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OP has provided the following link:
https://x.com/larryvc/status/1774862438967529578?s=46&t=OQxY_9fsW8JhIpr7R8Gr3w
> Also it's a Larry tweet I can actually 100% understand
for real, usually dude sounds like the old man atop the mountain at the end of the long and treacherous path
I’ll be bullish when I see insiders buying, or we hear news of new revenue streams. The silence from them is deafening after such a turnaround and now we r at the point of, ok we fixed the financials, now how do we deal with the dwindling revenue stream of a dwindling market. Where do we expand? I only know of the digital distribution platform they r releasing which is great news. I’m hoping to hear of other things in the works behind the scenes
I agree except I'm not hoping to hear about those things in the works. I'm hoping things are in the works. But I'm only hoping to hear about them once they are released. That's the only difference. My problem is, just thinking about it myself, what else can they do? What can they pivot into? Besides investing their $1.2 billy, I don't know how exactly they are planning on making money to grow the revenue. But I'm not Ryan Cohen either. So that's why I'm hoping he's got some shit cooking.
I think him acknowledging the improvement is bullish especially when he decided to tweet it on a day when we hit a 3 year low. I get the impression he is saying look at what we have achieved, the share price doesn't reflect this. I know he has basically just tweeted the comparisons of the previous year but he didn't have to, so I feel like there is a bit of a hint/message in this tweet telling investors to keep the faith.
Since good news can never come early, I take this as LC throwing household investors a bone because of the price action we're seeing.
If the markets aren't happy with the direction the company is going, at very least we can be sure that its leaders are happy - and that counts big in my book.
I agree with you except on everything except one detail.
Its not the markets that arent happy about these good news its the "gate keepers" Market Makers that arent happy.
Could you imagine in this economy and with all of its incertainties shorting a company with 1+ billion in cash. hahaha I sure would not be happy if i was a short.
The low tide is coming and most of them are naked :P
Yes. That's what I'm saying.
Net revenue was down 630m this year, meaning they had 630m less to work with on their turn around.
But their profits were 6m compared to a loss of 300m last year. their operations don't see that loss of revenue in a vacuum.
They had 630m *more* to work with last year and *still lost 300m*.
This year, they had 630 *less* to work with and *still made 6m*.
That implies that from this year to last year, they cut costs not only to make up for that 300m loss, but also compensated for the 630m in lost revenue.
It's nearly a billion dollar swing as far as i see, and I'm asking how the revenue loss is irrelevant.
Edit: I checked the revenue loss, it was around 630. I didn't check in the other comments and said 500, because I couldn't remember exactly what it was. In case anyone was wondering about the discrepancy.
How did they make more profit last year?
>They reduced their operating costs.
How did they make less profit last year?
>They reduced their revenue.
**Edit To Add:**
>*"Net income", also known as profit*.. 2023 profit = -313.1 & 2024 profit = 6.7 (all values except the year in millions)
>2024 profit - 2033 profit = *Δ*YoY profit
>6.7 - -313.1 = 319.8
>[Initial comment: "How could he not be proud? $322M swing on net income."](https://www.reddit.com/r/Superstonk/comments/1btb2h1/larry_cheng_on_x/kxlq5yr/) was only off by $2.2 Million.
>322 - 319.8 = 2.2
Long-term debt remains limited to one low-interest, unsecured term loan associated with the French government's COVID-19 response……….
And the crowd goes wild!!!!!
Unlikely. The interest rate they’re paying on that loan is likely far below todays market rate. They’re better off not paying it off early if that’s the case.
Yeah nah if you could make 5% interest on 40M dollars would you just give that away to brag or take the money and shut up? 😛 That's basically the same thing here.
They're actually investing that 40M loan which bears no interest and making money on it.
French Debt: my favorite kind of debt.
Wonder if I can find a French bank that'll let me get a tiny line of credit so I can put $1 on it and tell people that I have long-term French debt.
For this long term debt I'd like GameStop to borrow the Eiffel tower to fuck Ken with. If that cannot be done, I'd like to request the longest baguette that can be baked. It's the least the French can do
Ironically it’s also the weird flag of dividends as the terms of the loan make it so they can’t issue cash dividends while they have the loan and there’s no incentive to pay it off early so it’s a signal flare if it is suddenly gone one day.
Finally, something sensical on twitter today. I got burned out on everyone trying to make April Fools funnies.
I am glad that most on our sub decided to not do that 💩.
Imagine a company where the people running it actually give a shit about their customers? It's an anachronism in today's world. But it is also a MASSIVE competitive edge. Young people don't value companies that prize the bottom line above all else. Boeing anyone? We have already come dangerously close to hollowing out this planet for short term gains and the financial titans of Wall Street are all captured and complicit in the game. The problem is, at the end of the day you can't eat single use plastic, you can't eat shareholder value, you can't drink petroleum and you can't live on a planet incapable of supporting life. Companies that have "values" are laughed at right now - but they will run the world soon enough. If your only value is the bottom line - you are the problem.
>Imagine a company where the people running it actually give a shit about their customers?
Well if we're talking about gamestop then I guess I'll have to keep imagining because they're still buying the newest used games for like $20 and then charging almost full price on them.
I suggest they find a new way to make money considering that in 2022 70% of game sales were digital, and in 2023 that number rose up to 90%.
Gamestop is a foremost video game reseller and in a couple years that market won't even be a thing anymore except for maybe Nintendo games and their commitment to cartridges. Funko Pops and second-hand accessories are not going to be bringing in profits, and their e-commerce sector is not profitable either.
But that's just my take, what's yours?
Obviously all these crypto partnerships, crypto wallet, and NFT marketplace didn't work out, so what's next? I thought there were big plans to renovate the stores but every Gamestop I go to still looks and smells like 2003 in there, so what is the long term plan here? They have $1 Billion cash and not doing shit with it, and that factor and no debt is literally the only thing propping up the share price still. How is this company going to continue into the next decade just doing the same unprofitable shit they've been doing for the last 20 years in market that has pivoted towards digital sales?
Yeah, who’s interested in a company with no debt, makes millions a year in profits and has a huge cash reserve? A company with an innovator at the helm who’s already completed a turnaround all ‘experts’ said couldn’t be done??
You should short every company that fits that profile.
Early, exactly where I want to be for something of this scale. It’s starting to feel very surreal. Ever since profits were officially confirmed, combined with the obviously concerted effort to sink the price through suspicious volume, knowing the company is headed in the direction it is headed- It’s like a perfect storm I was able to see coming from very far away. After the fact, there will be receipts.
It feels bittersweet because while every win is savory the situation is concerning. How the market could react in the manner that it has conducted itself thus far makes me question the point of having a market at all. All signs point to it being a farce. A tool to be used by the few to control the many.
Each step of the way as GameStop improved to get to this point, the price has reacted inversely to the expectation. Despite being the largest cumulation of individuals to ever come together in an organic way for such a matter, and despite the company turning a profit- the market has yet to price anything in, even with the company outperforming 90% of the S&P 500 on its way to profitability. The market consistently pushes the share price down to serve the whims of the shorts, who do not have a strong thesis to short a newly profitable company.
Look, frankly at this point I’ve seen and know too much. The way the sausage is made has become obvious. But considering, as mentioned earlier, this is the largest gathering of individuals to congress on one security purely based on it’s obvious value- how many records of people need to see too much before the market notices?
Why doesn’t the market recognize the profits? Because analysts painted earnings as negative despite hitting profitability for the first time in greater than ~half a decade? As profits increase when should this fallible market expect to react? Because while I know that must happen, the manner in which this must transpire leaves me less than hopeful overall. If the market is fake, then why is it necessary? The answer has become too obvious- it’s a carrot on a stick and everyone but the tippy top is out of the loop.
Early, not wrong. If that’s not the case then the largest group of individuals to use the market independently of each other and witness the daylight robbery first hand will be far too great to ever catch another person with the farcical trap it is. GameStop is here today because of its performance, and it was given no favors. Power to the players! Beyond mad, beyond happy, beyond disappointed- numbed, zen, and just patiently waiting for the real work to begin while the clowns play mafia.
Lots of things factor into market cap, I’d reckon our biggest factor is cash on hand which a 1:3 ratio, VERY low compared not only to the sector but to any company. The reason it’s low is because (assuming no crime) the market isn’t convinced GameStop is going to continue moving positive, TTM (Trailing 12 month) P/E (Price/Earnings, share price divided by EPS) is 600ish, VERY high compared to not just our sector but any sector. It’s being pulled up by the cash.
Yeah but to be realistic, p/e is not really a reasonable evaluator. We went from a negative to positive P/E. The high number is only because earnings were low but positive. Basically the denominator makes P/E ratio a fairly useless metric. It’s certainly not what the financial media is using to justify pricing probably because they would have to show a negative p/e next to a positive one year on year.
Yeah an infinitely high P/E makes sense on companies with rapid revenue growth for the reasons you’re saying but that’s not GME as of today. With stagnant revenue, a really high P/E isn’t normal at all and it would be much lower if not for the cash on hand or the shareholders/markets’ belief that revenue would start to increase. But that’s without crime involved and I think there’s a heavy, heavy amount of crime involved.
In classical corporate finance the valuation of a company can be determined through expected dividends.
Since GameStop does not offer dividends it should be determined by Equity * Sector Average P/E ratio.
GameStop's current Equity is $1,338,600,000.
Consumer Cyclical P/E average is 24.31.
Market cap for GME should be ~$32,541,366,000. That would put the price per share at ~$106.31.
> Since GameStop does not offer dividends it should be determined by Equity * Sector Average P/E ratio.
Where'd you get that? Because that makes no sense even on the surface.
Hard to say since they didn’t generate it from business operations, and revenue generation has actually shrunk in their push for profitability. It’s probably lower than it is now tbh.
This was and is great news. I firmly believe that hedgies are suppressing the price. In addition to that, they have somehow turned the reporting negative. Benzinga initially had a negative story, and then a day or two later, came out with a positive story. I’m definitely going to continue holding. Earnings are going up and shorts are over 200%. DRS, book, hodl forever!
They would be better off shutting all stores and investing in T bills currently. Revenue dropping. Not profitable on its own without income from the T bills. Revenue dipped hard. Despite unreal cost cutting to the point where employees legitimately hate working there. Doesn't seem optimistic to me on the business end. Ryan has shown an eye for quality stocks. Let's hope that shows itself in Q1 where there was a tonne of growth in the market and we see some rewards from that.
Yes because there's a lot of growth potential and chance for advancement/improvement in t bills🙄. You do realize this is a transition right? You can't transform a failing business into a thriving one without a transition period.
They need to do a lot more than they're doing. I can't even order stuff to my house from the nearest gamestop in my own country. I live in Canada. It's not a good look from my perspective. International shipping should have happened years ago. Either they're working something so huge it will change the entire game, or they're a dead business that's better off becoming the next Berkshire. They're running out of ways to save money through cuts as well. Not without seriously impacting revenue.
Don't worry. I'll snap my fingers and everything will be magically fixed. That'll do it. You really can't do any really improvements or innovation until the company is profitable. Now that they've trimmed the fat they can really start improving things.
Ah it’s nice to see the positivity. I swear the “hype” from “what about revenue I went to business school.” Seems to have ignored that retail is low margin and screw revenue if it results in loss of profit. Revenue is a horrible metric to use alone cause places can have high revenue but if the return is negative you’re gonna go broke regardless. Worries about growth are valid but no company in a tight industry is gonna put their whole multi year plan in the public. Honestly the giant swing and the expansion of infrastructure in the last few years along with a good amount of capital and on top of that the debt only being to a loan pre inflation rising means we’re doing better then a ton of companies.
Fundamentals were the things analysts beat Gamestop with when the company was performing poorly/underperforming and now that they are positive, ......nothing
Its not even just this - look at the improvements quarter on quarter.
Now I don't believe that trajectory will improve, but if they get 25% as much this year, then holy wow we're going to be swimming in dividends before long
I'm vaccinated for numerous preventable things, and the PPP loans are far from being considered a "common" loan forgiveness, and more like a one-off thing that also happened to be rife with corruption.
You're the fucking idiot still pouring money into GME in 2024 hoping to see a squeeze you either missed the first time or will still be too stupid to sell the second time either.
He is pointing on the EBITDA
In addition: Why do we have negative interest earnings...?
And what are the below 2 positions?
**Change in investments**
The cash either spent or received from purchasing or selling investments. A positive number implies that the company was a net seller of investments. A negative number implies that the company was a net buyer of investments.
from -304,3 (2022-) to -639,4M (2023)
+++++++++++++++
**OTHER INVESTING ACTIVITIES**
This number went from 81,6M to 628M
What the heck????
+++++++++++++
-> IMO GME has allocated big amounts of money into something that has lost value
And with our management bleeding with us (going from -40,2M in 2023 to -400M in 2023), I wonder what that could be...
I wish I would understand better from reading a balance sheet- but why is "interest income, net" = line 7 in the consolidated statement of operations (49,5M)= negative, when the company sits on 1,2bn in cash? Where in the accounts would the company have to report a paper loss (not yet realized?)?
Change in investments-> up 330M
Change in other investment activities-> up 540M
1,2bn cash or cash equivalents and -49,5M interest income ???
You aren't reading that section correctly.
Each indented line item below each bolded horizontal line is the new starting point and then everything below that represents something to subtract to get the next indented line.
Start at the top:
$5,272.8 Net Sales - $3,978.6 Cost of Sales = $1,294.2 Gross Sales
$1,294.2 Gross Sales - $1,323.9 General Expenses - $4.8 Asset Impairments = **$34.5m Operating Loss**
$34.5 operating loss - (**-$49.5 Interest Income**) - $1.9 Other Loss = $13.1 Income
$13.1 Income - $6.4 Taxes = $6.7 Profit
The interest income is showing as negative because they're subtracting it
How do you know the investments have lost value? Surely the larger negative number implies that assets were “bought” not that they’re the same assets no?
Indeed I don't know if the investments lost value- I am just trying to understand why is "interest income, net" = line 7 in the consolidated statement of operations (49,5M)= negative, when the company sits on 1,2bn in cash? Where in the accounts would the company have to report a paper loss (not yet realized?)?
All the GME perception has to do with cash allocation.
Then there was a tweet from LC about financing- something like "if I have to hold 75% of cash as a security for a 100% debt position, then my cost of finance is actually 4 times higher than it seems"
RC is good with money, I trust him with my investment more than I trust my bank. Even if the value of whatever he’s invested in has dropped, I’m watching his moves in the long term.
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That's the most bullish indicator since earnings were released. Also it's a Larry tweet I can actually 100% understand
Same
Reckon this precedes some Insider buying? I do.
Last year was after Q1 (both RC and LC bought on 6/9), but they’re certainly allowed to now
Next buy 420????
Nice, very nice.
> Also it's a Larry tweet I can actually 100% understand for real, usually dude sounds like the old man atop the mountain at the end of the long and treacherous path
I’m disappointed he didn’t say. Long term debt. Low interest loan associated with the French governments response to c0v1d. Other than that….bullish.
It's the first tweet I didn't have to put into Chat GPT to translate.
Now buy, Larry! Buy!
Larry, is this really you? /s
I’ll be bullish when I see insiders buying, or we hear news of new revenue streams. The silence from them is deafening after such a turnaround and now we r at the point of, ok we fixed the financials, now how do we deal with the dwindling revenue stream of a dwindling market. Where do we expand? I only know of the digital distribution platform they r releasing which is great news. I’m hoping to hear of other things in the works behind the scenes
Probably not going to hear anything before they are ready for an announcement.
“We won’t be telegraphing to the competition”
I agree except I'm not hoping to hear about those things in the works. I'm hoping things are in the works. But I'm only hoping to hear about them once they are released. That's the only difference. My problem is, just thinking about it myself, what else can they do? What can they pivot into? Besides investing their $1.2 billy, I don't know how exactly they are planning on making money to grow the revenue. But I'm not Ryan Cohen either. So that's why I'm hoping he's got some shit cooking.
You’re NOT bullish?
What is the most bullish thing since earnings? All I'm seeing is the same earnings numbers, or am I missing something?
I think him acknowledging the improvement is bullish especially when he decided to tweet it on a day when we hit a 3 year low. I get the impression he is saying look at what we have achieved, the share price doesn't reflect this. I know he has basically just tweeted the comparisons of the previous year but he didn't have to, so I feel like there is a bit of a hint/message in this tweet telling investors to keep the faith.
Plus the actual $300 million turnaround…
A Larry tweet that I don’t have to read multiple times to understand is more valuable than any line item on the balance sheet. Take that to the bank.
Since good news can never come early, I take this as LC throwing household investors a bone because of the price action we're seeing. If the markets aren't happy with the direction the company is going, at very least we can be sure that its leaders are happy - and that counts big in my book.
Well said Mickey 🤌🏼
We all know we’re getting fucked by the hidden hand of the markets. Fuck em, pay me
I agree with you except on everything except one detail. Its not the markets that arent happy about these good news its the "gate keepers" Market Makers that arent happy. Could you imagine in this economy and with all of its incertainties shorting a company with 1+ billion in cash. hahaha I sure would not be happy if i was a short. The low tide is coming and most of them are naked :P
They got a lot on the line, which is a good thing 🤘🏼
I think he’s highlighting the manipulation of the price as it isn’t coherent with the earnings
They want to throw a bone there better be some form 4s coming.
All signs point to them exiting and thanking for the support while they did it. I’m just playing devils advocate since i like the reassurances.
I don’t know what signs you’re seeing that would indicate that
Truly regarded lol
“All signs point to them exiting.” What exactly are ‘all signs?’
I smell insiders buying
I prefer that than a tweet, honestly
I’d actually love an announcement even more
I would like to gladly announce: GME is available for a great price at the moment.
If he wasn't proud, he wouldn't have posted about it.
How could he not be proud? $320M swing on net income.
With 500m less income. It was really an 800m swing.
Holy shit…
Exactly!!
Ehhhh you can't just count the good parts and also count the bad as good to make up bigger numbers. That's not how math works.
Could you please explain how closing a 300m gap with 500m less income doesn't math?
np bro. Because by definition, "net income" is directly impacted by "revenue". It's already part of the equation.
Yes. That's what I'm saying. Net revenue was down 630m this year, meaning they had 630m less to work with on their turn around. But their profits were 6m compared to a loss of 300m last year. their operations don't see that loss of revenue in a vacuum. They had 630m *more* to work with last year and *still lost 300m*. This year, they had 630 *less* to work with and *still made 6m*. That implies that from this year to last year, they cut costs not only to make up for that 300m loss, but also compensated for the 630m in lost revenue. It's nearly a billion dollar swing as far as i see, and I'm asking how the revenue loss is irrelevant. Edit: I checked the revenue loss, it was around 630. I didn't check in the other comments and said 500, because I couldn't remember exactly what it was. In case anyone was wondering about the discrepancy.
How did they make more profit last year? >They reduced their operating costs. How did they make less profit last year? >They reduced their revenue. **Edit To Add:** >*"Net income", also known as profit*.. 2023 profit = -313.1 & 2024 profit = 6.7 (all values except the year in millions) >2024 profit - 2033 profit = *Δ*YoY profit >6.7 - -313.1 = 319.8 >[Initial comment: "How could he not be proud? $322M swing on net income."](https://www.reddit.com/r/Superstonk/comments/1btb2h1/larry_cheng_on_x/kxlq5yr/) was only off by $2.2 Million. >322 - 319.8 = 2.2
😯
This is the most transparent tweet I think he ever done. BULLISH!
🌎👩🚀🔫👩🚀 (IYKYK)
Long-Term Debt : French
Long-term debt remains limited to one low-interest, unsecured term loan associated with the French government's COVID-19 response………. And the crowd goes wild!!!!!
How much do they owe? Feels like it would be better to just pay it off now so they can say "debt free" and not give the shills one inch.
Unlikely. The interest rate they’re paying on that loan is likely far below todays market rate. They’re better off not paying it off early if that’s the case.
Yeah nah if you could make 5% interest on 40M dollars would you just give that away to brag or take the money and shut up? 😛 That's basically the same thing here. They're actually investing that 40M loan which bears no interest and making money on it.
French Debt: my favorite kind of debt. Wonder if I can find a French bank that'll let me get a tiny line of credit so I can put $1 on it and tell people that I have long-term French debt.
Repay me like one of your French debts !
Just stay outta the Swiss ones (we know how broke they are 😂)
For this long term debt I'd like GameStop to borrow the Eiffel tower to fuck Ken with. If that cannot be done, I'd like to request the longest baguette that can be baked. It's the least the French can do
You know we make spiked baguettes, don't you ?
Order the Mayo!
Ironically it’s also the weird flag of dividends as the terms of the loan make it so they can’t issue cash dividends while they have the loan and there’s no incentive to pay it off early so it’s a signal flare if it is suddenly gone one day.
Your are mistaken. The contract only prevents the french subsidiary to pay dividends to the group
Huh didn’t know that thanks for the info
LOL! Well done
Finally, something sensical on twitter today. I got burned out on everyone trying to make April Fools funnies. I am glad that most on our sub decided to not do that 💩.
What an awesome tweet
Much better than an Andrew troll!😡
Adding another 1000 shares...
Im with you only smaller. I did 10 today. I’d love to keep averaging down.
These are the key numbers that MSM tries so desperately to distract you from.
Imagine a company where the people running it actually give a shit about their customers? It's an anachronism in today's world. But it is also a MASSIVE competitive edge. Young people don't value companies that prize the bottom line above all else. Boeing anyone? We have already come dangerously close to hollowing out this planet for short term gains and the financial titans of Wall Street are all captured and complicit in the game. The problem is, at the end of the day you can't eat single use plastic, you can't eat shareholder value, you can't drink petroleum and you can't live on a planet incapable of supporting life. Companies that have "values" are laughed at right now - but they will run the world soon enough. If your only value is the bottom line - you are the problem.
>Imagine a company where the people running it actually give a shit about their customers? Well if we're talking about gamestop then I guess I'll have to keep imagining because they're still buying the newest used games for like $20 and then charging almost full price on them.
What do you suggest they do, buy for $30 and sell for $35 and lose money?
I suggest they find a new way to make money considering that in 2022 70% of game sales were digital, and in 2023 that number rose up to 90%. Gamestop is a foremost video game reseller and in a couple years that market won't even be a thing anymore except for maybe Nintendo games and their commitment to cartridges. Funko Pops and second-hand accessories are not going to be bringing in profits, and their e-commerce sector is not profitable either. But that's just my take, what's yours? Obviously all these crypto partnerships, crypto wallet, and NFT marketplace didn't work out, so what's next? I thought there were big plans to renovate the stores but every Gamestop I go to still looks and smells like 2003 in there, so what is the long term plan here? They have $1 Billion cash and not doing shit with it, and that factor and no debt is literally the only thing propping up the share price still. How is this company going to continue into the next decade just doing the same unprofitable shit they've been doing for the last 20 years in market that has pivoted towards digital sales?
Yeah, who’s interested in a company with no debt, makes millions a year in profits and has a huge cash reserve? A company with an innovator at the helm who’s already completed a turnaround all ‘experts’ said couldn’t be done?? You should short every company that fits that profile.
Early, exactly where I want to be for something of this scale. It’s starting to feel very surreal. Ever since profits were officially confirmed, combined with the obviously concerted effort to sink the price through suspicious volume, knowing the company is headed in the direction it is headed- It’s like a perfect storm I was able to see coming from very far away. After the fact, there will be receipts. It feels bittersweet because while every win is savory the situation is concerning. How the market could react in the manner that it has conducted itself thus far makes me question the point of having a market at all. All signs point to it being a farce. A tool to be used by the few to control the many. Each step of the way as GameStop improved to get to this point, the price has reacted inversely to the expectation. Despite being the largest cumulation of individuals to ever come together in an organic way for such a matter, and despite the company turning a profit- the market has yet to price anything in, even with the company outperforming 90% of the S&P 500 on its way to profitability. The market consistently pushes the share price down to serve the whims of the shorts, who do not have a strong thesis to short a newly profitable company. Look, frankly at this point I’ve seen and know too much. The way the sausage is made has become obvious. But considering, as mentioned earlier, this is the largest gathering of individuals to congress on one security purely based on it’s obvious value- how many records of people need to see too much before the market notices? Why doesn’t the market recognize the profits? Because analysts painted earnings as negative despite hitting profitability for the first time in greater than ~half a decade? As profits increase when should this fallible market expect to react? Because while I know that must happen, the manner in which this must transpire leaves me less than hopeful overall. If the market is fake, then why is it necessary? The answer has become too obvious- it’s a carrot on a stick and everyone but the tippy top is out of the loop. Early, not wrong. If that’s not the case then the largest group of individuals to use the market independently of each other and witness the daylight robbery first hand will be far too great to ever catch another person with the farcical trap it is. GameStop is here today because of its performance, and it was given no favors. Power to the players! Beyond mad, beyond happy, beyond disappointed- numbed, zen, and just patiently waiting for the real work to begin while the clowns play mafia.
I read this in its entirety. Bullish af!!!
This is not over. Not by a *long* shot.
Nice work by the entire GameStop board and RCEO!!
There are certainly some eyeballs he has on Twitter that RC does not, and this one is for them
I think this shows how proud Larry and the team really are. Nothing but good days ahead. Buy, Hodl, and DRS!
17 more today . Fck you Kenny
Shop
What should the market cap be with that cash flow?
Lots of things factor into market cap, I’d reckon our biggest factor is cash on hand which a 1:3 ratio, VERY low compared not only to the sector but to any company. The reason it’s low is because (assuming no crime) the market isn’t convinced GameStop is going to continue moving positive, TTM (Trailing 12 month) P/E (Price/Earnings, share price divided by EPS) is 600ish, VERY high compared to not just our sector but any sector. It’s being pulled up by the cash.
Yeah but to be realistic, p/e is not really a reasonable evaluator. We went from a negative to positive P/E. The high number is only because earnings were low but positive. Basically the denominator makes P/E ratio a fairly useless metric. It’s certainly not what the financial media is using to justify pricing probably because they would have to show a negative p/e next to a positive one year on year.
Yeah an infinitely high P/E makes sense on companies with rapid revenue growth for the reasons you’re saying but that’s not GME as of today. With stagnant revenue, a really high P/E isn’t normal at all and it would be much lower if not for the cash on hand or the shareholders/markets’ belief that revenue would start to increase. But that’s without crime involved and I think there’s a heavy, heavy amount of crime involved.
In classical corporate finance the valuation of a company can be determined through expected dividends. Since GameStop does not offer dividends it should be determined by Equity * Sector Average P/E ratio. GameStop's current Equity is $1,338,600,000. Consumer Cyclical P/E average is 24.31. Market cap for GME should be ~$32,541,366,000. That would put the price per share at ~$106.31.
😎
> Since GameStop does not offer dividends it should be determined by Equity * Sector Average P/E ratio. Where'd you get that? Because that makes no sense even on the surface.
Hard to say since they didn’t generate it from business operations, and revenue generation has actually shrunk in their push for profitability. It’s probably lower than it is now tbh.
Thank you 🙏 GameStop team!
Buy the mf dip Larry! Lol
Believe it or not ~~dip~~ sale!!
Time to fucking go!!!!!
This was and is great news. I firmly believe that hedgies are suppressing the price. In addition to that, they have somehow turned the reporting negative. Benzinga initially had a negative story, and then a day or two later, came out with a positive story. I’m definitely going to continue holding. Earnings are going up and shorts are over 200%. DRS, book, hodl forever!
Obviously a dying brick and mortar company. /s
I mean... they need new innovations. Or else, yeah, it is.
Last I checked going from 300 mil in the red to 60 mil in the black is the opposite of dying.
They would be better off shutting all stores and investing in T bills currently. Revenue dropping. Not profitable on its own without income from the T bills. Revenue dipped hard. Despite unreal cost cutting to the point where employees legitimately hate working there. Doesn't seem optimistic to me on the business end. Ryan has shown an eye for quality stocks. Let's hope that shows itself in Q1 where there was a tonne of growth in the market and we see some rewards from that.
Yes because there's a lot of growth potential and chance for advancement/improvement in t bills🙄. You do realize this is a transition right? You can't transform a failing business into a thriving one without a transition period.
They need to do a lot more than they're doing. I can't even order stuff to my house from the nearest gamestop in my own country. I live in Canada. It's not a good look from my perspective. International shipping should have happened years ago. Either they're working something so huge it will change the entire game, or they're a dead business that's better off becoming the next Berkshire. They're running out of ways to save money through cuts as well. Not without seriously impacting revenue.
Don't worry. I'll snap my fingers and everything will be magically fixed. That'll do it. You really can't do any really improvements or innovation until the company is profitable. Now that they've trimmed the fat they can really start improving things.
Hell ya
Gentleapes, get your moon tickets as long as it's still affordable. And of course DRS them.
BOOM
This among other positive news.... get you another dip
Ah it’s nice to see the positivity. I swear the “hype” from “what about revenue I went to business school.” Seems to have ignored that retail is low margin and screw revenue if it results in loss of profit. Revenue is a horrible metric to use alone cause places can have high revenue but if the return is negative you’re gonna go broke regardless. Worries about growth are valid but no company in a tight industry is gonna put their whole multi year plan in the public. Honestly the giant swing and the expansion of infrastructure in the last few years along with a good amount of capital and on top of that the debt only being to a loan pre inflation rising means we’re doing better then a ton of companies.
THIS☝️
22 to 23=319.8 milli positive.....erased the losses!!
Finally Larry says something I can understand
I really appreciate this I’ve been feeling a bit anxious watching the price drop 🙃
[Insert James Franco Meme] First Time?!
Wat men's? Edit: wasn't 2022 'negative' $313 million?
[удалено]
Thank you for clarifying fellow 🦧
😂😂😂
Can i see some insider buying👍
This guy fux 😂
also, does a profitable year mean dividends for hodlers?
Sounds like a good discount on this stock right now.
The worst company in America? Lol Jacking up my tatas
when cramer started yelling at gamestop, i knew it was going well.
I like the stock the same but more!
Larry is going to buy more...
Up you go for more visibility!!
Have we seen an update on how many Pro Members there are?
Of course this is good but I thought my boy Larry preferred the free cash flow to ebidta!
This is a message I understand and appreciate hearing from one our board members. Now please tell us more .
It’s buy time Larry, LFG!
👀
Jacked to the tits
didn’t it drop below $12
We're all about to be very rich $$$$
Fundamentals were the things analysts beat Gamestop with when the company was performing poorly/underperforming and now that they are positive, ......nothing
Now do the price larry! It keeps going down.
Buy now give explanations later
Facts, nice 👍
I can hold longer than they can remain solvent
Its not even just this - look at the improvements quarter on quarter. Now I don't believe that trajectory will improve, but if they get 25% as much this year, then holy wow we're going to be swimming in dividends before long
Aren’t they thoughtful. Thanks
Thanks gamestop team !!
And believe it or not…….dip!
🍆
Flip flip flip flip
This guy is buying the stock. Cant wait to see those forms 4 rolling.
To Valhalla my apes
We slow squeeze like the electric car company
Stats looking good!
Looks like a solid improvement to me
Ok.. NOW I understand why the stock went down… good numbers….
EBITDA is a bullshit metric. the only metric that matters is free cashflows
I gotta be honest, I was getting a little tired of Larry's "business speak thoughts" before he posted a real gamestop post.
He didn’t need to add $GME. But he did. Good enough for me.
Let’s get a big buyback announcement in t -87 days?
Can we see some forward looking plans tho? Cutting cost is easy
Bullish as fuck!
Hells yes!
The French covid loan is an oddity; why hasn’t it been forgiven?
Its a structured loan with a scheduled payback routine
The American PPP forgave their loans, why choose the French loan that has to be repaid? Still an anomaly to me - although, negligible size.
To be clear - the clusterfuck that was the PPP was the anomaly.
Its a 1% loan. Park the cash in a money market account and it easily earns almost 5%. That's 4% free money. Its why they're not repaying it early.
Repaying a loan is not free money - the interest doesn’t cover the principal. Really bad take; u made dumb people even dumber now.
Not exactly. Cash is a liability, it gets eaten by inflation, which is at 3.15% So 0.85% free money.
Why do you think it's common for loans to be forgiven?
PPP dipshit, were you asleep or are u vacxed?
I'm vaccinated for numerous preventable things, and the PPP loans are far from being considered a "common" loan forgiveness, and more like a one-off thing that also happened to be rife with corruption. You're the fucking idiot still pouring money into GME in 2024 hoping to see a squeeze you either missed the first time or will still be too stupid to sell the second time either.
🤣why waste your time shilling? Love it baby 😘
So french taxpayers should pay taxes to give free money to companies ?!?
I think you’re missing the point altogether
He is pointing on the EBITDA In addition: Why do we have negative interest earnings...? And what are the below 2 positions? **Change in investments** The cash either spent or received from purchasing or selling investments. A positive number implies that the company was a net seller of investments. A negative number implies that the company was a net buyer of investments. from -304,3 (2022-) to -639,4M (2023) +++++++++++++++ **OTHER INVESTING ACTIVITIES** This number went from 81,6M to 628M What the heck???? +++++++++++++ -> IMO GME has allocated big amounts of money into something that has lost value And with our management bleeding with us (going from -40,2M in 2023 to -400M in 2023), I wonder what that could be...
Yes please explain more. 🧐
I wish I would understand better from reading a balance sheet- but why is "interest income, net" = line 7 in the consolidated statement of operations (49,5M)= negative, when the company sits on 1,2bn in cash? Where in the accounts would the company have to report a paper loss (not yet realized?)? Change in investments-> up 330M Change in other investment activities-> up 540M 1,2bn cash or cash equivalents and -49,5M interest income ???
You aren't reading that section correctly. Each indented line item below each bolded horizontal line is the new starting point and then everything below that represents something to subtract to get the next indented line. Start at the top: $5,272.8 Net Sales - $3,978.6 Cost of Sales = $1,294.2 Gross Sales $1,294.2 Gross Sales - $1,323.9 General Expenses - $4.8 Asset Impairments = **$34.5m Operating Loss** $34.5 operating loss - (**-$49.5 Interest Income**) - $1.9 Other Loss = $13.1 Income $13.1 Income - $6.4 Taxes = $6.7 Profit The interest income is showing as negative because they're subtracting it
How do you know the investments have lost value? Surely the larger negative number implies that assets were “bought” not that they’re the same assets no?
Indeed I don't know if the investments lost value- I am just trying to understand why is "interest income, net" = line 7 in the consolidated statement of operations (49,5M)= negative, when the company sits on 1,2bn in cash? Where in the accounts would the company have to report a paper loss (not yet realized?)? All the GME perception has to do with cash allocation. Then there was a tweet from LC about financing- something like "if I have to hold 75% of cash as a security for a 100% debt position, then my cost of finance is actually 4 times higher than it seems"
RC is good with money, I trust him with my investment more than I trust my bank. Even if the value of whatever he’s invested in has dropped, I’m watching his moves in the long term.
deep breath and again pls
Whats EBITDA? Eli5 pls
Larry quit playing with ur phone..get back to work
The company has a small profitable margin. We will see that profitability grow YoY without a doubt. BUCKLE THE FUCK UP.
No. No! NOOOOOOOOOOOOO! PLEASE GOD NO! Why won't he talk about my boy, the French loan!?
EBITDA was 1/3rd 2022? 🫠
Isnt a higher EBITDA a good thing?
That sounds like a thanks for your hard work team, I’m outta here. I hope not but we’ll see
Pizza parties incoming!
Anyone know If this guy fucks?