Yes but right now it has nothing to do with the company and everything to do with the fact that there’s something like 100 million shares shorted when only 60 million are available for trading. A bunch of short positions closed in January and all the Reddit bag-holders held on to their dream. Then… people started shorting it AGAIN and round and round we go.
Meanwhile there’s a bunch of bullshit about how the WSB crowd believes that Gamestop is somehow going to become the Chewy.com of videogames. Except… Gamestop doesn’t make games, doesn’t make consoles, doesn’t have any sort of platform like Steam… so I don’t know how that happens. It’s all bullshit to pacify the SEC, imo. This is entirely about trying to get money from the hedge funds and institutions that overextended (based on the company’s fundamentals, which are fucked).
It spiked up just before this weeks’ surge (not to January levels), but they clearly closed yesterday when it got back to $350 and dropped to $170 in literally 2 minutes. It’s low now and I think the stock is just riding a hype wave.
I’m just following this for fun at this point, I got my modest cash pile from this nonsense in January.
Two weeks ago, the company reported worse-than-expected fourth-quarter results that missed on the top and bottom lines. However, GameStop said its e-commerce sales jumped 175% last quarter and accounted for more than a third of its sales in the period.
So they’re having fun with their stock prices, but they still haven’t figured out how to make money or run a business during a period of time when the industry they’re a part of us doing, very well.
I know the Reddit crowd wants it to be true, but I don’t know why I’m going to buy digital games from Gamestop instead of directly from Sony, Nintendo, and Microsoft on their storefronts.
Selling PC parts? Ok… PC gaming is what % of the gaming space now? Do they have a magic supplier of graphics cards? What advantage are they going to offer over New Egg, Amazon, Microcenter, and other PC parts retailers?
Gamestop was a short squeeze that’s now over. I can’t fathom how they are still trading where they are other than wishful retail investors propping them up.
And it’s pretty much fully recovered to finish only down 2.35% after talks of an offering and it being down double digits in the am. Any other stock I’d be super bullish on when it does this. This one is crazy…do not want.
It’s just irrationality, stocks are worth what people are willing to pay for them and a concerted group of kids investing money they can’t afford to lose can really move the mark. This works great, until it doesn’t. Ultimately gamestop doesn’t have a functional business model.
I think quite few people have already gotten richer off this and reinvested with house money…just to yank the rug again. There’s gonna be a lot of new heavy drinkers born from this.
This sounds a lot like talk around Tesla five years ago.
I’ve been to a Gamestop recently. I didn’t buy anythign though. Why would I buy used for $5 less than new? Why would I buy a 3 year old game for $60 there, when even odds I can buy the same at Target for $40 (because Nintendo games hold their prices far longer than many others) or even on the eshop?
The last time I bought something at Gamestop was… I don’t even know. Maybe Lego Star Wars for the DS for $10 some years back?
I’m sure I already said it here, but I bought a Switch and they tried every trick to stop me from returning it. Not only did the retail location I went to close, but I swore I’d never shop there again.
