease in market value, despite some rare pieces that might gain vintage charm and value one day. Moreover, I see little rationale for someone to sell their old hardware cheaply to GameStop, which aims to profit from it, when it is easier than ever to sell through various reselling platforms privately, without intermediaries. &#34;Our largest vendors are Sony, Nintendo, and Microsoft, which collectively accounted for a majority of our new product purchases in fiscal 2023&#34;, an unsurprising fact according to GME&#39;s 10-K filings that still leaves a very bitter taste, as it clearly indicates GameStop&#39;s lack of market power or, conversely, the high power of its suppliers.</p><p>On the other hand, I believe that physical <em>collectibles,</em> as a counterpart to digitalization, might remain in demand among gaming and franchise fans. But &#34;Collectibles also included our digital asset wallet and NFT marketplace activities in fiscal 2023; however, both activities were wound down in the fourth quarter of 2023,&#34; it says in GME&#39;s 10-K filings. Issues like these, on the other hand, make me less optimistic about seeing a serious long-term strategy in GameStop. They jumped onto the NFT bandwagon and shut it down shortly thereafter. In this context, I would like to point out another risk that GME itself has identified in its 10-K filings: High turnover in key leadership positions could lead to a lack of clarity in GameStop&#39;s strategic direction. Coupled with high turnover rates in the retail and fulfillment sectors, this poses a risk to GameStop&#39;s ability to attract and retain skilled personnel, including key executives, potentially affecting the company&#39;s sustainable business development.</p><p>Looking at the formerly reported <em>segment &#34;digital&#34;,</em> it is evident that GameStop has never been able to significantly grow in this area. From my perspective, GameStop is therefore a nostalgic remnant of a relatively analog world, whose preservation would personally delight me, but which today does not show any promising prospects for a future business model.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b01ca0a173ba863026e2a06357b8d717\" alt=\"GME revenue segments (Aktienfinder.net)\" title=\"GME revenue segments (Aktienfinder.net)\" tg-width=\"640\" tg-height=\"141\"/><span>GME revenue segments (Aktienfinder.net)</span></p><h2 id=\"id_2366121430\">Macroeconomic Enablers of a Rollercoaster Ride</h2><p>Some may still view GME differently than I do on a fundamental level, either through trading strategies or idealistic movements. But despite my support for democratizing the stock market, I do not at all see the GameStop events as beneficial to the cause. The &#34;diamond hands&#34; movement, while aiming to challenge the status quo, resulted in significant losses for many, with GME now trading almost 90% below its peak. Today&#39;s trading volume is no more but a shadow of its 2021 frenzy, underscoring the transient nature of such movements. This episode, marred by manipulative tactics on both sides, underscores a power struggle without any lasting victors.</p><p>Certainly, herd-psychological and technical market mechanisms like Short Squeezes were at play. However, as a fundamental analyst, I am also interested in the broader context that may have facilitated these occurrences. One of the primary sources of &#34;free money&#34; enabling investors to engage in such behavior was monetary policy, with Fed assets doubling and interest rates being slashed in response to the pandemic. With this money, for instance, the US government was able to distribute funds like watering gardens via stimulus checks to the population. From March 2020 to March 2021, $814 billion flowed in three rounds, averaging 159 million payments per round. This amounted to a staggering 4% compared to the 2021 US Real GDP, or more than $5,000 per recipient.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5710225dbdb34a6a0099999394a08a3e\" alt=\"multpl.com, FRED, investing.com\" title=\"multpl.com, FRED, investing.com\" tg-width=\"640\" tg-height=\"382\"/><span>multpl.com, FRED, investing.com</span></p><p>As we are all aware, the current environment is markedly different, with the Fed having reduced its balance sheet and having substantially raised interest rates since the outset of 2022. Therefore, I suspect that stimulus checks played a significant role in enabling retail investors to engage in such behavior. This is clearly not something to speculate about occurring again in today&#39;s environment.</p><h2 id=\"id_48820230\">Accelerated Contraction During Holiday Season</h2><p>For a long-term retrospective to 2017, I reassigned the old segments to the new structure at my discretion. Notably, the software segment shrunk annually by -14% over eight years. Due to the more stable performance of the other two segments, the total annual revenue decline during this period was -8%. After having established the new segment structure as of 2020, the shrinkage of the software segment was -20% annually and -7% at the corporate level. The dynamics of this contraction became even more pronounced in the last fiscal year compared to long-term averages, with an acceleration to -11% in total revenue, and the quarter-over-year comparison showed the most significant contraction, with -19% in total revenue or -24% in the software segment, despite this being the seasonally strongest quarter with Christmas holiday sales. &#34;Our business (…) is seasonal, with the major portion of sales and operating profit realized during the fourth quarter of the fiscal year (…). (…) During fiscal 2023 and 2022, we generated approximately 34% and 38%, respectively, of our sales during the fourth quarter.&#34; (GME 10-K Filings)</p><p>On a positive note, operational margins appear to have bottomed out two years ago and have since returned to breakeven on an annual basis, with a 3% net margin in the holiday quarter. Next, I optimistically assume that through a &#34;healthy shrinkage&#34;, GameStop will nearly reach old profitability levels with a 6% operational margin.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/1bbcc494fb61e32cfbd74de08f057b44\" alt=\"Author | Data: Aktienfinder.net\" title=\"Author | Data: Aktienfinder.net\" tg-width=\"640\" tg-height=\"224\"/><span>Author | Data: Aktienfinder.net</span></p><h2 id=\"id_1203239824\">Investment Behavior Illustrating Shrinkage</h2><p>For a simplified derivation of free cash flow, I particularly consider the depreciation to CAPEX ratio resulting from GameStop&#39;s contraction. Historical data up to 2018 shows CAPEX exceeding depreciation aimed at growth, whereas since 2019 the company has fully embraced contraction, with depreciation consistently exceeding investments - most recently with a 63% CAPEX to depreciation ratio, or $20 million higher depreciation than investments. This results in a positive cash effect, contrary to the typical negative cash effect seen in growing companies that invest more than they depreciate. I will account for this positive cash effect in the subsequent calculation of free cash flow by adding the latest effect of $20 million to NOPLAT.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2571e3b5901480b277c84a541f83a89d\" alt=\"Author | Data: Seeking Alpha\" title=\"Author | Data: Seeking Alpha\" tg-width=\"640\" tg-height=\"167\"/><span>Author | Data: Seeking Alpha</span></p><h2 id=\"id_2163227530\">Fair Value With Optimistic Margins</h2><p>Regarding the terminal growth rate, I rely on the historical revenue CAGR of -7.8% over the past eight years, given there are no signs of a turnaround toward fundamental business growth. While this might initially seem high, it&#39;s still significantly lower than the accelerated contraction dynamics observed in the past year and the most recent quarter. In the sensitivity analysis, I also consider lower contraction rates, extending to a 0% growth scenario.</p><p>From all the assumptions discussed so far, a simplified company valuation emerges: Revenue x an optimistic future EBIT margin of 6% minus 25% taxes, plus the positive cash effect from low CAPEX requirements = free cash flow. The risk profile is marked by low country risk but a high 24M Beta factor of 1.8 (according to Seeking Alpha), leading to a WACC of approximately 11%. Adding the perpetual shrinkage assumption of around 8%, the Gordon Growth formula yields 19% in the denominator, resulting in a discounted value of FCF at 1.34 billion USD. Adding net cash, this yields a 1.94 billion USD equity value or 6.34 USD per share. Today&#39;s market value of around 11 USD, for instance, implies a 10% EBIT margin goal with only -4% terminal contraction or an 8% EBIT margin with zero growth starting now. Both scenarios seem unrealistic from today&#39;s perspective.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/95dbebeb19a03b285e85d52352c3701b\" alt=\"Author | Data: Aktienfinder.net, Seeking Alpha\" title=\"Author | Data: Aktienfinder.net, Seeking Alpha\" tg-width=\"640\" tg-height=\"462\"/><span>Author | Data: Aktienfinder.net, Seeking Alpha</span></p><p>The assumption of perpetual decline logically doesn&#39;t provide a basis for seeing GameStop as an investment case. In fact, this approach only accounts for the cumulative future earnings on today&#39;s book value (recorded equity value). The book value is estimated at 1.34 billion USD.</p><h2 id=\"id_972782077\">Conclusion And Personal Perspective</h2><p>This article was not written for traders or ideologically inclined activists who might interpret stock prices completely differently. From my very personal point of view, the GME madness was probably a lose-lose situation for all participants, with very few winners on the side of some &#34;revolutionary&#34; retail traders, who finally let each other down by taking profits themselves - not being better than others whom they accuse of market manipulation. From a fundamental perspective, GME&#39;s current value is indeed already closer to what could be considered plausible in overly optimistic scenarios, but based on my assumptions, it remains significantly overvalued. This is without even addressing the broader question of whether investing in a shrinking business model makes sense. If you want to explore other aspects of the gaming industry, I&#39;d be happy if you checked out my related articles on Nintendo (OTCPK:NTDOY)(OTCPK:NTDOF) and Take-Two Interactive (TTWO).</p></body></html>","source":"seekingalpha","collect":0,"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>GameStop: Approaching An Optimistic Fair Value But Not There Yet</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; 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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: Approaching An Optimistic Fair Value But Not There Yet\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-29 10:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4687078-gamestop-approaching-an-optimistic-fair-value-but-not-there-yet><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>I would steer clear of the GameStop stock – in every sense – both long and short.The fact that I have to mention this is a consequence for all serious market participants and potentially shows the ...</p>\n\n<a href=\"https://seekingalpha.com/article/4687078-gamestop-approaching-an-optimistic-fair-value-but-not-there-yet\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4554":"元宇宙及AR概念","BK4588":"碎股","BK4076":"电脑与电子产品零售","BK4085":"互动家庭娱乐","BK4577":"网络游戏","BK4524":"宅经济概念","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","GME":"游戏驿站","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC"},"source_url":"https://seekingalpha.com/article/4687078-gamestop-approaching-an-optimistic-fair-value-but-not-there-yet","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2430080557","content_text":"I would steer clear of the GameStop stock – in every sense – both long and short.The fact that I have to mention this is a consequence for all serious market participants and potentially shows the damage to market transparency and efficiency to this day.GameStop does have some value, but it still lies well below its current share price. \"Healthy shrinkage\" leads back to profitability.Current valuation implies reduced contraction whilst significantly expanding margins.I have already covered other representatives of the gaming industry, including Nintendo and Take-Two Interactive.Michael M. SantiagoA Three-Year Long Ride Down Towards Fair ValueAt about 15 USD a share two months ago, my attention was drawn back to GameStop (NYSE:GME) three years after its dramatic showdown between retail traders and hedge funds, which led to its erratic price movements. I suggested that in a highly optimistic scenario, the downside could at least drop to 10 USD, a level we have already witnessed. Now, given GME's latest quarterly results, I conducted a more in-depth analysis of its current fair value. These are the key points of my thesis:I argue that although GME has already traversed the majority of its remarkably extended journey down from excessive peaks toward fair value, it still hasn't reached its destination.The business model simply continues to offer little in terms of attractiveness.I compare the macroeconomic, monetary, and fiscal landscape during the height of the excesses with how fundamentally different it appears today.Most importantly, I conduct a simplified yet fundamentally-based valuation for GME, based on the most recent numbers.Partially Charming, But Not A Sustainable Business ModelLooking into GME's operational revenue segments over time, it is easily observable that their formerly high-margin segment of reselling second-hand gaming products has been in a consistent decline since 2012. This is not very surprising and points to a fundamental problem that is still valid today. Due to digital sales, often directly marketed through the gaming platforms' in-house stores, the market for pre-owned video games should further decline significantly. And here we are not even discussing outsourcing computing power to cloud gaming, which could potentially render hardware obsolete in the future. With that, I also anticipate the existing games and hardware to consistently decrease in market value, despite some rare pieces that might gain vintage charm and value one day. Moreover, I see little rationale for someone to sell their old hardware cheaply to GameStop, which aims to profit from it, when it is easier than ever to sell through various reselling platforms privately, without intermediaries. \"Our largest vendors are Sony, Nintendo, and Microsoft, which collectively accounted for a majority of our new product purchases in fiscal 2023\", an unsurprising fact according to GME's 10-K filings that still leaves a very bitter taste, as it clearly indicates GameStop's lack of market power or, conversely, the high power of its suppliers.On the other hand, I believe that physical collectibles, as a counterpart to digitalization, might remain in demand among gaming and franchise fans. But \"Collectibles also included our digital asset wallet and NFT marketplace activities in fiscal 2023; however, both activities were wound down in the fourth quarter of 2023,\" it says in GME's 10-K filings. Issues like these, on the other hand, make me less optimistic about seeing a serious long-term strategy in GameStop. They jumped onto the NFT bandwagon and shut it down shortly thereafter. In this context, I would like to point out another risk that GME itself has identified in its 10-K filings: High turnover in key leadership positions could lead to a lack of clarity in GameStop's strategic direction. Coupled with high turnover rates in the retail and fulfillment sectors, this poses a risk to GameStop's ability to attract and retain skilled personnel, including key executives, potentially affecting the company's sustainable business development.Looking at the formerly reported segment \"digital\", it is evident that GameStop has never been able to significantly grow in this area. From my perspective, GameStop is therefore a nostalgic remnant of a relatively analog world, whose preservation would personally delight me, but which today does not show any promising prospects for a future business model.GME revenue segments (Aktienfinder.net)Macroeconomic Enablers of a Rollercoaster RideSome may still view GME differently than I do on a fundamental level, either through trading strategies or idealistic movements. But despite my support for democratizing the stock market, I do not at all see the GameStop events as beneficial to the cause. The \"diamond hands\" movement, while aiming to challenge the status quo, resulted in significant losses for many, with GME now trading almost 90% below its peak. Today's trading volume is no more but a shadow of its 2021 frenzy, underscoring the transient nature of such movements. This episode, marred by manipulative tactics on both sides, underscores a power struggle without any lasting victors.Certainly, herd-psychological and technical market mechanisms like Short Squeezes were at play. However, as a fundamental analyst, I am also interested in the broader context that may have facilitated these occurrences. One of the primary sources of \"free money\" enabling investors to engage in such behavior was monetary policy, with Fed assets doubling and interest rates being slashed in response to the pandemic. With this money, for instance, the US government was able to distribute funds like watering gardens via stimulus checks to the population. From March 2020 to March 2021, $814 billion flowed in three rounds, averaging 159 million payments per round. This amounted to a staggering 4% compared to the 2021 US Real GDP, or more than $5,000 per recipient.multpl.com, FRED, investing.comAs we are all aware, the current environment is markedly different, with the Fed having reduced its balance sheet and having substantially raised interest rates since the outset of 2022. Therefore, I suspect that stimulus checks played a significant role in enabling retail investors to engage in such behavior. This is clearly not something to speculate about occurring again in today's environment.Accelerated Contraction During Holiday SeasonFor a long-term retrospective to 2017, I reassigned the old segments to the new structure at my discretion. Notably, the software segment shrunk annually by -14% over eight years. Due to the more stable performance of the other two segments, the total annual revenue decline during this period was -8%. After having established the new segment structure as of 2020, the shrinkage of the software segment was -20% annually and -7% at the corporate level. The dynamics of this contraction became even more pronounced in the last fiscal year compared to long-term averages, with an acceleration to -11% in total revenue, and the quarter-over-year comparison showed the most significant contraction, with -19% in total revenue or -24% in the software segment, despite this being the seasonally strongest quarter with Christmas holiday sales. \"Our business (…) is seasonal, with the major portion of sales and operating profit realized during the fourth quarter of the fiscal year (…). (…) During fiscal 2023 and 2022, we generated approximately 34% and 38%, respectively, of our sales during the fourth quarter.\" (GME 10-K Filings)On a positive note, operational margins appear to have bottomed out two years ago and have since returned to breakeven on an annual basis, with a 3% net margin in the holiday quarter. Next, I optimistically assume that through a \"healthy shrinkage\", GameStop will nearly reach old profitability levels with a 6% operational margin.Author | Data: Aktienfinder.netInvestment Behavior Illustrating ShrinkageFor a simplified derivation of free cash flow, I particularly consider the depreciation to CAPEX ratio resulting from GameStop's contraction. Historical data up to 2018 shows CAPEX exceeding depreciation aimed at growth, whereas since 2019 the company has fully embraced contraction, with depreciation consistently exceeding investments - most recently with a 63% CAPEX to depreciation ratio, or $20 million higher depreciation than investments. This results in a positive cash effect, contrary to the typical negative cash effect seen in growing companies that invest more than they depreciate. I will account for this positive cash effect in the subsequent calculation of free cash flow by adding the latest effect of $20 million to NOPLAT.Author | Data: Seeking AlphaFair Value With Optimistic MarginsRegarding the terminal growth rate, I rely on the historical revenue CAGR of -7.8% over the past eight years, given there are no signs of a turnaround toward fundamental business growth. While this might initially seem high, it's still significantly lower than the accelerated contraction dynamics observed in the past year and the most recent quarter. In the sensitivity analysis, I also consider lower contraction rates, extending to a 0% growth scenario.From all the assumptions discussed so far, a simplified company valuation emerges: Revenue x an optimistic future EBIT margin of 6% minus 25% taxes, plus the positive cash effect from low CAPEX requirements = free cash flow. The risk profile is marked by low country risk but a high 24M Beta factor of 1.8 (according to Seeking Alpha), leading to a WACC of approximately 11%. Adding the perpetual shrinkage assumption of around 8%, the Gordon Growth formula yields 19% in the denominator, resulting in a discounted value of FCF at 1.34 billion USD. Adding net cash, this yields a 1.94 billion USD equity value or 6.34 USD per share. Today's market value of around 11 USD, for instance, implies a 10% EBIT margin goal with only -4% terminal contraction or an 8% EBIT margin with zero growth starting now. Both scenarios seem unrealistic from today's perspective.Author | Data: Aktienfinder.net, Seeking AlphaThe assumption of perpetual decline logically doesn't provide a basis for seeing GameStop as an investment case. In fact, this approach only accounts for the cumulative future earnings on today's book value (recorded equity value). The book value is estimated at 1.34 billion USD.Conclusion And Personal PerspectiveThis article was not written for traders or ideologically inclined activists who might interpret stock prices completely differently. From my very personal point of view, the GME madness was probably a lose-lose situation for all participants, with very few winners on the side of some \"revolutionary\" retail traders, who finally let each other down by taking profits themselves - not being better than others whom they accuse of market manipulation. From a fundamental perspective, GME's current value is indeed already closer to what could be considered plausible in overly optimistic scenarios, but based on my assumptions, it remains significantly overvalued. This is without even addressing the broader question of whether investing in a shrinking business model makes sense. If you want to explore other aspects of the gaming industry, I'd be happy if you checked out my related articles on Nintendo (OTCPK:NTDOY)(OTCPK:NTDOF) and Take-Two Interactive (TTWO).","news_type":1},"isVote":1,"tweetType":1,"viewCount":22,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":214934169034864,"gmtCreate":1693511067733,"gmtModify":1693520718221,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"I like the stock&nbsp;","listText":"I like the stock&nbsp;","text":"I like the stock","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/214934169034864","repostId":"1137858821","repostType":2,"isVote":1,"tweetType":1,"viewCount":53,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":314264075878648,"gmtCreate":1717755964780,"gmtModify":1717755968938,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Shorts never closed.&nbsp;","listText":"Shorts never closed.&nbsp;","text":"Shorts never closed.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/314264075878648","repostId":"2441053270","repostType":2,"repost":{"id":"2441053270","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1717757242,"share":"https://www.laohu8.com/m/news/2441053270?lang=&edition=full","pubTime":"2024-06-07 18:47","market":"us","language":"en","title":"GameStop Posts Decline in Quarterly Sales, Reveals Plan to Sell More Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2441053270","media":"Reuters","summary":"June 7  - GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier.The shares jumped 25% in premarket trading.","content":"<html><head></head><body><p>【<a href=\"https://ttm.financial/RN?name=RNLive&amp;rndata=%7B%22liveId%22:%221801129300007002%22,%22type%22:1%7D\" title=\"Click here to tune into &#34;Roaring Kitty&#34; live broadcast\" target=\"_blank\" class=\"\">Click here to tune into &#34;Roaring Kitty&#34; live broadcast</a> 】</p><p>June 7 (Reuters) - GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.</p><p>The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier. The sales decline was steeper than the two Wall Street analysts that cover the stock expected. Their estimates were in a range of $900 million to $1.09 billion per FactSet.</p><p>GameStop lost $32.3 million during the quarter, a narrower loss than the $50.5 million suffered in the year-earlier period.</p><p>The company also gave an update on its ongoing stock sales, saying it would sell an additional 30 million shares on top of the 45 million it had already sold.</p><p>The first quarter results came as a surprise. The company, which will be the subject of a YouTube livestream by meme trader &#34;Roaring Kitty&#34; later Friday, was supposed to release results next week. The shares tumbled 16% in premarket trading, erasing earlier gains.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/50a8f63752a3bc003ae6396a55a273b9\" title=\"\" tg-width=\"863\" tg-height=\"628\"/></p><p></p></body></html>","collect":0,"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>GameStop Posts Decline in Quarterly Sales, Reveals Plan to Sell More Stock</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\">\nGameStop Posts Decline in Quarterly Sales, Reveals Plan to Sell More Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2024-06-07 18:47</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>【<a href=\"https://ttm.financial/RN?name=RNLive&amp;rndata=%7B%22liveId%22:%221801129300007002%22,%22type%22:1%7D\" title=\"Click here to tune into &#34;Roaring Kitty&#34; live broadcast\" target=\"_blank\" class=\"\">Click here to tune into &#34;Roaring Kitty&#34; live broadcast</a> 】</p><p>June 7 (Reuters) - GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.</p><p>The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier. The sales decline was steeper than the two Wall Street analysts that cover the stock expected. Their estimates were in a range of $900 million to $1.09 billion per FactSet.</p><p>GameStop lost $32.3 million during the quarter, a narrower loss than the $50.5 million suffered in the year-earlier period.</p><p>The company also gave an update on its ongoing stock sales, saying it would sell an additional 30 million shares on top of the 45 million it had already sold.</p><p>The first quarter results came as a surprise. The company, which will be the subject of a YouTube livestream by meme trader &#34;Roaring Kitty&#34; later Friday, was supposed to release results next week. The shares tumbled 16% in premarket trading, erasing earlier gains.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/50a8f63752a3bc003ae6396a55a273b9\" title=\"\" tg-width=\"863\" tg-height=\"628\"/></p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站"},"source_url":"https://api.rkd.refinitiv.com/api/News/News.svc/REST/News_1/RetrieveStoryML_1","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2441053270","content_text":"【Click here to tune into \"Roaring Kitty\" live broadcast 】June 7 (Reuters) - GameStop reported a decline in first-quarter net sales on Friday, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.The company posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion in the same period a year earlier. The sales decline was steeper than the two Wall Street analysts that cover the stock expected. Their estimates were in a range of $900 million to $1.09 billion per FactSet.GameStop lost $32.3 million during the quarter, a narrower loss than the $50.5 million suffered in the year-earlier period.The company also gave an update on its ongoing stock sales, saying it would sell an additional 30 million shares on top of the 45 million it had already sold.The first quarter results came as a surprise. The company, which will be the subject of a YouTube livestream by meme trader \"Roaring Kitty\" later Friday, was supposed to release results next week. The shares tumbled 16% in premarket trading, erasing earlier gains.","news_type":1},"isVote":1,"tweetType":1,"viewCount":44,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4093561479903300","authorId":"4093561479903300","name":"SPACE ROCKET","avatar":"https://static.tigerbbs.com/7dceae168a13267cc21f2576321e67f8","crmLevel":9,"crmLevelSwitch":1},"content":"Shorts will short it back to $20. GME will come back down to earth.","text":"Shorts will short it back to $20. GME will come back down to earth.","html":"Shorts will short it back to $20. GME will come back down to earth."}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":314078630662200,"gmtCreate":1717699827524,"gmtModify":1717699831425,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"Investigate jim crammer for manipulation,&nbsp; shorts never closed","listText":"Investigate jim crammer for manipulation,&nbsp; shorts never closed","text":"Investigate jim crammer for manipulation, shorts never closed","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/314078630662200","repostId":"2441262795","repostType":2,"repost":{"id":"2441262795","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1717684720,"share":"https://www.laohu8.com/m/news/2441262795?lang=&edition=full","pubTime":"2024-06-06 22:38","market":"hk","language":"en","title":"Keith Gill's GameStop Trades Pose Conundrum for Market Cops","url":"https://stock-news.laohu8.com/highlight/detail?id=2441262795","media":"Dow Jones","summary":"Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill's tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his Reddit account on Monday afternoon.Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based in","content":"<html><head></head><body><p>Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?</p><p>Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.</p><p>For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill&#39;s tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> account on Monday afternoon.</p><p>&#34;What he&#39;s doing is exploiting a gap in the rules,&#34; said Daniel Hawke, a partner at the law firm Arnold &amp; Porter Kaye Scholer and former head of the SEC&#39;s market-abuse unit. &#34;He is using his celebrity and influence to draw people to buy the stock. The rules that exist do not permit the SEC to prosecute that conduct unless there is an element of deception.&#34;</p><p>The Wall Street Journal reported this week that Gill purchased a large number of GameStop call options before reappearing May 12 on social media. Such options provide the right to buy a stock at a specified price, and bullish investors can use them to place big leveraged bets.</p><p>Gill&#39;s trades and tweets prompted discussions at E*Trade, his brokerage platform, and its parent company, Morgan Stanley, over whether he should be booted off the platform over potentially manipulative trades, the Journal reported.</p><p>GameStop shares are up 81% since Gill returned to X, formerly known as Twitter, with an image of a man leaning forward in a chair. It was his first tweet after a nearly three-year hiatus. More tweets followed, featuring clips from movies and TV shows such as &#34;Seinfeld,&#34; self-referential memes, images of cats, and the occasional GameStop logo layered onto the videos.</p><p>It is a testament to Gill&#39;s fame that such posts nonetheless ignited a rally. During the original meme-stock mania in January 2021, the headband-wearing Gill became an internet celebrity by posting videos on why he felt that GameStop -- a beaten-down, bricks-and-mortar retailer of videogames -- was undervalued. A movement of investors emerged in his wake, seeing Gill as its perceived champion against short-selling hedge-fund managers who bet against GameStop and other stocks. Gill later testified before Congress and became the hero of the 2023 Sony Pictures film &#34; Dumb Money.&#34;</p><p>A lawyer who previously represented Gill declined to comment, and Gill didn&#39;t respond to messages.</p><p>Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based investment-advisory firm that is now defunct, regulatory filings show.</p><p>The SEC has a history of successfully prosecuting fraud cases in pump-and-dump schemes, in which the masterminds of the scheme promote a stock online -- often with false claims -- while quietly selling the stock as soon as it rallies. Gill&#39;s recent actions don&#39;t fall into that framework. None of his posts have been explicit endorsements of investing in GameStop or claims about the company&#39;s financial prospects. It is unclear whether Gill has sold his shares, or whether he is still amassing a giant GameStop stake.</p><p>Gill&#39;s actions don&#39;t appear to be insider trading, either, since he isn&#39;t a GameStop executive with special knowledge of the company&#39;s business.</p><p>Still, for some market observers, Gill&#39;s actions are blatantly abusive.</p><p>&#34;This is obviously market manipulation. I can&#39;t believe we&#39;re even having this conversation,&#34; said Matt Stoller, director of research at the American Economic Liberties Project. &#34;If market-manipulation law doesn&#39;t handle this, then what&#39;s it for?&#34;</p><p>Other market veterans say Gill isn&#39;t doing anything wildly different from a Wall Street fund manager who holds a stock and discusses it on television. Steve Sosnick, chief strategist at Interactive Brokers, compared Gill&#39;s actions to an activist investor who quietly amasses a stake in a company, then reveals it publicly in hopes that the activist&#39;s entry into the stock will send it higher.</p><p>&#34;He&#39;s hardly the first guy to talk his own book,&#34; Sosnick said.</p><p>There are a number of unanswered questions about Gill&#39;s trading. The short seller Andrew Left, who took out a bearish bet against GameStop in recent days, has speculated that Gill could be backed by other investors, citing the huge size of his position in GameStop shares.</p><p>Former SEC Chair Jay Clayton suggested in an interview with the Journal that Gill should publicly answer questions about his trading. Such questions include: Is he working with anyone else? How did Gill, an individual investor, finance his purchases of GameStop shares? Has he hedged any of his bets on GameStop? And what are his ultimate intentions?</p><p>&#34;Absent answers to these questions,&#34; Clayton said, &#34;I&#39;m very uncomfortable for retail investors and for market integrity.&#34;</p></body></html>","collect":0,"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>Keith Gill's GameStop Trades Pose Conundrum for Market Cops</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\">\nKeith Gill's GameStop Trades Pose Conundrum for Market Cops\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-06-06 22:38</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?</p><p>Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.</p><p>For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill&#39;s tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> account on Monday afternoon.</p><p>&#34;What he&#39;s doing is exploiting a gap in the rules,&#34; said Daniel Hawke, a partner at the law firm Arnold &amp; Porter Kaye Scholer and former head of the SEC&#39;s market-abuse unit. &#34;He is using his celebrity and influence to draw people to buy the stock. The rules that exist do not permit the SEC to prosecute that conduct unless there is an element of deception.&#34;</p><p>The Wall Street Journal reported this week that Gill purchased a large number of GameStop call options before reappearing May 12 on social media. Such options provide the right to buy a stock at a specified price, and bullish investors can use them to place big leveraged bets.</p><p>Gill&#39;s trades and tweets prompted discussions at E*Trade, his brokerage platform, and its parent company, Morgan Stanley, over whether he should be booted off the platform over potentially manipulative trades, the Journal reported.</p><p>GameStop shares are up 81% since Gill returned to X, formerly known as Twitter, with an image of a man leaning forward in a chair. It was his first tweet after a nearly three-year hiatus. More tweets followed, featuring clips from movies and TV shows such as &#34;Seinfeld,&#34; self-referential memes, images of cats, and the occasional GameStop logo layered onto the videos.</p><p>It is a testament to Gill&#39;s fame that such posts nonetheless ignited a rally. During the original meme-stock mania in January 2021, the headband-wearing Gill became an internet celebrity by posting videos on why he felt that GameStop -- a beaten-down, bricks-and-mortar retailer of videogames -- was undervalued. A movement of investors emerged in his wake, seeing Gill as its perceived champion against short-selling hedge-fund managers who bet against GameStop and other stocks. Gill later testified before Congress and became the hero of the 2023 Sony Pictures film &#34; Dumb Money.&#34;</p><p>A lawyer who previously represented Gill declined to comment, and Gill didn&#39;t respond to messages.</p><p>Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based investment-advisory firm that is now defunct, regulatory filings show.</p><p>The SEC has a history of successfully prosecuting fraud cases in pump-and-dump schemes, in which the masterminds of the scheme promote a stock online -- often with false claims -- while quietly selling the stock as soon as it rallies. Gill&#39;s recent actions don&#39;t fall into that framework. None of his posts have been explicit endorsements of investing in GameStop or claims about the company&#39;s financial prospects. It is unclear whether Gill has sold his shares, or whether he is still amassing a giant GameStop stake.</p><p>Gill&#39;s actions don&#39;t appear to be insider trading, either, since he isn&#39;t a GameStop executive with special knowledge of the company&#39;s business.</p><p>Still, for some market observers, Gill&#39;s actions are blatantly abusive.</p><p>&#34;This is obviously market manipulation. I can&#39;t believe we&#39;re even having this conversation,&#34; said Matt Stoller, director of research at the American Economic Liberties Project. &#34;If market-manipulation law doesn&#39;t handle this, then what&#39;s it for?&#34;</p><p>Other market veterans say Gill isn&#39;t doing anything wildly different from a Wall Street fund manager who holds a stock and discusses it on television. Steve Sosnick, chief strategist at Interactive Brokers, compared Gill&#39;s actions to an activist investor who quietly amasses a stake in a company, then reveals it publicly in hopes that the activist&#39;s entry into the stock will send it higher.</p><p>&#34;He&#39;s hardly the first guy to talk his own book,&#34; Sosnick said.</p><p>There are a number of unanswered questions about Gill&#39;s trading. The short seller Andrew Left, who took out a bearish bet against GameStop in recent days, has speculated that Gill could be backed by other investors, citing the huge size of his position in GameStop shares.</p><p>Former SEC Chair Jay Clayton suggested in an interview with the Journal that Gill should publicly answer questions about his trading. Such questions include: Is he working with anyone else? How did Gill, an individual investor, finance his purchases of GameStop shares? Has he hedged any of his bets on GameStop? And what are his ultimate intentions?</p><p>&#34;Absent answers to these questions,&#34; Clayton said, &#34;I&#39;m very uncomfortable for retail investors and for market integrity.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4577":"网络游戏","BK4547":"WSB热门概念","BK4588":"碎股","GME":"游戏驿站","BK4076":"电脑与电子产品零售"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2441262795","content_text":"Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation?Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading.For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill's tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his Reddit account on Monday afternoon.\"What he's doing is exploiting a gap in the rules,\" said Daniel Hawke, a partner at the law firm Arnold & Porter Kaye Scholer and former head of the SEC's market-abuse unit. \"He is using his celebrity and influence to draw people to buy the stock. The rules that exist do not permit the SEC to prosecute that conduct unless there is an element of deception.\"The Wall Street Journal reported this week that Gill purchased a large number of GameStop call options before reappearing May 12 on social media. Such options provide the right to buy a stock at a specified price, and bullish investors can use them to place big leveraged bets.Gill's trades and tweets prompted discussions at E*Trade, his brokerage platform, and its parent company, Morgan Stanley, over whether he should be booted off the platform over potentially manipulative trades, the Journal reported.GameStop shares are up 81% since Gill returned to X, formerly known as Twitter, with an image of a man leaning forward in a chair. It was his first tweet after a nearly three-year hiatus. More tweets followed, featuring clips from movies and TV shows such as \"Seinfeld,\" self-referential memes, images of cats, and the occasional GameStop logo layered onto the videos.It is a testament to Gill's fame that such posts nonetheless ignited a rally. During the original meme-stock mania in January 2021, the headband-wearing Gill became an internet celebrity by posting videos on why he felt that GameStop -- a beaten-down, bricks-and-mortar retailer of videogames -- was undervalued. A movement of investors emerged in his wake, seeing Gill as its perceived champion against short-selling hedge-fund managers who bet against GameStop and other stocks. Gill later testified before Congress and became the hero of the 2023 Sony Pictures film \" Dumb Money.\"A lawyer who previously represented Gill declined to comment, and Gill didn't respond to messages.Gill, a former registered stockbroker, is likely to have a solid understanding of regulations governing stock trading. He holds several securities-industry licenses, and a decade ago he was the chief compliance officer at Lucidia, a New Hampshire-based investment-advisory firm that is now defunct, regulatory filings show.The SEC has a history of successfully prosecuting fraud cases in pump-and-dump schemes, in which the masterminds of the scheme promote a stock online -- often with false claims -- while quietly selling the stock as soon as it rallies. Gill's recent actions don't fall into that framework. None of his posts have been explicit endorsements of investing in GameStop or claims about the company's financial prospects. It is unclear whether Gill has sold his shares, or whether he is still amassing a giant GameStop stake.Gill's actions don't appear to be insider trading, either, since he isn't a GameStop executive with special knowledge of the company's business.Still, for some market observers, Gill's actions are blatantly abusive.\"This is obviously market manipulation. I can't believe we're even having this conversation,\" said Matt Stoller, director of research at the American Economic Liberties Project. \"If market-manipulation law doesn't handle this, then what's it for?\"Other market veterans say Gill isn't doing anything wildly different from a Wall Street fund manager who holds a stock and discusses it on television. Steve Sosnick, chief strategist at Interactive Brokers, compared Gill's actions to an activist investor who quietly amasses a stake in a company, then reveals it publicly in hopes that the activist's entry into the stock will send it higher.\"He's hardly the first guy to talk his own book,\" Sosnick said.There are a number of unanswered questions about Gill's trading. The short seller Andrew Left, who took out a bearish bet against GameStop in recent days, has speculated that Gill could be backed by other investors, citing the huge size of his position in GameStop shares.Former SEC Chair Jay Clayton suggested in an interview with the Journal that Gill should publicly answer questions about his trading. Such questions include: Is he working with anyone else? How did Gill, an individual investor, finance his purchases of GameStop shares? Has he hedged any of his bets on GameStop? And what are his ultimate intentions?\"Absent answers to these questions,\" Clayton said, \"I'm very uncomfortable for retail investors and for market integrity.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":2,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":312172856303656,"gmtCreate":1717239842324,"gmtModify":1717249059595,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"I agree with Victor,&nbsp; shorts never closed.","listText":"I agree with Victor,&nbsp; shorts never closed.","text":"I agree with Victor, shorts never closed.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/312172856303656","repostId":"2439154489","repostType":2,"repost":{"id":"2439154489","pubTimestamp":1717224410,"share":"https://www.laohu8.com/m/news/2439154489?lang=&edition=full","pubTime":"2024-06-01 14:46","market":"fut","language":"en","title":"GameStop Stock: No Fundamentals Behind The Recent Rally","url":"https://stock-news.laohu8.com/highlight/detail?id=2439154489","media":"seekingalpha","summary":"Let me explain here. GameStop's fundamentals First, let us talk about the company's earnings results recorded since my last coverage. Overall, we can safely say that the company's results have improved since then. This is both true of its quarterly sales and net income. The data is given in USD millions. GameStop's quarterly revenues and net income   Seeking Alpha   Prepared by the author based on Seeking Alpha's data   Prepared by the author based on Seeking Alpha's dataHowever, if we look at the company's annual sales and net profit histories, we can see that the revenues reported in February 2024 have declined somewhat compared to the same period a year ago. The data is given in USD millions.         January 2023 February 2024   Revenues 5927,2 5272,8   Net inco","content":"<html><head></head><body><ul style=\"\"><li><p>GameStop stock has rallied but its fundamentals remain poor.</p></li><li><p>The recent rally was driven by market speculation, not fundamental factors.</p></li><li><p>GameStop&#39;s sales have been declining and its profitability metrics are low.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/27fb32e4d0ad6e4030f25a753936fdcf\" tg-width=\"750\" tg-height=\"500\"/></p><p>jetcityimage</p><p>GameStop (NYSE:GME) stock has rallied incredibly the past month. The company&#39;s fundamentals, however, are as poor as they used to be a month ago. This is an update of my earlier work on GameStop following GME stock&#39;s miraculous rally. I will explain why buying the stock immediately after this rally would be pure speculation and why the company&#39;s stock fundamentals are poor.</p><h2 id=\"id_2879136696\">Recap of my previous GME analysis</h2><p>In my previous analysis, I covered GameStop&#39;s earnings. The analysis was published on 7 September 2023 and covered 2Q 2023 earnings. At the time, GameStop&#39;s quarterly earnings showed a decrease in net loss and a slight fall in revenues. I also pointed to the company&#39;s poor sales and profit histories. GME stock was not undervalued at the time and carried substantial downside risks. At the time, I also said there was potential for strategic changes or market speculation. No strategic changes have happened to the business so far. However, the recent market speculation had absolutely no fundamental factors behind it. Right now, the stock price is off its highs. And it is quite close to the levels seen when my September article about GameStop was published. One GME share was worth $18.89.</p><h2 id=\"id_3651835170\">GME rally</h2><p>GameStop (GME) skyrocketed from less than $15 per share to $50 a share, reaching levels unseen since August 2022. The stock price surged after Keith Gill, the trader at the center of the meme-stock craze, made a post in social media.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/023afa5e44a90363f74512aab2e06b9b\" tg-width=\"635\" tg-height=\"424\"/></p><p>Data by YCharts</p><p>GameStop’s (GME) share price had surged almost threefold from the end of April through mid-May.</p><p>Shares of the video-game seller soared after Keith Gill&#39;s TheRoaringKitty account tweeted for the first time in almost three years. About three years ago, Gill posted an analysis of GameStop as an undervalued company. This post was said to provoke GameStop’s (GME) rally and also a massive short-squeeze, making hedge funds record losses in January 2021.</p><p>But what has happened to the company itself, not its stock, since my last coverage? Let me explain here.</p><h2 id=\"id_155227382\">GameStop&#39;s fundamentals</h2><p>First, let us talk about the company&#39;s earnings results recorded since my last coverage.</p><p>Overall, we can safely say that the company&#39;s results have improved since then. This is both true of its quarterly sales and net income.</p><p>The data is given in USD millions.</p><p><strong>GameStop&#39;s quarterly revenues and net income</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/85081c0a750c62d6d12ec454734e07de\" tg-width=\"640\" tg-height=\"103\"/></p><p>Seeking Alpha</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44e6fdb0febf6082761500b47264ece3\" tg-width=\"640\" tg-height=\"385\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c8bab6a6daf56c8b119cb761767c00c4\" tg-width=\"612\" tg-height=\"343\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p>However, if we look at the company&#39;s annual sales and net profit histories, we can see that the revenues reported in February 2024 have declined somewhat compared to the same period a year ago.</p><p>The data is given in USD millions.</p><table style=\"border-collapse:collapse;\"><colgroup><col/><col/></colgroup><tbody><tr><td style=\"text-align:left;\"><p></p></td><td style=\"text-align:left;\"><p>January 2023</p></td><td style=\"text-align:left;\"><p>February 2024</p></td></tr><tr><td style=\"text-align:left;\"><p>Revenues</p></td><td style=\"text-align:left;\"><p>5927,2</p></td><td style=\"text-align:left;\"><p>5272,8</p></td></tr><tr><td style=\"text-align:left;\"><p>Net income</p></td><td style=\"text-align:left;\"><p>-313,1</p></td><td style=\"text-align:left;\"><p>6,7</p></td></tr></tbody></table><p><em>Source: Prepared by the author based on Seeking Alpha&#39;s data</em></p><p>At the same time, the net loss has declined over the same period. In fact, the company even managed to record a positive net result of $6.7 million.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/bcf8aa48783d10b757981e50cd3dedeb\" tg-width=\"531\" tg-height=\"334\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4d7ea0c38b7663d7ed8618866e207503\" tg-width=\"640\" tg-height=\"385\"/></p><p>Prepared by the author based on Seeking Alpha&#39;s data</p><p>This means that the company&#39;s efficiency has increased. But how did GameStop&#39;s management achieve this?</p><p>Well, as we can see from an excerpt from GME&#39;s income statement below, the cost of sales has decreased. The cost of sales is normally the direct cost associated with the goods sold. But most of the cost decline was due to a plunge in the company&#39;s general and administrative costs.</p><p>The declining cost of sales, as well as lower general and administrative costs, can be attributed to the company closing a substantial number of its stores.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8b65d2f97118facec05c1668e5ac3d43\" tg-width=\"640\" tg-height=\"555\"/></p><p>Seeking Alpha</p><p>GameStop ended 2023 with 2,915 operational locations in the US, a decline of 34 stores compared to the 2,949 it had operated a year earlier. As concerns to its operations abroad, GME shut down 210 international stores, decreasing their count from 1,464 to 1,254. The closure of unprofitable stores, however, did not only lead to a drop in costs but also to a decrease in sales revenues.</p><p>For the 4Q 2023 fiscal year, GameStop reported sales of $1.79 billion. This was a drop of 19.4% versus $2.23 billion for the same period of the 2022 fiscal year. This weakness, however, affected all of GameStop&#39;s departments. Hardware and accessories sales, for example, decreased from $1.24 billion to $1.09 billion. Software sales dropped even more, declining by 30.6% from $670.4 million to $465.3 million. Collectibles sales, meanwhile, decreased from $313.2 million to $233.7 million.</p><p>The most worrying fact is that the 4Q of 2023 included the holiday season, when many people rushed to buy Christmas presents. Video games sales should have also increased during this time period. So, this should have pushed GameStop&#39;s revenues up rather than down.</p><p>Interestingly, total video game sales in the US reached $57.2 billion in 2023, a rise from $56.6 billion in 2022. Video game content spending increased to $48.0 billion in 2023 compared to $47.5 billion for the previous year, thanks to a 13% rise in digital download spending across console platforms and an 11% rise in digital premium download segments on PC, cloud and non-console VR platforms. Hardware sales remained almost unchanged at $6.6 billion, and accessory sales increased by 4% ($2.6 billion versus $2.5 billion). But GameStop&#39;s sales have decreased for the same time period, despite the fact the industry did well, which should be worrying for GameStop&#39;s investors.</p><h2 id=\"id_1914250565\">GameStop&#39;s financial fundamentals</h2><table style=\"border-collapse:collapse;\"><tbody><tr><td style=\"text-align:left;\"><p>Indicator’s name</p></td><td style=\"text-align:left;\"><p>GameStop’s indicator</p></td><td style=\"text-align:left;\"><p>Average indicator for the US (based on FullRatio&#39;s data)</p></td></tr><tr><td style=\"text-align:left;\"><p>Current ratio</p></td><td style=\"text-align:left;\"><p>2,11</p></td><td style=\"text-align:left;\"><p>1,5 - 3,0</p></td></tr><tr><td style=\"text-align:left;\"><p>Debt/equity ratio</p></td><td style=\"text-align:left;\"><p>1,02</p></td><td style=\"text-align:left;\"><p>0,8</p></td></tr><tr><td style=\"text-align:left;\"><p>ROE</p></td><td style=\"text-align:left;\"><p>0,5%</p></td><td style=\"text-align:left;\"><p>13,84%</p></td></tr><tr><td style=\"text-align:left;\"><p>Cash flow from operations/Total debt</p></td><td style=\"text-align:left;\"><p>(0,15)</p></td><td style=\"text-align:left;\"><p>1 or above</p></td></tr></tbody></table><p><em>Source: Prepared by the author based on Seeking Alpha&#39;s and FullRatio&#39;s data</em></p><p>Overall, we can say that most of GameStop&#39;s key financial indicators are in line with US averages. Moreover, GameStop&#39;s net debt (total liabilities—cash and equivalents) is just $448.7 million, quite low for a company with annual sales of $5272.8 million. As many contributors here on Seeking Alpha pointed out, the company has ample amounts of cash. According to the last annual report, its cash and cash equivalents were $921.7 million, quite reasonable but a decline from $1271 million in 2021 and $1139 million in 2022.</p><p>The most problematic indicators of GME are its profitability metrics, including its return on equity (ROE), which is extremely low thanks to GME&#39;s net profit of $6.7 million. Its cash flow from operations was also low. As I have mentioned above, that is because of the company&#39;s falling sales. Even the cost cuts did not help.</p><h2 id=\"id_2494087135\">GME valuations</h2><p>GameStop is not undervalued right now, either.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/79295f171891fe4c50db0a429df91725\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>Obviously, the profitability margins signal just that. For example, GME&#39;s price-to-earnings (P/E) ratio is extremely high. However, this is explainable because GME has recorded its first profit, albeit very low, in several years&#39; time.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6513b3b9905e2bb6ca0890e853f4f6d3\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>But other metrics, including the EV-to-EBITDA and price-to-free cash flow ratios, signal just that. Some businesses face high depreciation and amortization expenses. Some businesses are forced to service very high levels of debt. That is why such companies have low or even negative profit margins. But this is not the case with GME. It simply does not get enough money from sales. So, its EBITDA and free cash flows are also low.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44da11169e8daa2226564533b2e1d439\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>Finally, GameStop&#39;s price-to-book (P/B) ratio is quite high as well. The average P/B of S&amp;P 500 companies is equivalent to 4,312. Among the S&amp;P 500 companies are overvalued high-tech corporations and very profitable businesses. So, it is a high indicator for a company like GameStop.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/28b978fd8291cddbdcd7b09b6f0f501b\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p>Although GME is trading below the levels seen a month or so ago, the stock is still not undervalued according to the key valuation ratios.</p><h2 id=\"id_2386966737\">Risks to my thesis</h2><p>I do not personally see many objective reasons for the stock&#39;s justified rally. Of course, there is a <em>possibility</em> for the management to structurally reform the business. However, GameStop has been recording falling sales for many years already. And there was time for the management to change this brick-and-mortar game seller to a more innovative company. But not much has been done, indeed.</p><p>On the positive side, I can add that the company got &#34;leaner and fitter&#34; by cutting the cost of sales and general and administrative costs. GME also has a lot of cash and quite a low net debt. But the company&#39;s sales have been falling for a while. So, the positive effect was quite limited. If the sales keep falling further, the cash reserves will eventually be over.</p><p>The biggest bullish factor for GME is market speculation, something that happened a month ago or in January 2021. However, such a speculative stock price surge is impossible to predict.</p><h2 id=\"id_2499721499\">Conclusion</h2><p>Although GameStop has managed to cut its costs, its sales are not doing well. In spite of the not-so-easy situation for the business, the company&#39;s stock is quite expensive, according to the ratio analysis. The effect from the recent rally is not quite over. It is possible that the stock will eventually surge in value. But I do not personally see many fundamental reasons for the stock&#39;s appreciation. My rating remains unchanged. It is &#34;Hold&#39;.</p></body></html>","source":"seekingalpha","collect":0,"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>GameStop Stock: No Fundamentals Behind The Recent Rally</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\">\nGameStop Stock: No Fundamentals Behind The Recent Rally\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-01 14:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4696739-gamestop-stock-no-fundamentals-behind-the-recent-rally><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GameStop stock has rallied but its fundamentals remain poor.The recent rally was driven by market speculation, not fundamental factors.GameStop's sales have been declining and its profitability ...</p>\n\n<a href=\"https://seekingalpha.com/article/4696739-gamestop-stock-no-fundamentals-behind-the-recent-rally\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","BK4577":"网络游戏","GME":"游戏驿站","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","BK4588":"碎股"},"source_url":"https://seekingalpha.com/article/4696739-gamestop-stock-no-fundamentals-behind-the-recent-rally","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2439154489","content_text":"GameStop stock has rallied but its fundamentals remain poor.The recent rally was driven by market speculation, not fundamental factors.GameStop's sales have been declining and its profitability metrics are low.jetcityimageGameStop (NYSE:GME) stock has rallied incredibly the past month. The company's fundamentals, however, are as poor as they used to be a month ago. This is an update of my earlier work on GameStop following GME stock's miraculous rally. I will explain why buying the stock immediately after this rally would be pure speculation and why the company's stock fundamentals are poor.Recap of my previous GME analysisIn my previous analysis, I covered GameStop's earnings. The analysis was published on 7 September 2023 and covered 2Q 2023 earnings. At the time, GameStop's quarterly earnings showed a decrease in net loss and a slight fall in revenues. I also pointed to the company's poor sales and profit histories. GME stock was not undervalued at the time and carried substantial downside risks. At the time, I also said there was potential for strategic changes or market speculation. No strategic changes have happened to the business so far. However, the recent market speculation had absolutely no fundamental factors behind it. Right now, the stock price is off its highs. And it is quite close to the levels seen when my September article about GameStop was published. One GME share was worth $18.89.GME rallyGameStop (GME) skyrocketed from less than $15 per share to $50 a share, reaching levels unseen since August 2022. The stock price surged after Keith Gill, the trader at the center of the meme-stock craze, made a post in social media.Data by YChartsGameStop’s (GME) share price had surged almost threefold from the end of April through mid-May.Shares of the video-game seller soared after Keith Gill's TheRoaringKitty account tweeted for the first time in almost three years. About three years ago, Gill posted an analysis of GameStop as an undervalued company. This post was said to provoke GameStop’s (GME) rally and also a massive short-squeeze, making hedge funds record losses in January 2021.But what has happened to the company itself, not its stock, since my last coverage? Let me explain here.GameStop's fundamentalsFirst, let us talk about the company's earnings results recorded since my last coverage.Overall, we can safely say that the company's results have improved since then. This is both true of its quarterly sales and net income.The data is given in USD millions.GameStop's quarterly revenues and net incomeSeeking AlphaPrepared by the author based on Seeking Alpha's dataPrepared by the author based on Seeking Alpha's dataHowever, if we look at the company's annual sales and net profit histories, we can see that the revenues reported in February 2024 have declined somewhat compared to the same period a year ago.The data is given in USD millions.January 2023February 2024Revenues5927,25272,8Net income-313,16,7Source: Prepared by the author based on Seeking Alpha's dataAt the same time, the net loss has declined over the same period. In fact, the company even managed to record a positive net result of $6.7 million.Prepared by the author based on Seeking Alpha's dataPrepared by the author based on Seeking Alpha's dataThis means that the company's efficiency has increased. But how did GameStop's management achieve this?Well, as we can see from an excerpt from GME's income statement below, the cost of sales has decreased. The cost of sales is normally the direct cost associated with the goods sold. But most of the cost decline was due to a plunge in the company's general and administrative costs.The declining cost of sales, as well as lower general and administrative costs, can be attributed to the company closing a substantial number of its stores.Seeking AlphaGameStop ended 2023 with 2,915 operational locations in the US, a decline of 34 stores compared to the 2,949 it had operated a year earlier. As concerns to its operations abroad, GME shut down 210 international stores, decreasing their count from 1,464 to 1,254. The closure of unprofitable stores, however, did not only lead to a drop in costs but also to a decrease in sales revenues.For the 4Q 2023 fiscal year, GameStop reported sales of $1.79 billion. This was a drop of 19.4% versus $2.23 billion for the same period of the 2022 fiscal year. This weakness, however, affected all of GameStop's departments. Hardware and accessories sales, for example, decreased from $1.24 billion to $1.09 billion. Software sales dropped even more, declining by 30.6% from $670.4 million to $465.3 million. Collectibles sales, meanwhile, decreased from $313.2 million to $233.7 million.The most worrying fact is that the 4Q of 2023 included the holiday season, when many people rushed to buy Christmas presents. Video games sales should have also increased during this time period. So, this should have pushed GameStop's revenues up rather than down.Interestingly, total video game sales in the US reached $57.2 billion in 2023, a rise from $56.6 billion in 2022. Video game content spending increased to $48.0 billion in 2023 compared to $47.5 billion for the previous year, thanks to a 13% rise in digital download spending across console platforms and an 11% rise in digital premium download segments on PC, cloud and non-console VR platforms. Hardware sales remained almost unchanged at $6.6 billion, and accessory sales increased by 4% ($2.6 billion versus $2.5 billion). But GameStop's sales have decreased for the same time period, despite the fact the industry did well, which should be worrying for GameStop's investors.GameStop's financial fundamentalsIndicator’s nameGameStop’s indicatorAverage indicator for the US (based on FullRatio's data)Current ratio2,111,5 - 3,0Debt/equity ratio1,020,8ROE0,5%13,84%Cash flow from operations/Total debt(0,15)1 or aboveSource: Prepared by the author based on Seeking Alpha's and FullRatio's dataOverall, we can say that most of GameStop's key financial indicators are in line with US averages. Moreover, GameStop's net debt (total liabilities—cash and equivalents) is just $448.7 million, quite low for a company with annual sales of $5272.8 million. As many contributors here on Seeking Alpha pointed out, the company has ample amounts of cash. According to the last annual report, its cash and cash equivalents were $921.7 million, quite reasonable but a decline from $1271 million in 2021 and $1139 million in 2022.The most problematic indicators of GME are its profitability metrics, including its return on equity (ROE), which is extremely low thanks to GME's net profit of $6.7 million. Its cash flow from operations was also low. As I have mentioned above, that is because of the company's falling sales. Even the cost cuts did not help.GME valuationsGameStop is not undervalued right now, either.Data by YChartsObviously, the profitability margins signal just that. For example, GME's price-to-earnings (P/E) ratio is extremely high. However, this is explainable because GME has recorded its first profit, albeit very low, in several years' time.Data by YChartsBut other metrics, including the EV-to-EBITDA and price-to-free cash flow ratios, signal just that. Some businesses face high depreciation and amortization expenses. Some businesses are forced to service very high levels of debt. That is why such companies have low or even negative profit margins. But this is not the case with GME. It simply does not get enough money from sales. So, its EBITDA and free cash flows are also low.Data by YChartsFinally, GameStop's price-to-book (P/B) ratio is quite high as well. The average P/B of S&P 500 companies is equivalent to 4,312. Among the S&P 500 companies are overvalued high-tech corporations and very profitable businesses. So, it is a high indicator for a company like GameStop.Data by YChartsAlthough GME is trading below the levels seen a month or so ago, the stock is still not undervalued according to the key valuation ratios.Risks to my thesisI do not personally see many objective reasons for the stock's justified rally. Of course, there is a possibility for the management to structurally reform the business. However, GameStop has been recording falling sales for many years already. And there was time for the management to change this brick-and-mortar game seller to a more innovative company. But not much has been done, indeed.On the positive side, I can add that the company got \"leaner and fitter\" by cutting the cost of sales and general and administrative costs. GME also has a lot of cash and quite a low net debt. But the company's sales have been falling for a while. So, the positive effect was quite limited. If the sales keep falling further, the cash reserves will eventually be over.The biggest bullish factor for GME is market speculation, something that happened a month ago or in January 2021. However, such a speculative stock price surge is impossible to predict.ConclusionAlthough GameStop has managed to cut its costs, its sales are not doing well. In spite of the not-so-easy situation for the business, the company's stock is quite expensive, according to the ratio analysis. The effect from the recent rally is not quite over. It is possible that the stock will eventually surge in value. But I do not personally see many fundamental reasons for the stock's appreciation. My rating remains unchanged. It is \"Hold'.","news_type":1},"isVote":1,"tweetType":1,"viewCount":21,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":313753903861784,"gmtCreate":1717638481506,"gmtModify":1717638485503,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"This play is not about business fundamentals although company has minimal debt,&nbsp; was profitable last quarter,&nbsp; has 2bn in cash as Victor said shorts never closed.... boom","listText":"This play is not about business fundamentals although company has minimal debt,&nbsp; was profitable last quarter,&nbsp; has 2bn in cash as Victor said shorts never closed.... boom","text":"This play is not about business fundamentals although company has minimal debt, was profitable last quarter, has 2bn in cash as Victor said shorts never closed.... boom","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/313753903861784","repostId":"2441778574","repostType":2,"repost":{"id":"2441778574","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1717630865,"share":"https://www.laohu8.com/m/news/2441778574?lang=&edition=full","pubTime":"2024-06-06 07:41","market":"sh","language":"en","title":"GameStop Shares Resume Rally, Seal Highest Close in 3 Weeks","url":"https://stock-news.laohu8.com/highlight/detail?id=2441778574","media":"Dow Jones","summary":"The videogame retailer's shares are in the spotlight once again with the return of influential trader Keith Gill, also known as Roaring Kitty. Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday's session down 5.4%.The videogame retailer's shares  finished trading at $31.57, their highest close since May 15, 2024, when they ended that day's session at $39.55. GameStop's stock is now up four of the last five trading sessions.Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. , as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.Shares of GameStop surged again on Monday after a Reddit post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screens","content":"<html><head></head><body><p>Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday&#39;s session down 5.4%.</p><p>The videogame retailer&#39;s shares <a href=\"https://laohu8.com/S/GME\">$(GME)$</a> finished trading at $31.57, their highest close since May 15, 2024, when they ended that day&#39;s session at $39.55. GameStop&#39;s stock is now up four of the last five trading sessions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/96996b2cc8d52b3f5fac817c59ee6d12\" tg-width=\"805\" tg-height=\"625\"/></p><p>Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.</p><p>AMC shares closed up 7.5% Wednesday after ending Tuesday&#39;s session down 0.4%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a5e25304febd9208d080a8f856634448\" tg-width=\"804\" tg-height=\"625\"/></p><p>Shares of GameStop surged again on Monday after a <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screenshot posted Monday showed Gill holding his position.</p><p>MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green &#34;reverse&#34; card from the card game Uno.</p><p>On Tuesday, a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch that the state&#39;s securities division is &#34;looking into&#34; Gill&#39;s trading activities.</p><p>Citing people familiar with the matter, the Wall Street Journal reported this week that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Journal.</p><p>Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC&#39;s reported trading review.</p><p>GameStop shares are up 80.1% in 2024, while AMC&#39;s stock is down 15.9% and the S&amp;P 500 index SPX is up 12.3%.</p><p>Gordon Gottsegen contributed.</p></body></html>","collect":0,"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>GameStop Shares Resume Rally, Seal Highest Close in 3 Weeks</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\">\nGameStop Shares Resume Rally, Seal Highest Close in 3 Weeks\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-06-06 07:41</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday&#39;s session down 5.4%.</p><p>The videogame retailer&#39;s shares <a href=\"https://laohu8.com/S/GME\">$(GME)$</a> finished trading at $31.57, their highest close since May 15, 2024, when they ended that day&#39;s session at $39.55. GameStop&#39;s stock is now up four of the last five trading sessions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/96996b2cc8d52b3f5fac817c59ee6d12\" tg-width=\"805\" tg-height=\"625\"/></p><p>Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.</p><p>AMC shares closed up 7.5% Wednesday after ending Tuesday&#39;s session down 0.4%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a5e25304febd9208d080a8f856634448\" tg-width=\"804\" tg-height=\"625\"/></p><p>Shares of GameStop surged again on Monday after a <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screenshot posted Monday showed Gill holding his position.</p><p>MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green &#34;reverse&#34; card from the card game Uno.</p><p>On Tuesday, a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch that the state&#39;s securities division is &#34;looking into&#34; Gill&#39;s trading activities.</p><p>Citing people familiar with the matter, the Wall Street Journal reported this week that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Journal.</p><p>Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC&#39;s reported trading review.</p><p>GameStop shares are up 80.1% in 2024, while AMC&#39;s stock is down 15.9% and the S&amp;P 500 index SPX is up 12.3%.</p><p>Gordon Gottsegen contributed.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","AMC":"AMC院线","BK4108":"电影和娱乐","BK4577":"网络游戏","BK4585":"ETF&股票定投概念","BK4547":"WSB热门概念","BK4588":"碎股","GME":"游戏驿站"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2441778574","content_text":"Shares of GameStop Corp. resumed their rally Wednesday, with the stock climbing 19.1% after ending Tuesday's session down 5.4%.The videogame retailer's shares $(GME)$ finished trading at $31.57, their highest close since May 15, 2024, when they ended that day's session at $39.55. GameStop's stock is now up four of the last five trading sessions.Influential trader Keith Gill, also known as Roaring Kitty, last month sparked a new meme-stock rally that sent skyrocketing shares of GameStop and AMC Entertainment Holdings Inc. $(AMC)$, as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.AMC shares closed up 7.5% Wednesday after ending Tuesday's session down 0.4%.Shares of GameStop surged again on Monday after a Reddit post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. A subsequent screenshot posted Monday showed Gill holding his position.MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green \"reverse\" card from the card game Uno.On Tuesday, a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch that the state's securities division is \"looking into\" Gill's trading activities.Citing people familiar with the matter, the Wall Street Journal reported this week that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Journal.Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC's reported trading review.GameStop shares are up 80.1% in 2024, while AMC's stock is down 15.9% and the S&P 500 index SPX is up 12.3%.Gordon Gottsegen contributed.","news_type":1},"isVote":1,"tweetType":1,"viewCount":56,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":300409727553672,"gmtCreate":1714361641223,"gmtModify":1714368233379,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"As Victor said shorts never closed.... boom","listText":"As Victor said shorts never closed.... boom","text":"As Victor said shorts never closed.... boom","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/300409727553672","repostId":"2430080557","repostType":2,"repost":{"id":"2430080557","pubTimestamp":1714359516,"share":"https://www.laohu8.com/m/news/2430080557?lang=&edition=full","pubTime":"2024-04-29 10:58","market":"us","language":"en","title":"GameStop: Approaching An Optimistic Fair Value But Not There Yet","url":"https://stock-news.laohu8.com/highlight/detail?id=2430080557","media":"Seeking Alpha","summary":"I would steer clear of the GameStop stock – in every sense – both long and short.The fact that I have to mention this is a consequence for all serious market participants and potentially shows the dam","content":"<html><head></head><body><ul style=\"\"><li><p>I would steer clear of the GameStop stock – in every sense – both long and short.</p></li><li><p>The fact that I have to mention this is a consequence for all serious market participants and potentially shows the damage to market transparency and efficiency to this day.</p></li><li><p>GameStop does have some value, but it still lies well below its current share price. &#34;Healthy shrinkage&#34; leads back to profitability.</p></li><li><p>Current valuation implies reduced contraction whilst significantly expanding margins.</p></li><li><p>I have already covered other representatives of the gaming industry, including Nintendo and Take-Two Interactive.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3618396cc4f4e4fac0a49f89df65762a\" alt=\"Michael M. Santiago\" title=\"Michael M. Santiago\" tg-width=\"750\" tg-height=\"500\"/><span>Michael M. Santiago</span></p><h2 id=\"id_3934977145\">A Three-Year Long Ride Down Towards Fair Value</h2><p>At about 15 USD a share two months ago, my attention was drawn back to GameStop (NYSE:GME) three years after its dramatic showdown between retail traders and hedge funds, which led to its erratic price movements. I suggested that in a highly optimistic scenario, the downside could at least drop to 10 USD, a level we have already witnessed. Now, given GME&#39;s latest quarterly results, I conducted a more in-depth analysis of its current fair value. These are the key points of my thesis:</p><ul style=\"\"><li><p>I argue that although GME has already traversed the majority of its remarkably extended journey down from excessive peaks toward fair value, it still hasn&#39;t reached its destination.</p></li><li><p>The business model simply continues to offer little in terms of attractiveness.</p></li><li><p>I compare the macroeconomic, monetary, and fiscal landscape during the height of the excesses with how fundamentally different it appears today.</p></li><li><p>Most importantly, I conduct a simplified yet fundamentally-based valuation for GME, based on the most recent numbers.</p></li></ul><h2 id=\"id_2362039122\">Partially Charming, But Not A Sustainable Business Model</h2><p>Looking into GME&#39;s operational revenue segments over time, it is easily observable that their formerly high-margin segment of <em>reselling second-hand gaming products</em> has been in a consistent decline since 2012. This is not very surprising and points to a fundamental problem that is still valid today. Due to digital sales, often directly marketed through the gaming platforms&#39; in-house stores, the market for pre-owned video games should further decline significantly. And here we are not even discussing outsourcing computing power to cloud gaming, which could potentially render hardware obsolete in the future. With that, I also anticipate the existing games and hardware to consistently decrease in market value, despite some rare pieces that might gain vintage charm and value one day. Moreover, I see little rationale for someone to sell their old hardware cheaply to GameStop, which aims to profit from it, when it is easier than ever to sell through various reselling platforms privately, without intermediaries. &#34;Our largest vendors are Sony, Nintendo, and Microsoft, which collectively accounted for a majority of our new product purchases in fiscal 2023&#34;, an unsurprising fact according to GME&#39;s 10-K filings that still leaves a very bitter taste, as it clearly indicates GameStop&#39;s lack of market power or, conversely, the high power of its suppliers.</p><p>On the other hand, I believe that physical <em>collectibles,</em> as a counterpart to digitalization, might remain in demand among gaming and franchise fans. But &#34;Collectibles also included our digital asset wallet and NFT marketplace activities in fiscal 2023; however, both activities were wound down in the fourth quarter of 2023,&#34; it says in GME&#39;s 10-K filings. Issues like these, on the other hand, make me less optimistic about seeing a serious long-term strategy in GameStop. They jumped onto the NFT bandwagon and shut it down shortly thereafter. In this context, I would like to point out another risk that GME itself has identified in its 10-K filings: High turnover in key leadership positions could lead to a lack of clarity in GameStop&#39;s strategic direction. Coupled with high turnover rates in the retail and fulfillment sectors, this poses a risk to GameStop&#39;s ability to attract and retain skilled personnel, including key executives, potentially affecting the company&#39;s sustainable business development.</p><p>Looking at the formerly reported <em>segment &#34;digital&#34;,</em> it is evident that GameStop has never been able to significantly grow in this area. From my perspective, GameStop is therefore a nostalgic remnant of a relatively analog world, whose preservation would personally delight me, but which today does not show any promising prospects for a future business model.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b01ca0a173ba863026e2a06357b8d717\" alt=\"GME revenue segments (Aktienfinder.net)\" title=\"GME revenue segments (Aktienfinder.net)\" tg-width=\"640\" tg-height=\"141\"/><span>GME revenue segments (Aktienfinder.net)</span></p><h2 id=\"id_2366121430\">Macroeconomic Enablers of a Rollercoaster Ride</h2><p>Some may still view GME differently than I do on a fundamental level, either through trading strategies or idealistic movements. But despite my support for democratizing the stock market, I do not at all see the GameStop events as beneficial to the cause. The &#34;diamond hands&#34; movement, while aiming to challenge the status quo, resulted in significant losses for many, with GME now trading almost 90% below its peak. Today&#39;s trading volume is no more but a shadow of its 2021 frenzy, underscoring the transient nature of such movements. This episode, marred by manipulative tactics on both sides, underscores a power struggle without any lasting victors.</p><p>Certainly, herd-psychological and technical market mechanisms like Short Squeezes were at play. However, as a fundamental analyst, I am also interested in the broader context that may have facilitated these occurrences. One of the primary sources of &#34;free money&#34; enabling investors to engage in such behavior was monetary policy, with Fed assets doubling and interest rates being slashed in response to the pandemic. With this money, for instance, the US government was able to distribute funds like watering gardens via stimulus checks to the population. From March 2020 to March 2021, $814 billion flowed in three rounds, averaging 159 million payments per round. This amounted to a staggering 4% compared to the 2021 US Real GDP, or more than $5,000 per recipient.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5710225dbdb34a6a0099999394a08a3e\" alt=\"multpl.com, FRED, investing.com\" title=\"multpl.com, FRED, investing.com\" tg-width=\"640\" tg-height=\"382\"/><span>multpl.com, FRED, investing.com</span></p><p>As we are all aware, the current environment is markedly different, with the Fed having reduced its balance sheet and having substantially raised interest rates since the outset of 2022. Therefore, I suspect that stimulus checks played a significant role in enabling retail investors to engage in such behavior. This is clearly not something to speculate about occurring again in today&#39;s environment.</p><h2 id=\"id_48820230\">Accelerated Contraction During Holiday Season</h2><p>For a long-term retrospective to 2017, I reassigned the old segments to the new structure at my discretion. Notably, the software segment shrunk annually by -14% over eight years. Due to the more stable performance of the other two segments, the total annual revenue decline during this period was -8%. After having established the new segment structure as of 2020, the shrinkage of the software segment was -20% annually and -7% at the corporate level. The dynamics of this contraction became even more pronounced in the last fiscal year compared to long-term averages, with an acceleration to -11% in total revenue, and the quarter-over-year comparison showed the most significant contraction, with -19% in total revenue or -24% in the software segment, despite this being the seasonally strongest quarter with Christmas holiday sales. &#34;Our business (…) is seasonal, with the major portion of sales and operating profit realized during the fourth quarter of the fiscal year (…). (…) During fiscal 2023 and 2022, we generated approximately 34% and 38%, respectively, of our sales during the fourth quarter.&#34; (GME 10-K Filings)</p><p>On a positive note, operational margins appear to have bottomed out two years ago and have since returned to breakeven on an annual basis, with a 3% net margin in the holiday quarter. Next, I optimistically assume that through a &#34;healthy shrinkage&#34;, GameStop will nearly reach old profitability levels with a 6% operational margin.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/1bbcc494fb61e32cfbd74de08f057b44\" alt=\"Author | Data: Aktienfinder.net\" title=\"Author | Data: Aktienfinder.net\" tg-width=\"640\" tg-height=\"224\"/><span>Author | Data: Aktienfinder.net</span></p><h2 id=\"id_1203239824\">Investment Behavior Illustrating Shrinkage</h2><p>For a simplified derivation of free cash flow, I particularly consider the depreciation to CAPEX ratio resulting from GameStop&#39;s contraction. Historical data up to 2018 shows CAPEX exceeding depreciation aimed at growth, whereas since 2019 the company has fully embraced contraction, with depreciation consistently exceeding investments - most recently with a 63% CAPEX to depreciation ratio, or $20 million higher depreciation than investments. This results in a positive cash effect, contrary to the typical negative cash effect seen in growing companies that invest more than they depreciate. I will account for this positive cash effect in the subsequent calculation of free cash flow by adding the latest effect of $20 million to NOPLAT.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2571e3b5901480b277c84a541f83a89d\" alt=\"Author | Data: Seeking Alpha\" title=\"Author | Data: Seeking Alpha\" tg-width=\"640\" tg-height=\"167\"/><span>Author | Data: Seeking Alpha</span></p><h2 id=\"id_2163227530\">Fair Value With Optimistic Margins</h2><p>Regarding the terminal growth rate, I rely on the historical revenue CAGR of -7.8% over the past eight years, given there are no signs of a turnaround toward fundamental business growth. While this might initially seem high, it&#39;s still significantly lower than the accelerated contraction dynamics observed in the past year and the most recent quarter. In the sensitivity analysis, I also consider lower contraction rates, extending to a 0% growth scenario.</p><p>From all the assumptions discussed so far, a simplified company valuation emerges: Revenue x an optimistic future EBIT margin of 6% minus 25% taxes, plus the positive cash effect from low CAPEX requirements = free cash flow. The risk profile is marked by low country risk but a high 24M Beta factor of 1.8 (according to Seeking Alpha), leading to a WACC of approximately 11%. Adding the perpetual shrinkage assumption of around 8%, the Gordon Growth formula yields 19% in the denominator, resulting in a discounted value of FCF at 1.34 billion USD. Adding net cash, this yields a 1.94 billion USD equity value or 6.34 USD per share. Today&#39;s market value of around 11 USD, for instance, implies a 10% EBIT margin goal with only -4% terminal contraction or an 8% EBIT margin with zero growth starting now. Both scenarios seem unrealistic from today&#39;s perspective.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/95dbebeb19a03b285e85d52352c3701b\" alt=\"Author | Data: Aktienfinder.net, Seeking Alpha\" title=\"Author | Data: Aktienfinder.net, Seeking Alpha\" tg-width=\"640\" tg-height=\"462\"/><span>Author | Data: Aktienfinder.net, Seeking Alpha</span></p><p>The assumption of perpetual decline logically doesn&#39;t provide a basis for seeing GameStop as an investment case. In fact, this approach only accounts for the cumulative future earnings on today&#39;s book value (recorded equity value). The book value is estimated at 1.34 billion USD.</p><h2 id=\"id_972782077\">Conclusion And Personal Perspective</h2><p>This article was not written for traders or ideologically inclined activists who might interpret stock prices completely differently. From my very personal point of view, the GME madness was probably a lose-lose situation for all participants, with very few winners on the side of some &#34;revolutionary&#34; retail traders, who finally let each other down by taking profits themselves - not being better than others whom they accuse of market manipulation. From a fundamental perspective, GME&#39;s current value is indeed already closer to what could be considered plausible in overly optimistic scenarios, but based on my assumptions, it remains significantly overvalued. This is without even addressing the broader question of whether investing in a shrinking business model makes sense. If you want to explore other aspects of the gaming industry, I&#39;d be happy if you checked out my related articles on Nintendo (OTCPK:NTDOY)(OTCPK:NTDOF) and Take-Two Interactive (TTWO).</p></body></html>","source":"seekingalpha","collect":0,"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>GameStop: Approaching An Optimistic Fair Value But Not There Yet</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\">\nGameStop: Approaching An Optimistic Fair Value But Not There Yet\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-29 10:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4687078-gamestop-approaching-an-optimistic-fair-value-but-not-there-yet><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>I would steer clear of the GameStop stock – in every sense – both long and short.The fact that I have to mention this is a consequence for all serious market participants and potentially shows the ...</p>\n\n<a href=\"https://seekingalpha.com/article/4687078-gamestop-approaching-an-optimistic-fair-value-but-not-there-yet\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4554":"元宇宙及AR概念","BK4588":"碎股","BK4076":"电脑与电子产品零售","BK4085":"互动家庭娱乐","BK4577":"网络游戏","BK4524":"宅经济概念","BK4547":"WSB热门概念","BK4585":"ETF&股票定投概念","GME":"游戏驿站","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC"},"source_url":"https://seekingalpha.com/article/4687078-gamestop-approaching-an-optimistic-fair-value-but-not-there-yet","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2430080557","content_text":"I would steer clear of the GameStop stock – in every sense – both long and short.The fact that I have to mention this is a consequence for all serious market participants and potentially shows the damage to market transparency and efficiency to this day.GameStop does have some value, but it still lies well below its current share price. \"Healthy shrinkage\" leads back to profitability.Current valuation implies reduced contraction whilst significantly expanding margins.I have already covered other representatives of the gaming industry, including Nintendo and Take-Two Interactive.Michael M. SantiagoA Three-Year Long Ride Down Towards Fair ValueAt about 15 USD a share two months ago, my attention was drawn back to GameStop (NYSE:GME) three years after its dramatic showdown between retail traders and hedge funds, which led to its erratic price movements. I suggested that in a highly optimistic scenario, the downside could at least drop to 10 USD, a level we have already witnessed. Now, given GME's latest quarterly results, I conducted a more in-depth analysis of its current fair value. These are the key points of my thesis:I argue that although GME has already traversed the majority of its remarkably extended journey down from excessive peaks toward fair value, it still hasn't reached its destination.The business model simply continues to offer little in terms of attractiveness.I compare the macroeconomic, monetary, and fiscal landscape during the height of the excesses with how fundamentally different it appears today.Most importantly, I conduct a simplified yet fundamentally-based valuation for GME, based on the most recent numbers.Partially Charming, But Not A Sustainable Business ModelLooking into GME's operational revenue segments over time, it is easily observable that their formerly high-margin segment of reselling second-hand gaming products has been in a consistent decline since 2012. This is not very surprising and points to a fundamental problem that is still valid today. Due to digital sales, often directly marketed through the gaming platforms' in-house stores, the market for pre-owned video games should further decline significantly. And here we are not even discussing outsourcing computing power to cloud gaming, which could potentially render hardware obsolete in the future. With that, I also anticipate the existing games and hardware to consistently decrease in market value, despite some rare pieces that might gain vintage charm and value one day. Moreover, I see little rationale for someone to sell their old hardware cheaply to GameStop, which aims to profit from it, when it is easier than ever to sell through various reselling platforms privately, without intermediaries. \"Our largest vendors are Sony, Nintendo, and Microsoft, which collectively accounted for a majority of our new product purchases in fiscal 2023\", an unsurprising fact according to GME's 10-K filings that still leaves a very bitter taste, as it clearly indicates GameStop's lack of market power or, conversely, the high power of its suppliers.On the other hand, I believe that physical collectibles, as a counterpart to digitalization, might remain in demand among gaming and franchise fans. But \"Collectibles also included our digital asset wallet and NFT marketplace activities in fiscal 2023; however, both activities were wound down in the fourth quarter of 2023,\" it says in GME's 10-K filings. Issues like these, on the other hand, make me less optimistic about seeing a serious long-term strategy in GameStop. They jumped onto the NFT bandwagon and shut it down shortly thereafter. In this context, I would like to point out another risk that GME itself has identified in its 10-K filings: High turnover in key leadership positions could lead to a lack of clarity in GameStop's strategic direction. Coupled with high turnover rates in the retail and fulfillment sectors, this poses a risk to GameStop's ability to attract and retain skilled personnel, including key executives, potentially affecting the company's sustainable business development.Looking at the formerly reported segment \"digital\", it is evident that GameStop has never been able to significantly grow in this area. From my perspective, GameStop is therefore a nostalgic remnant of a relatively analog world, whose preservation would personally delight me, but which today does not show any promising prospects for a future business model.GME revenue segments (Aktienfinder.net)Macroeconomic Enablers of a Rollercoaster RideSome may still view GME differently than I do on a fundamental level, either through trading strategies or idealistic movements. But despite my support for democratizing the stock market, I do not at all see the GameStop events as beneficial to the cause. The \"diamond hands\" movement, while aiming to challenge the status quo, resulted in significant losses for many, with GME now trading almost 90% below its peak. Today's trading volume is no more but a shadow of its 2021 frenzy, underscoring the transient nature of such movements. This episode, marred by manipulative tactics on both sides, underscores a power struggle without any lasting victors.Certainly, herd-psychological and technical market mechanisms like Short Squeezes were at play. However, as a fundamental analyst, I am also interested in the broader context that may have facilitated these occurrences. One of the primary sources of \"free money\" enabling investors to engage in such behavior was monetary policy, with Fed assets doubling and interest rates being slashed in response to the pandemic. With this money, for instance, the US government was able to distribute funds like watering gardens via stimulus checks to the population. From March 2020 to March 2021, $814 billion flowed in three rounds, averaging 159 million payments per round. This amounted to a staggering 4% compared to the 2021 US Real GDP, or more than $5,000 per recipient.multpl.com, FRED, investing.comAs we are all aware, the current environment is markedly different, with the Fed having reduced its balance sheet and having substantially raised interest rates since the outset of 2022. Therefore, I suspect that stimulus checks played a significant role in enabling retail investors to engage in such behavior. This is clearly not something to speculate about occurring again in today's environment.Accelerated Contraction During Holiday SeasonFor a long-term retrospective to 2017, I reassigned the old segments to the new structure at my discretion. Notably, the software segment shrunk annually by -14% over eight years. Due to the more stable performance of the other two segments, the total annual revenue decline during this period was -8%. After having established the new segment structure as of 2020, the shrinkage of the software segment was -20% annually and -7% at the corporate level. The dynamics of this contraction became even more pronounced in the last fiscal year compared to long-term averages, with an acceleration to -11% in total revenue, and the quarter-over-year comparison showed the most significant contraction, with -19% in total revenue or -24% in the software segment, despite this being the seasonally strongest quarter with Christmas holiday sales. \"Our business (…) is seasonal, with the major portion of sales and operating profit realized during the fourth quarter of the fiscal year (…). (…) During fiscal 2023 and 2022, we generated approximately 34% and 38%, respectively, of our sales during the fourth quarter.\" (GME 10-K Filings)On a positive note, operational margins appear to have bottomed out two years ago and have since returned to breakeven on an annual basis, with a 3% net margin in the holiday quarter. Next, I optimistically assume that through a \"healthy shrinkage\", GameStop will nearly reach old profitability levels with a 6% operational margin.Author | Data: Aktienfinder.netInvestment Behavior Illustrating ShrinkageFor a simplified derivation of free cash flow, I particularly consider the depreciation to CAPEX ratio resulting from GameStop's contraction. Historical data up to 2018 shows CAPEX exceeding depreciation aimed at growth, whereas since 2019 the company has fully embraced contraction, with depreciation consistently exceeding investments - most recently with a 63% CAPEX to depreciation ratio, or $20 million higher depreciation than investments. This results in a positive cash effect, contrary to the typical negative cash effect seen in growing companies that invest more than they depreciate. I will account for this positive cash effect in the subsequent calculation of free cash flow by adding the latest effect of $20 million to NOPLAT.Author | Data: Seeking AlphaFair Value With Optimistic MarginsRegarding the terminal growth rate, I rely on the historical revenue CAGR of -7.8% over the past eight years, given there are no signs of a turnaround toward fundamental business growth. While this might initially seem high, it's still significantly lower than the accelerated contraction dynamics observed in the past year and the most recent quarter. In the sensitivity analysis, I also consider lower contraction rates, extending to a 0% growth scenario.From all the assumptions discussed so far, a simplified company valuation emerges: Revenue x an optimistic future EBIT margin of 6% minus 25% taxes, plus the positive cash effect from low CAPEX requirements = free cash flow. The risk profile is marked by low country risk but a high 24M Beta factor of 1.8 (according to Seeking Alpha), leading to a WACC of approximately 11%. Adding the perpetual shrinkage assumption of around 8%, the Gordon Growth formula yields 19% in the denominator, resulting in a discounted value of FCF at 1.34 billion USD. Adding net cash, this yields a 1.94 billion USD equity value or 6.34 USD per share. Today's market value of around 11 USD, for instance, implies a 10% EBIT margin goal with only -4% terminal contraction or an 8% EBIT margin with zero growth starting now. Both scenarios seem unrealistic from today's perspective.Author | Data: Aktienfinder.net, Seeking AlphaThe assumption of perpetual decline logically doesn't provide a basis for seeing GameStop as an investment case. In fact, this approach only accounts for the cumulative future earnings on today's book value (recorded equity value). The book value is estimated at 1.34 billion USD.Conclusion And Personal PerspectiveThis article was not written for traders or ideologically inclined activists who might interpret stock prices completely differently. From my very personal point of view, the GME madness was probably a lose-lose situation for all participants, with very few winners on the side of some \"revolutionary\" retail traders, who finally let each other down by taking profits themselves - not being better than others whom they accuse of market manipulation. From a fundamental perspective, GME's current value is indeed already closer to what could be considered plausible in overly optimistic scenarios, but based on my assumptions, it remains significantly overvalued. This is without even addressing the broader question of whether investing in a shrinking business model makes sense. If you want to explore other aspects of the gaming industry, I'd be happy if you checked out my related articles on Nintendo (OTCPK:NTDOY)(OTCPK:NTDOF) and Take-Two Interactive (TTWO).","news_type":1},"isVote":1,"tweetType":1,"viewCount":22,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":305706295718144,"gmtCreate":1715669825632,"gmtModify":1715669962313,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"as Victor said shorts never closed... boom","listText":"as Victor said shorts never closed... boom","text":"as Victor said shorts never closed... boom","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/305706295718144","isVote":1,"tweetType":1,"viewCount":16,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":214934169034864,"gmtCreate":1693511067733,"gmtModify":1693520718221,"author":{"id":"4146709871484912","authorId":"4146709871484912","name":"dr_balls","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false},"themes":[],"htmlText":"I like the stock&nbsp;","listText":"I like the stock&nbsp;","text":"I like the stock","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/214934169034864","repostId":"1137858821","repostType":2,"repost":{"id":"1137858821","pubTimestamp":1692491546,"share":"https://www.laohu8.com/m/news/1137858821?lang=&edition=full","pubTime":"2023-08-20 08:32","market":"us","language":"en","title":"BBBYQ Stock Alert: Get Ready for Liquidation After Sept. 12","url":"https://stock-news.laohu8.com/highlight/detail?id=1137858821","media":"InvestorPlace","summary":"Bed Bath & Beyond (BBBYQ) will hold a plan confirmation hearing related to its bankruptcy on Sept. 12.Shareholders should expect their interest in the company to be extinguished as part of Bed Bath’s ","content":"<html><head></head><body><ul><li><p><strong>Bed Bath &amp; Beyond</strong> (<strong><u>BBBYQ</u></strong>) will hold a plan confirmation hearing related to its bankruptcy on Sept. 12.</p></li><li><p>Shareholders should expect their interest in the company to be extinguished as part of Bed Bath’s bankruptcy plan.</p></li><li><p>BBBYQ stock is down by about 91% so far this year.</p></li></ul><p style=\"text-align: start;\"><strong>Bed Bath &amp; Beyond</strong> (OTCMKTS: BBBYQ) stock has fallen by about 50% this month and 90% so far in 2023 as its shareholders prepare for the closing of the company. On July 20, the retailer released its Chapter 11 bankruptcy plan, disclosing that shareholders would not receive anything following its bankruptcy:</p><blockquote>“In full and final satisfaction of each Allowed Interest in BBB, each Allowed Interest in BBB shall be canceled, released, and extinguished, and will be of no further force or effect, and no Holder of Interests in BBB shall be entitled to any recovery or distribution under the Plan on account of such Interests.”</blockquote><p style=\"text-align: start;\">In June, it was announced that <strong>Overstock</strong> (NASDAQ: OSTK) had acquired some of Bed Bath’s intellectual property (IP) assets — including its website and domain name — for $21.5 million. Overstock also has plans to change its stock ticker from OSTK to BBBY, according to <em>The Street</em>.</p><h2 id=\"id_3814720169\" style=\"text-align: start;\">BBBYQ Stock: Mark Your Calendars for Sept. 12</h2><p style=\"text-align: start;\">The Bed Bath brand will live on, but under the management of Overstock. The official Bed Bath website is currently operational under the power of Overstock, experiencing an interface makeover and an updated loyalty program in the U.S. On the flip side, all Bed Bath locations have officially shut down. The company’s bankruptcy files estimate that about $636 million of inventory will flow to its Debtor-in-Possession (DIP) budget.</p><p style=\"text-align: start;\">Shareholders were also disappointed with Bed Bath’s sale of Buy Buy Baby, which was thought to be the company’s strongest asset. <strong>Dream on Me Industries</strong>, a supplier to Bed Bath, acquired Buy Buy Baby’s IP for $15.5 million and later 11 of the brand’s leasing rights for $1.17 million. <em>CNBC </em>reports that these stores are “well-positioned to reopen” and located in popular real estate locations. Buy Buy Baby’s stores could reopen by as soon as this fall, backed by ambitious goals from Dream on Me’s management. The company’s Chief Marketing Officer, Avish Dahiya, previously disclosed plans to set up between 100 and 120 stores over the next one to three years.</p><p style=\"text-align: start;\">For now, its apparent that BBBYQ stock only trades on speculation as the closing of the company draws closer. On Sept. 12, the company will hold a plan confirmation hearing to discuss the bankruptcy and final approval of its disclosure statement.</p></body></html>","source":"investorplace_stock_picks","collect":0,"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>BBBYQ Stock Alert: Get Ready for Liquidation After Sept. 12</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\">\nBBBYQ Stock Alert: Get Ready for Liquidation After Sept. 12\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-08-20 08:32 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2023/08/bbbyq-stock-alert-get-ready-for-liquidation-after-sept-12/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Bed Bath & Beyond (BBBYQ) will hold a plan confirmation hearing related to its bankruptcy on Sept. 12.Shareholders should expect their interest in the company to be extinguished as part of Bed Bath’s ...</p>\n\n<a href=\"https://investorplace.com/2023/08/bbbyq-stock-alert-get-ready-for-liquidation-after-sept-12/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BBBY":"3B家居","BBBYQ":"3B家居"},"source_url":"https://investorplace.com/2023/08/bbbyq-stock-alert-get-ready-for-liquidation-after-sept-12/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1137858821","content_text":"Bed Bath & Beyond (BBBYQ) will hold a plan confirmation hearing related to its bankruptcy on Sept. 12.Shareholders should expect their interest in the company to be extinguished as part of Bed Bath’s bankruptcy plan.BBBYQ stock is down by about 91% so far this year.Bed Bath & Beyond (OTCMKTS: BBBYQ) stock has fallen by about 50% this month and 90% so far in 2023 as its shareholders prepare for the closing of the company. On July 20, the retailer released its Chapter 11 bankruptcy plan, disclosing that shareholders would not receive anything following its bankruptcy:“In full and final satisfaction of each Allowed Interest in BBB, each Allowed Interest in BBB shall be canceled, released, and extinguished, and will be of no further force or effect, and no Holder of Interests in BBB shall be entitled to any recovery or distribution under the Plan on account of such Interests.”In June, it was announced that Overstock (NASDAQ: OSTK) had acquired some of Bed Bath’s intellectual property (IP) assets — including its website and domain name — for $21.5 million. Overstock also has plans to change its stock ticker from OSTK to BBBY, according to The Street.BBBYQ Stock: Mark Your Calendars for Sept. 12The Bed Bath brand will live on, but under the management of Overstock. The official Bed Bath website is currently operational under the power of Overstock, experiencing an interface makeover and an updated loyalty program in the U.S. On the flip side, all Bed Bath locations have officially shut down. The company’s bankruptcy files estimate that about $636 million of inventory will flow to its Debtor-in-Possession (DIP) budget.Shareholders were also disappointed with Bed Bath’s sale of Buy Buy Baby, which was thought to be the company’s strongest asset. Dream on Me Industries, a supplier to Bed Bath, acquired Buy Buy Baby’s IP for $15.5 million and later 11 of the brand’s leasing rights for $1.17 million. CNBC reports that these stores are “well-positioned to reopen” and located in popular real estate locations. Buy Buy Baby’s stores could reopen by as soon as this fall, backed by ambitious goals from Dream on Me’s management. The company’s Chief Marketing Officer, Avish Dahiya, previously disclosed plans to set up between 100 and 120 stores over the next one to three years.For now, its apparent that BBBYQ stock only trades on speculation as the closing of the company draws closer. On Sept. 12, the company will hold a plan confirmation hearing to discuss the bankruptcy and final approval of its disclosure statement.","news_type":1},"isVote":1,"tweetType":1,"viewCount":53,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}