Gamestop: Intrinsic Value Trumped By Meme Rallies


  • I estimate GameStop’s intrinsic value to be $5.43/share, but the possibility of a future meme rally increases my estimate of GameStop’s value to $17.98/share.
  • Investors should estimate the probability of another meme rally in the future and the peak share price during a future meme rally.
  • I believe there’s a 35% chance of a future meme rally, and I recommend selling out at $40/share if that’s the case.
  • GameStop’s fundamentals remain weak, but they matter little to the current meme rally thesis.

Ascending line graph and list of share prices

Adam Gault


I valued GameStop (NYSE:GME) last year at $5-$8/share (it was trading at ~$20/share at the time). My thesis that consensus revenue growth was too high played out, considering that revenue declined 11% YoY (whereas consensus revenue growth was roughly flat

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