To The Moon

GameStop reported its Q4 2022 earnings results on 21/3 (Tue) & it was the long awaited 🤗🥳📰 for shareholders❣️

⭐️ Coming off the back of a strong quarter of hardware sales, GME beat both revenue & EPS expectations of Wall Street & Whisper Number👍👍

⭐️ GME was able to post net sales of $2.23 billion, beating out Wall Street average estimates of $2.2 billion🥳

⭐️ Wall Street & Whisper Number expectations expected GME to post losses on EPS, with Wall Street expecting an average loss of $0.13/share & Whisper Number expecting a loss of $0.20/share but GME actually put up gains of $0.16 per share🥳🥳

👍 Big contributors to GME’s successful Q4 2022 earnings results included hardware sales, which accounted for $1.24 billion of its overall net sales, or about 56%

👍 Collectibles were also notable with a bottom line of $313 million, up from Q4 2021’s $279 million.

👎 Software was down from the previous year’s quarter, only getting to $670 million, but the other 2 categories performed more than well enough to make up for it👌

⭐️⭐️ It's also worth noting that this was the 2nd consecutive quarter that GME was able to generate positive cash flow returns with $338.2 million reported in Q3 2022 & $177.3 million reported in Q4 2022 & the the 1st time since it reported profitability since early 2021.

⭐️ Unsurprisingly, the market’s reaction was anything but subdued. Shares rallied over 50% right after the release of the results & came down modestly to close the next day’s trading session at 30%+

Does The Q4 2022 Earnings Sound Too 👍 To Be True❓

🚨 Unlike during past Q4s, GameStop did not release its Form 10K. The 10K is an annual report that provides a comprehensive overview of the company's business along with its financial condition & audited statements.

🚨 When a publicly-listed company delays its filings, it often opens up room for speculation. This is especially true for GameStop, whose share price is so heavily influenced by retail sentiment.

➡️ There are many reasons a company may miss its filings - some are serious, & some are insignificant. The most common reason for a late filing is simple accounting issues.

➡️ Interestingly, some studies point out that, when accounting reasons are not cited by a company as the reason behind their filing delay, investors infer underlying issues with the company's fundamentals, which in turn can have bearish repercussions.

➡️ Negative price reactions tend to be more dramatic when there is a delay in quarterly filings rather than annual filings, however this is because quarterly reports have less information & are not audited, so they are easier to fill.

⚠️ Delayed filings of any type can still raise questions among market participants as to whether the company's management is sound, whether staffing is adequate, or whether the company might be dealing with accountability problems.

🤔Is it ⏰ To Buy GME After Positive Earnings❓

For me, it’s a concern that GME has yet to release its Form 10K-it’s like they have something to hide & it makes me wonder what 👎📰 is on its way…GME is still way overvalued at its current price of $23+ given that it was trading at $5 before the memehype😅 Moreover, I’m not comfortable with buying meme stocks even though it has turned to be profitable once again. I’ve made 💰💰💰 from meme stocks but I’ve lost more💸💸💸 I didn’t make a lot of loss as it was just my mini experiment👩🏻‍🔬⚗️🧫 when it was the in-thing in 2021😂 My investing policy after my meme stock experience is that why buy risky meme stocks like $GameStop(GME)$ $AMC Entertainment(AMC)$ Bearishwhen I can buy quality tech stocks like $Apple(AAPL)$ Bearish$Microsoft(MSFT)$ Bearish$Alphabet(GOOGL)$ Bearish with proven track records & I’m bound to make a profit as long as I buy low sell high❓Patiently waiting for the tech stocks to correct so that I can add more shares❣️

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