GameStop

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• neutral assessment Mark Cuban

  if I was on WallStreetBets today, right, and I wanted to make a case for GameStop, and nobody had ever traded in a nickel, you know, it would be what you were seeing right now. You know, you could say that, you know, they had a billion dollars in e-commerce sales in the past 12 months. It was growing 309%, you know, year over year, and you value their brick and mortar at zero, and if you got, you know, a billion dollars net, is it worth six times sales? You know, given they have $2 billion in de

• neutral fact_claim David Friedberg

  gamestop recently launched nft.gamestop.com unclear what the purpose of this yet but it seems like they're getting into nft non-fungible tokens

• mixed assessment David Friedberg

  somebody becomes a meme stock which translation means they're very popular amongst retail investors they issue more shares to raise money and then they hire incredibly talented management teams and say here's an incredible brand with incredible shareholders and a pile of cash go doesn't mean that it's going to work but it does mean that these retail investors have now become venture capitalists in a way they're putting money into a company they're getting attention for it and then they're recrui

• bullish endorsement Unattributed

  which seems to be the logical thing to do if people are rewarding you with a higher stock price

• neutral fact_claim Unattributed

  it looks like gamestop is riding this momentum to take down a bunch of capital and uh fuel this reddit fueled run for all it's worth

• bearish assessment Unattributed

  gamestop as you know is a store that sells games and consoles but that's a very challenged business

• neutral fact_claim Unattributed

  gamestop is hiring a bunch of amazon executives and they've raised a ton of money

• neutral fact_claim Unattributed

  gamestop today announced that its board has unanimously approved an update to its investment policy to add bitcoin as a treasury reserve assets

• neutral fact_claim Unattributed

  i do think the 3 billion dollar number is very interesting because i looked at gamestop's cash holdings at the end of their most recent quarter around 4.8 billion in cash

• bearish prediction David Sacks

  I mean, right, that the trades are, the order flow is going from Robin Hood to Citadel. They're not going to be caught flat footed. They're on the other side of this trade. And so, you know, I just think the house always wins. I'd be real careful about getting into it at this point.

• mixed assessment Unattributed

  Now, I do think that the Redditors actually had a brilliant strategy, right? When they noticed that these hedge funds were over short, overexposed, and they seized on that vulnerability, they did to the hedge funds, what the hedge funds usually do to everybody else, which is find the Achilles heel. Right? And pile in. Yeah. So I think the strategy started brilliant. Now, anyone who's piling into it, I'd be real careful because I think the hedge funds have regrouped, you know, and, you know, the,

• bearish prediction Unattributed

  Probably. This is not going to end well. There's no question about that. I totally agree with you that people engaging in this kind of speculation and buying at these prices, it's not going to end well.

• bearish criticism Unattributed

  Is there any way this company could be worth 20 billion or 25 billion? Because as Freeberg points out there, people are not buying GameStop. They're, they're trying to destroy a hedge fund, who made a stupid, manipulative bet.

• bullish assessment Unattributed

  His former COO and CFO of Chewy also two board seats. They collectively, you know, bring their experience in e-commerce, online marketing, finance, and strap planning.

• bullish fact_claim Jason Calacanis

  So, and, and the Chewy founder who is very successful at e-commerce came in to run the company.

• bullish assessment David Sacks

  And so the stock got beat up over the last couple of years as people stopped going to malls and stopped buying stuff in stores and everyone thought the company was going to die. And so these guys observed that maybe there's real value in this company and it's making money.

• bullish endorsement Chamath Palihapitiya

  August 22nd of 2019, Michael Burry, who is this guy famous from, uh, the big short, who's the guy that caught the mortgage thing. He discloses a 3% position in the company. And he highlights that 90%, 9, 0% of game stops, 5,700 stores are free cashflow positive. That's like pretty good. He urges a buyback and he notes that the company was trading at or near net cash levels. So he's making a deep value oriented fundamental thesis as well.

• neutral fact_claim Unattributed

  and so in the case of gamestop i think the cost of borrow got so high um that you're basically paying 30 40 50 60 percent you know interest rate to borrow gamestop shares to sell them short because you know there is a market dynamic in in the cost to sell short that um you know that doesn't uh come at a at a kind of negligible or free cost

• neutral fact_claim Unattributed

  as of this friday the short interest was still i think about 50 percent um in gamestop and so it's been it's been ebbing down i didn't check today well the report was it got cut in half um again uh and that there was a very small short interest now but the stock dropped another 60 percent today so obviously if you're short the stock you may start buying and taking your profit and gains and going home at this point and moving on

• neutral fact_claim Jason Calacanis

  the gme short interest dropped in half today it's monday i'm sorry it's tuesday but yesterday had dropped in half

• neutral assessment Chamath Palihapitiya

  but this is an example of where if you don't do this analysis properly gamestop was another where you misjudge or you sub analytically look at the actual share count and what's actually free floating you can get caught on the wrong side and these things can be very

• bearish assessment Chamath Palihapitiya

  The whole point is you can figure out that there's no logical justification for this company using one Google search and the calculator app on your Mac.

• bearish fact_claim Chamath Palihapitiya

  You didn't even use a sophisticated model. You used probably the calculator app on your fricking Mac to figure out that it was 192 times.

• mixed assessment David Friedberg

  GameStop finished the year, 2023 fiscal year, with sales of $5.3 billion down from $5.9 billion the year before. So sales declined by 12% in the year. Adjusted EBITDA for the year was $65 million. And they have about $1.2 billion in cash. Currently, as of today, the market cap is about $13.5 billion. So that makes it about a $12.5 billion enterprise value. $12.5 billion divided by $65 million of EBITDA means that this stock is currently trading at about 192 times EBITDA. A business that is profi

• neutral assessment Chamath Palihapitiya

  No, it's he's posting a meme. Okay. Thank you. He put a picture on the internet. Okay. I mean, again, this is like the problem that we have,

• bearish criticism Andrew Ross Sorkin

  chamath you and i probably talked about this years ago i remember i'd either talk about like gamestop or some of these other companies and tell people you know oh you got to be careful guys this go wrong i said that a little bit about spacking stuff and some other things and people like sorkin stop it you're not protecting me you're protecting the man you're protecting the man and it was sort of regulatory capture it's a very interesting concept so anyway i haven't come up with a you know a neat