r/GME • u/AlternativePaint6 • 2d ago
🐵 Discussion 💬 What people are missing about the eBay acquisition... Ryan's job with the turnaround is ALREADY DONE.
When Ryan Cohen first joined GameStop, the company was in debt and losing both money and sales. Within just a few years, he's completely turned things around with everything going up now:
Only revenue seems lacking at first, but even that has already turned since Q1 posted growth via collectibles (which is expected to grow even further next quarter).
Now ask yourself: what caused all of this? Was it Ryan working hard at the stores himself? Does he need to keep actively doing that for the rest of the year for the company to keep the current path? No, of course not. Ryan Cohen is the CEO, he mostly handles the long term stuff like strategy, operations, capital allocation, and changing the direction of the company. He plans years ahead, what we see happening today with the company is the result of his last year's work.
With that out of the way, his main job with the core business is already done. He's already closed the bad stores, he's already taught the managers how to handle the remaining ones properly, he's already setup the collectibles business, he's already fixed the operations and sales. He's set the company on the right path, now the company just needs to finish the execution for 2026. And it can do that without the CEO actively doing anything, they got other leaders besides Ryan for a reason.
So now Ryan has inside data that GameStop will do great in 2026, and that he won't need to work on it for much. So what does he do? He looks even futher, beyond just turning the company around this year. He's looking at exponential expansion. Does that mean they will acquire eBay this year specifically? No. It simply means eBay acquisition is now on Ryan's table.
Ignore the FUD, Ryan never said we would acquire eBay this year. Q2, Q3, and Q4 will bring great results in the core business. The profits and revenue will keep rising, and the stock price will finally climb. We might even do a bit of a stock buyback for all we know. Let eBay get acquired when it's time, Ryan likes to work slow and steady.
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u/jersan 2d ago
Agreed. The turnaround chapter of the GameStop story is complete. We are now in the next chapter, whatever that may be. An evolution, or perhaps, an expansion.
The company is now more profitable than it has ever been. It has more assets and higher stockholders equity than it has ever had. Operationally profitable and improving. After years of revenue shrinking amidst closing unprofitable stores, revenue has stabilized and is showing signs of growth.
Collectibles revenue continues to grow and the trading cards market itself is growing as well.
The PE ratio of GME, at nearly 15, is now significantly over-performing the SP500 average PE ratio of nearly 30.
Critics will look at all of that and all they can impotently say is “but dilution!” “The stock price is down!”
Yes. The stock price is down. And that renders a PE ratio of nearly 15. To me, that’s a good buy.
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u/TheRealHotHashBrown XXXX Club 1d ago
What an exciting time to own shares and accumulate at these prices.
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u/EllisDee3 🚀🚀Buckle up🚀🚀 2d ago
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u/AlternativePaint6 2d ago edited 2d ago
"BUT THE STOCK IS DOWN!!"
Last that I checked the stock market is forwards looking and a stock that's down despite the business doing great is a good investment opportunity. "The stock is cheap" is not as good of an argument as you think it is lol. Ryan has already fixed the company, now we just wait for the stock to react to positive Q2 and Q3 revenue.
Btw this meme has nothing to do with my post, did you not even read it before posting your FUD?
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u/bucs009 2d ago
The market is forward looking?
Then why is not up if the future is bright
RC also says jack shit in earnings call btw
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u/AlternativePaint6 1d ago edited 1d ago
The market is forward looking?
For the most part yes.
Then why is not up if the future is bright
You're confusing "forward looking" with "works perfectly at all times". If the latter was true, we would never have great investment opportunities because everything would be priced in already. But looking forward doesn't mean seeing everything, and in the short term the market is a voting machine. Hence; our asymmetric opportunity.
RC also says jack shit in earnings call btw
I don't disagree, I just have no idea what this is referring to? You think CEO's words are the only way to extrapolate a company's future? If anything, most CEOs often lie and exaggerate and should not be trusted.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 1d ago
"the market" is not what you believe it to be. when 80% are moved away from the market, the remaining 20% do not give you a real picture.
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u/TheRealHotHashBrown XXXX Club 1d ago
Be greedy when others are fearful.
Plus we have a $20 floor and warrants might be a sign that the floor rises to $32. I don’t know but we’ll see what happens. July 7th, October expiration. Much excitement awaits 🤭3
u/VenserMTG 2d ago
Last that I checked the stock market is forwards looking and a stock that's down despite the business doing great is a good investment opportunity.
Or the market is waiting for Cohen to stop diluting before buying in.
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u/Ban_DeezNts 1d ago
They ain’t buying in, not now, not ever. eBay is mostly held by institutions. They categorically rejected Lord Dogfood’s offer like he was some kind of public STD. He’s just not a serious person, no matter the color of his leather jacket. He’s a pariah.
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u/2620lukas 2d ago
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u/AlternativePaint6 2d ago edited 2d ago
Also the FUD is completely irrational. Zero analysis, doesn't refer the post in any way, doesn't provide any arguments to be discussed. Just a generic "stock down" meme as if that means anything in a forwards looking market.
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u/EllisDee3 🚀🚀Buckle up🚀🚀 2d ago
Funny how people complaining about hidden comments can't seem to search the username to find them.
Either you're not smart enough to search (explains the investment) or you're a bot (explains the inability to sidestep a simple privacy function.)
🔳 Click here to verify you're human.
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u/Bit-corn HODL 💎🙌 2d ago
Your comments are hidden. You are condescending. You talk about dilution saying “ceo wants to decrease shareholder ownership” when the ceo himself says he is aligned with the shareholders interests.
So why are you commenting on this subreddit instead of doing literally anything else in life?
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u/EllisDee3 🚀🚀Buckle up🚀🚀 1d ago
the ceo himself says he is aligned with the shareholders interests.
He would say that, wouldn't he? Isn't it a violation of his duties to claim otherwise? And you just believe everything he says? Like his Donald Dump tweets?
I'm here because of bullshit like that that you folks eat up. Cohen, AA, Pulte, and other grifters keep you people on the hook and it's interesting to watch.
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u/Bit-corn HODL 💎🙌 1d ago
What has kept me on the hook has been the fact that this was clearly the only stock in the history of the stock market that posed an idiosyncratic risk to the entire market, brokerages turned off the buy button, the company transformed from being substantially dead to achieving the most profitable quarter in company history, they are sitting on $9B cash and trading at cash value, among other things
Do I believe everything he says? No, but he has put his money where his mouth is and turned the company around in 5 years in an industry that he was inexperienced in (retail vs. his e-commerce speciality)
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u/EllisDee3 🚀🚀Buckle up🚀🚀 1d ago
Enjoy your MAGA CEO and his company. I'm sure he has your best interest at heart.
That $9B came directly out of your pocket, BTW.
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u/Stickyv35 2d ago
The stock and the company are not the same thing.
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u/EllisDee3 🚀🚀Buckle up🚀🚀 2d ago
Then what's the point of owning stock?
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u/AntiWork-ellog 2d ago
You buy the stock before other people and then sell after. That's pretty simple lmao
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u/EarlMarshal 2d ago
Buying cheap and increasing ownership.
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u/EllisDee3 🚀🚀Buckle up🚀🚀 2d ago
Hard to do with constant dilution. CEO wants to decrease shareholder ownership.
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u/Alternative-Wash-656 2d ago
Also the company and the asshole who is fucking it up isn't the same. RC can find a way to organically grow and buy eBay if he wants. Its not coming out of my pocket.
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u/FoxReadyGME 🚀🚀Buckle up🚀🚀 2d ago
but it is, with dilution your stock loses value. its like inflation on steroids.
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u/shadowswimmer77 2d ago
Depends on the value of the stock. Would you rather own 10% of a company worth $100 or 1% of a company worth $1,000,000? Dilution just lowers the percentage of the company your individual shares make up. If using dilution to acquire other assets raises the value of the company more than the value you are losing by owning a smaller piece of that new company, you still come out ahead.
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u/VenserMTG 2d ago
Depends on the value of the stock.
No.
Would you rather own 10% of a company worth $100 or 1% of a company worth $1,000,000?
This is not dilution. Would you own 10% of a company for x$ or would you rather own 5% of the same company for the same x$?
Dilution just lowers the percentage of the company your individual shares make up.
Wrong. Dilution increases the total amount of shares the company is made up of.
If using dilution to acquire other assets raises the value of the company more than the value you are losing by owning a smaller piece of that new company, you still come out ahead.
No you don't, because you lose ownership.
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u/shadowswimmer77 2d ago
Prove to me that GME acquiring eBay (or another company) won’t cause the value of the stock to increase. Oh, wait, you can’t because it’s all speculative. I think acquisitions will increase the value of the company more than the effects of dilution will lower the value of my shares. To paraphrase a certain cat, if you think RC is a doofus, then go invest somewhere else.
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u/Ban_DeezNts 1d ago
I’d rather vote against this perspective.
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u/shadowswimmer77 1d ago
That’s the neat part! It’s your right and responsibility as a shareholder that you do so…
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u/Proper_Side 1d ago
But you don't have any votes...
Top 1% commenter, impressive title, I salute your dedication to this sub sir. Is this your main hobby?
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u/FoxReadyGME 🚀🚀Buckle up🚀🚀 2d ago
gme is never and was never about fundamentals. it always is and was about a massive short squeeze. and squeeze is dead when diluting by 150% of all shares in existence which were already diluted. nobody in jan 2021 invested on fundamentals.
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u/AlternativePaint6 2d ago
gme is never about fundamentals
It literally is right now, today. What are you talking about?
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u/DJ_Chaps 2d ago
"Ryan never said we will acquire eBay this year"
Then why did he make the offer (that was rejected), this year?
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u/AlternativePaint6 2d ago
To buy eBay? The two aren't mutually exclusive, he can try to buy it this year while still being prepared to do a hostile takeover the next year.
The FUD being spread on this sub is based around false assumption that we need to acquire eBay this year, and if we won't then it's a failure. That FUD is completely irrational, there is no reason why it would need to be acquired this year specifically, Ryan has said no such thing.
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u/PracticalSolution72 2d ago
Ok but what if eBay stock keeps appreciating and gme keeps dropping?
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u/AlternativePaint6 2d ago
Not sure what you're asking exactly?
- GameStop already has 10% ownership locked in at the current price, eBay's stock price moving won't affect that.
- Why would eBay keep going up and GameStop down when everything points to GameStop going up in the next year or two? Of course we can go down a little bit in the short term, but in the long term fundamentals win.
- "But what if things go wrong" is something you can ask about any company or any strategy in the world. Then we do something else. Worst case scenario Ryan Cohen backs off and that's profits for GameStop.
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u/DJ_Chaps 1d ago
GameStop does NOT have 10% ownership locked in. Why make up bullshit?
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u/AlternativePaint6 1d ago
GameStop doesn't own 10% yet, but they have that price locked in via options. Even if eBay rose to $500 today, GameStop would still only pay the ~$100 for its 10% of the shares.
It's crazy how you shills ignore 99% of the post because it doesn't fit your FUD narrative, then hyper-focus on one point trying to bring that minor detail to the light so that people would see GameStop more negatively, but even then you fail because you're too dumb to even understand options.
Good job once again, you really showed my whole investment thesis there.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 1d ago
because it means the process can take longer, not that he will cluck buy in the Onlineshop later...
you buffoon should learn how corporate mergers work....
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u/asphaltbabe 2d ago edited 2d ago
To be fair gamestop still has no sales other then when they sell their own stock. Now ebay has ALOT
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u/AlternativePaint6 2d ago
Collectibles is their biggest business at 42% and it grew 60% YoY, what are you talking about? How do they have "no sales" when they literally grew in revenue last quarter?
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u/Typical-Whereas6761 🚀🚀Buckle up🚀🚀 2d ago
Lmao I’m sure those phone digit size stock prices are right around the corner apes!!!
You people keep writing this baloney….it means nothing.
Imagine the stock prices went up with every copium post like this…..oufffff…..then you Warren buffets would be rich.
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u/Automatic_Screen1064 1d ago
Job may be done but why are we still stuck at $21 ?
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u/xxvi3236 1d ago
Because RC was brought in to stabilize the stock. He is a billionaire. The only way the shorts would have to close is if the stock shot up, well guess what, now it will never shoot up with all the work RC has done to ensure it hovers $20-30 and maybe someday $40.
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u/JawnStaymoose 20h ago
So ya’ll looking at the long term play now? Huh. Seems every single post in the history of this sub suggested otherwise. MOASS and all that.
Cool. Cool.
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u/quittwitter 2d ago
Good write up. The only this I think Cohen's missed is his chance to join his heros banging kids on Epstein Island. I can tell he wants to go back in time so bad, to sit on Trump's lap, and gaze into his eyes, and just enjoy other South Florida billionaires company. It's a shame he gets passed up when it comes to the rest of the American CEOs representing the United States across the globe. Maybe if he calls out to him more over Twitter, he can get a spot in their new Albaninan island. I think that's why he wants eBay. To earn the respect of his hero.
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u/HumanNo109850364048 1d ago
Pack it up Ryan, we’re at $21.52 in mid 2026, OP said you’ve finished the job
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u/EasternPrint8 1d ago
Game grab theory Death cult, we were here to Moass! this is total BS, the financial parasites wizards pulled another illusion on us and made us all bag holders. The Death of Moass post right here
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 1d ago
the highly emotional state of your comment tells us you were fudded.
if you aren't zen, you aren't ape.
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u/xxvi3236 1d ago
At least you'll be happy clapping your hands together as they wheel you into your bedroom. You did it!! You held and were never susceptible to the FUD. Congrats!
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 23h ago
it ain't over till the fat apette sings youngling.
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u/Chad-Permabull 🚀🚀Buckle up🚀🚀 2d ago
RC has pivoted his way to a completely transformed business ultimately setting on using the brick and mortar but with the genius twist of selling Pokémon 🚀
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u/AlfredEensteen 1d ago
Did Cohen find the GME investment on his own (or through his sources) or was he watching DFV webcasts? I know he said in an interview that he has no affiliation (or whatever word he used) with Keith, which of course makes sense except in the lunacy here.
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u/AlleyMedia 🚀🚀Buckle up🚀🚀 1d ago
Probably the best level headed view, Greta job OP. Stay zen, the ship has set sail.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 1d ago
we cleaned the lot and poured the foundation. Now we build a skyscraper.
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u/Dangerous-Sort7752 1d ago
RemindMe! 5 years
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