GameStop: Trying To Grasp The Value, But Price Still Doubly Inflated

Summary:

  • GameStop’s May stock surge was yet again driven by frenzy, but the company’s topline remains weak, with accelerating revenue declines.
  • Management capitalized on inflated stock prices, boosting cash reserves, which now constitute a major part of its valuation, yet the issuance diluted shareholders.
  • The collectibles segment and profitability improvements show potential.
  • Despite optimistic valuation adjustments, GameStop’s per share value still lies significantly below market price, making it a speculative play rather than a sound investment.

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Comical Timing Of Recent Coverage

The timing of my first GameStop Corp. (NYSE:GME) coverage in April 2024 could not have been more comical. Because already in the week following the publication, the fundamentally baseless craziness


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