remember though, no one was trying to save Gamestop, so it isn't really a "we should have done it that way!" situation. Everyone was just trying to screw over everyone else, while hopefully personally profiting in the process.
It's true... if everyone would have spent the money that they spent on GameStop stock on actual stuff at GameStop, they probably would have had their first profitable quarter in years. The buyers would actually have something to show for their money as well. Shiny new Nintendo Switches are more fun than a negative number on your monthly account statement.
Socialism for me, capitalism for thee.If anything this just showed how corrupt the system is. The rich play the game all day and the minute the regular people play the game and the rich start losing they start to change the rules or even get bailouts. The fact that they got bailouts is what pisses me off the most. As an individual if you have an investment go south it's tough luck, but just because these are billionaires they get bailed out.
Perhaps dumb is too strong a word, but GameStop didn't benefit whatsoever from the pump and dump. Virtually none of the free advertising you referred to said much about the company itself or its future prospects, and the ones that did always pointed out the business model is still shit. It was all about WSB/retail vs. the pro short sellers.I don't necessary think they were dumb not to sell shares. The backlash they would've received from the Reddit crowd would've been insane. GME received more in free advertising and goodwill from this whole episode than they could probably buy with any amount of advertising dollars. Ryan Cohen might genuinely believe he can revive GME. But you can't do that if the whole world hates your company and your guts.
GME is not in horrible shape financially. I thought they should've sold shares to wipe out their debt early on in the mania. But if they did that at the height of the mania, they could've been crucified by the public.
I owned GME before the PS4 launch, and was happy to get out break even. As usual, I'm bad at market timing and could've booked some solid gains if I had just ridden the 8th gen. console launch window.Honestly, the only way to save GameStop would be to close about 80% of its unprofitable stores and switch over to online ordering for everything else.
Basically, they need to become the next Steam or Epic Games Store before they get crushed by them.
Socialism for me, capitalism for thee.
The false dichotomy is what exists for the book smart who don't realize there is no contradiction in praxis, and the Chinese came to it first because they don't give a shit about idealistic quasi-adherence to "book principles".Socialism for me, capitalism for thee.
Perhaps dumb is too strong a word, but GameStop didn't benefit whatsoever from the pump and dump. Virtually none of the free advertising you referred to said much about the company itself or its future prospects, and the ones that did always pointed out the business model is still shit. It was all about WSB/retail vs. the pro short sellers.
You're right that their balance sheet is decent, but this was a golden (if limited) opportunity to raise some quick money off of a mania. They're gonna certainly need that capital in the future as they'll be shuttering stores in droves (which costs real money in breaking leases and severance pay).
The main concern besides market timing would be the SEC; maybe the board considered an equity raise and passed. Since you've been paying attention, shady fly-by-night corps and SPACs have raised tons of fresh capital over the past 10 months, and hardly anyone has complained that they're risking bad press by selling shit. Just for one small example, Nikola has settled into a trading range after it was exposed as a borderline fraud operation. Pissing off Redditors or Robinhood traders is the least of GameStop's concerns.
I owned GME before the PS4 launch, and was happy to get out break even. As usual, I'm bad at market timing and could've booked some solid gains if I had just ridden the 8th gen. console launch window.
But anyway, downsizing by 80% wouldn't help them because their business model is fundamentally obsolete, and they have no replacement. They were basically a lucrative pawn shop, but their ability to acquire physical media is nearly gone. People keep referring to Chewy and Ryan Cohen, but there's literally no comparison between selling pet supplies and video games.
You advised shifting to a Netflix business model, but they've already tried PC digital downloads years ago and failed. In reality, there's 800 lb. gorilla Steam and a cluster of also-rans (for mobile and consoles, the 1st party stores dominate). GameStop has no special advantages that enable allow it to pivot to establishing a successful alternative digital store and if they had, they would have done so years ago when the writing was already on the wall. There's no such thing as a legally sanctioned third party digital store for game consoles.
Up 9.5+% right now premarket
I wanted to reply with something like "maybe they can find a niche for used games", until I realized that everyone downloads their games now and there will probably no longer be much of a market for used video games two years from now.
I saw the CNBC article this AM saying that the original pump to $350 wasn't by retail investors. Yes it sparked from them, but institutions bought the most that pumped to $350-410.I agree that the shorts have exited for the time being. Now it's just WSB trading among themselves now.
Look at trends. Physical media are dying. You'll look back while 'physical disc' purists are like less than 1%.Consoles are about half to more than that digital but def not everyone. Sony for their most recent quarter said 53% digital.
Look at trends. Physical media are dying. You'll look back while 'physical disc' purists are like less than 1%.
Look at trends. Physical media are dying. You'll look back while 'physical disc' purists are like less than 1%.
3 halts already this morning. I don't remember them halting the stock when it was in free fall the past couple of days. But now Robinhood lifted trading on GME today, we must halt at any sign of life in the stock. lol
LOOK AT THE TRENDSHere's Sony's financial statement: https://www.sony.net/SonyInfo/IR/library/presen/er/pdf/20q3_supplement.pdf
43% digital in FY 2018, 55% in 2019 and 74/59/53% in FY 2020 (the Winter quarter was Sony's FY Q3)
That's the rules, there's bull circuit breakers as well.
You think retail has the billions to move GME like it did later in the mania? Retail can get the ball rolling but you need the whales to keep it going it. Retail can definitely add to the fire once the ball is rolling full force by buying call options and forcing gamma squeeze. But we're like minnows swimming with whales and sharks.I saw the CNBC article this AM saying that the original pump to $350 wasn't by retail investors. Yes it sparked from them, but institutions bought the most that pumped to $350-410.
That's retarded. About as retarded as the guy who got WSB logo tattooed on his butt or that guy who drank his own piss.this is a work of art
It's sterile and I like the taste.That's retarded. About as retarded as the guy who got WSB logo tattooed on his butt or that guy who drank his own piss.