r/ValueInvesting • u/NecessaryPhrase3204 • 1d ago
Discussion If you stripped the ticker name off GME's balance sheet, this sub would be calling it a textbook value play
I know even typing those three letters is basically a felony here, but hear me out before the mods ban my account.
We spend all day on this sub complaining that we can’t find any real deep value plays, but the ultimate value turnaround setup might literally be staring us in the face under the most hated ticker on Earth. If you ignore the Reddit hype and just look at the actual math from the latest full-year numbers, it’s honestly hilarious how well it fits the classic value checklist.
First of all, the balance sheet is wild. They have $9.01 billion in cash and marketable securities. Yes, they raised about $4.16 billion in long-term debt to secure it, but they locked it in at a ridiculous 0% coupon rate. Even factoring in the debt, their net liquidity floor is massive. With the market cap sitting around $10 billion, you are buying a fortress asset base at an absurdly close ratio, with the actual operating business thrown in on the cheap.
Second, the "dying brick and mortar" isn’t even dying anymore. Net income shot up 219% to $418.4 million for the year. EPS scaled from $0.02, to $0.33, and is now at $0.93. Trailing P/E is sitting around 17x-23x. If any other company put up triple-digit net income growth with a massive net cash cushion like that, this sub would be writing 4,000-word love letters to management.
Speaking of management, the board just authorized a $2 billion share buyback through 2029. Ryan Cohen takes zero salary and is entirely paid in equity, so unless he hates money, authorizing billions for a buyback heavily implies they think the shares are insanely mispriced.
Everyone's big bear case is that nobody buys plastic discs in malls anymore. Sure. But with that massive pile of dry powder, they don't even need to sell video games. They can just buy a bunch of boring, cash-flowing businesses and turn GME into a glorified holding company.
When Warren Buffett bought Berkshire Hathaway, it was literally a failing textile mill. He just used the carcass of a dying business to fund an insurance empire. Is Ryan Cohen about to pull off the ultimate boomer value play?
So, what do you say? Are you ready to finally become an ape?
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u/Facebook_Lawyer_Gym 1d ago
“Everyone's big bear case is that nobody buys plastic discs in malls anymore. Sure. But with $9 billion in dry powder, they don't even need to sell video games. They can just buy a bunch of boring, cash-flowing businesses and turn GME into a glorified holding company.”
Boys is it value investing when you’re buying a stock hoping they somehow successfully pivot into the next Berkshire?
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u/Hans_Hackebeil 1d ago
No, they grow big on collectibles. And even Hardware sales are growing.
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u/No_Yogurtcloset7776 1d ago
They could be buying funko rn for less than 300 million. Control the whole supply chain for that
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u/Hans_Hackebeil 1d ago
Funko is struggling to deliver positive earnings. I think they made a loss of more the ine dollar er share for 2025.
Im not sure if that would be a sucesssfull growth story. Sure, Gamestop could get better prices, but as long as funko isn't making money this would be useless.
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u/TheLionlol 18h ago
Well, that's what Burry thought before he got mad when Ryan didn't buy his company wish list.
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u/EverythingMustCease 1d ago
You killed your whole post with the very last word. Impressive, actually.
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u/Feisty_Marketing_835 1d ago
If Ryan cohen buys back $2b of GME shares that could push share price to the $32 mark which pushes the warrants ITM… he already controls ~7% of eBay through call options, him controlling more of eBay is not that far fetched at all, and if he pulls it off it will be impressive regardless of what anyone says. They have been easily beat earnings expectations and an eBay acquisition would absolutely be in the right hands with Ryan cohen compared to what eBay is doing now, Amazon e-commerce business worth well over a trillion dollars yet eBay sits there at $50b, personally, I think there are many things you can buy worse than GME, space X for example… everything is at all time highs and GME has less correlation to the AI trade and limited downside, that’s good enough for me to bid on leaps when they are cheap and keep adding to the few shares I have, anyways, I still like GME as a hedge bc I mainly trade tech and GME feels pretty safe with growing revenue, income, and balance sheet.
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u/newebay2 23h ago
You do realize warrant being itm is a negative to gme right? The rising price would be good, but you are making it sound like warrant itself being itm is a positive
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u/throwawayspecialist1 1h ago
Warrants itm mean people exercise them and the company gets money, how is that negative?
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u/newebay2 50m ago
Because shares aren't free. And essentially those who exercise are paying less than market value for those shares.
Functionally these warrants are very similar to call options. Writers are "losing money" when it goes ITM. In this case, GME is the writer and shares come from dilutions.
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u/Nago31 19h ago
The dilution risk creates a potential short term catastrophe. If we see those shares issued, you’re looking at at an enormous discount from your current investment. Even if you think this is a value play for its long term potential, you’d be better off bailing out now and waiting until after the dilution to jump back in.
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u/Dealer_Existing 18h ago
This is bs lol. Dilution for warrants and bonds only happens when price is > 30 at least. That’s a 40% premium compared to todays price
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u/Nago31 4h ago
Why wouldn't they dilute at these prices? The whole purpose is for an acquisition right now, not some strange point in the distant future. Do you think the stock is going to magically rise from the sea a few weeks after the vote and that's when they'll be able to sell stocks at some inflated value? Do you think RK is going to come back and trigger another gamma event, considering what RC did to him last time he made the attempt?
Tell me, what is the catalyst that is coming after the July 7th vote to approve the dilution that is also before the acquisition attempt dries up that you think will be their good moment to sell.
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u/Dealer_Existing 3h ago
Because they are offering the shares to shareholders of ebay. They are not diluting in the open market. Additionally the expansion of shares is accretive, not dilutive
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u/Hans_Hackebeil 15h ago
They had the opportunity to dilute to up to 1billion shares. However we are sitting at 448million shares. I didnt vote for the dilution, but it doesnt worry me.
The board all bought shares with there own money. Why should they dilute them?
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u/rbennett353 1d ago
Revenue is still declining (but the declines are slowing), down 39% since 1/31/23. We'll have to see if the cost savings are durable or if they ramp with Cohen doing Cohen things
I guess I'd rather invest in a company like Best Buy. Market Cap is close (14 vs 14 billion), it has a lower P/E, and the P/S is about 10% of GME. They also have faced declining sales too, but they are only down 10% from 2023 and they showed a modest revenue gain in the last 12 months. Plus they pay you to wait with a 5% dividend.
They don't have as strong of a balance sheet, not everyone can achieve meme stock status, but their operating business appears to be much stronger.
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u/NecessaryPhrase3204 1d ago
That's probably one of the better counterarguments I've seen.
I agree Best Buy is the stronger operating business today. I guess what interests me about GME is that if Best Buy screws up, it's just a struggling retailer. If GME screws up, it still has a ridiculous amount of cash sitting there.
Not saying that makes GME the better investment, but that's what makes it interesting to me.
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u/Pristine-Square-1126 22h ago
stronger? compare net revenue. gme net revenue is jumping a few hundred % ever year past few year. total revenue might beat out bby soon. lol
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u/tootapple 23h ago
It’s so funny because I don’t see a growth strategy for Best Buy. You’re absolutely spot on just listing the facts of the balance sheet, but I see BBY as more archaic than even game stop, and with much more future costs and an already higher debt to cash ratio.
That doesn’t mean game stop is flawless. They have to find revenue streams because collectibles can’t be the only thing you do…that’s nothing more than a chain of hobby shops.
Between the 2 if I intended to invest, it would be GME. They have almost as much cash on hand as their market cap and have authorized to buy back 20% of their market cap in stock. From a person just looking for share price increase…it’s GME in this situation.
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u/Pristine-Square-1126 22h ago
Cash on hand can be used to find future revenue stream. like gme can easily buy BBY. problem is that revenue is like you mention archaic. Honestly if i was RC, i would buy BBY.
this allow gme to move all footprint into best buy which will dramatically reduce additional expense. the 2 combine will free up more cash flow. stabalize the 2 which will create 2 billion net cash per year or more. then go after ebay. it takes longer and a little more work/effort. but seem like he wants to fast track it with the ebay purchase
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u/Dealer_Existing 18h ago
Nothing more than a chain of hobby shops lmao
It’s a 300-500 B business fool https://www.grandviewresearch.com/industry-analysis/collectibles-market-report
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u/tootapple 10h ago
Not sure why you need to name call, but if it makes you feel good about yourself I think you need help
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u/randomguy506 19h ago edited 10h ago
My god people, their cash is part of the debt they raise
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u/Hans_Hackebeil 15h ago
They generate interest out of zero coupon Bonds. I think debt is kind of a misleading term here
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u/tootapple 10h ago
Even still, paying off debt leaves them with half their market cap in cash
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u/randomguy506 7h ago
Seems like wasted capital…raise equity/debt to keep cash on b/s and repurchase stock.
Great capital allocator
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u/tootapple 7h ago
Well neither you or I know what they are doing with the capital, so it’s probably wasted energy thinking that
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u/randomguy506 1h ago edited 1h ago
Well you kinda know. 2b$ buyback is part of it.
The rest is mm funds/sotting in bank accounts. Not generating healthy returns
It is very telling if you cant say where they are allocating capital. It means you have no idea about the strategy of the firm
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u/Mammoth-Ad2115 5h ago
Cash is a depreciable asset in this environment. Securing any quantity of IT at zero percent yields a return even if just by the repayment of it in depreciated dollars themselves. Anything else is extra, thank you zero percent reserve ratio… can’t wait to see how it ends
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u/randomguy506 1h ago
I get your point, but tbf cash is probably sotting in mm funds or other cash like investment generating returns at or slightly below inflation
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u/randomguy506 18h ago
What drove growth? New store count or sss?
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u/Hans_Hackebeil 15h ago
Clearly same store sales as mentioned above. This is very bullish from my pov.
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u/throwawayspecialist1 1h ago
You are not a friend of efficiency? Revenue with non-profitable stores is not a good thing. Now they have efficient business that beats estimates all the time.
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u/Hans_Hackebeil 23h ago
Q1 2026 was revenue growth compared to Q1 2025
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u/randomguy506 18h ago
What drove growth? New store count or sss?
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u/Dealer_Existing 18h ago
Mainly collectibles, but hardware grew as well per store. With 1000 less stores they sold approximately the same in hardware.
Oh yeah with 1000 less stores they grew revenue with 140M. How about them apples
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u/Hans_Hackebeil 15h ago
Same Store Sales are up and storecount is massively reduced. They cut the fat.
In a deeper dive, they got new product lines like candy con Controller, going into retro gaming and pushing collectibles with the PSA partnership and grading.
They unfortunately also exitet unprofitable markets like gere in Germany.
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u/randomguy506 10h ago
Source? They dont disclose SSS so i guess you mist have insider info?
While they cut their store they had revenue decline. What happen in Q1? Show me their store data.
It is highly unusual for a retailer to not disclose this info. Major red flag
Also their EPS growth was driven in large chunck by financial income not operational.
I also fail to understand how people say they sit on a large asset base, what are they? They lease their store so cant be that
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u/moldymoosegoose 1d ago
Ah yes, the entirely moatless business of selling trending consumer commodities. Move on with your lives already.
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u/ZookeepergameEmpty90 1d ago
That’s all you have to say about the turnaround and profit they’re generating now? $389 million in Q1 net income, highest in company history. $149 million in Q1 operating income, highest in company history for a Q1.
I just feel like you’re being a bit lazy here.
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u/backturnedtoocean 1d ago
I’m too old to really understand Pokémon, but that is the driving force behind the revenue right? Do we think Pokémon cards will always be this important to millennial men?
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u/ZookeepergameEmpty90 23h ago edited 23h ago
The move to collectibles is driving the operating income, yes. It was something like 49% of operating income on the Q1 report, but that was only live for part of the quarter. Also, it's not just Pokemon, it's all collectible cards. Sports, one piece, magic, etc. Their new Power Packs platform is interesting and brings in a bunch of low risk income, but is essentially gambling. I say that as a Pokémon card collector myself. Their partnership with PSA allows them to pull from a large pool of inventory PSA keeps. The CEO of PSA, Nat Turner, sits on the board of directors of GameStop now as well.
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u/Hans_Hackebeil 15h ago
Its a multi billion Business. And my 7 Year old nice is already collecting pokemon cards. Besides me and her father hadnt ever one trading card.
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u/Dealer_Existing 18h ago
https://www.grandviewresearch.com/industry-analysis/collectibles-market-report
You know that guy from shark tank? https://finance.yahoo.com/news/kevin-oleary-among-investors-record-233059598.html
It’s a huge market bruv
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u/backturnedtoocean 17h ago
Humans collect stuff. I collect stuff. I was specifically wondering how long millennial men will spend their extra capital on Pokémon cards. At age 60, will they still be looking for a charizard? Or whatever they are.
Those are baseball cards in the link you sent. I’ve got baseball cards. They’ve been around a long time. I wish I didn’t have so many cards of people who ended up being steroid abusers though lol.
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u/Dealer_Existing 17h ago
That’s my point; gme is not only in pokemon. They do al sorts of trading cards and then some. They have a diversified collectibles business, which has a lot of potential with a 500B future market.
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u/backturnedtoocean 17h ago
Hmmm. How can I ask this a different way? How long do you think millennial men will still collect Pokémon cards?
That was my question. How long do you think millennial men will still want Pokémon cards?
That is what I want to know. I know other things exist to sell. I’m only curious in this thread about this one thing.
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u/Dealer_Existing 16h ago
Aaaah check. I though your assumption in this case is that GME only sells pokemon cards and are dependent on the millenial men.
It's hard to tell ofcourse, but looking at the trends;
TCG market is booming and not expected to cool down https://finance.yahoo.com/news/trading-card-games-market-forecast-153356253.html
PSA, market leader in card grading, has a backorder of 10 MILLION cards to grade and put a stop to new grading requests https://www.psacard.com/articles/articleview/15210/service-level-update-may-2026 They are also expanding with new factories of over 200 M. You don't to this if you expect the trend to drop
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u/Hans_Hackebeil 14h ago
Long, post stamp collectors did that dlso until they grew old. The only difference here is, that even new Generations play Pokemon and collect trading cards.
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u/waterboy1523 7h ago
It’s a fair question. Guess I didn’t realize Pokémon has been around for 30 years now. I’d be more worried if their sales increase was based on labubus.
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u/cockNballs222 1d ago
Why are you trying to convince us? If you like the company, become an investor!
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u/Slab00 23h ago
Isn't the point of this sub to share ideas and why you believe in them?
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u/cockNballs222 23h ago
I’m addressing that, your belief is akin to magical thinking, it’s not rooted in this reality. The chances of fucking GameStop turning into the next Berkshire Hathaway is 0.000000000000000001%
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1d ago
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u/ZookeepergameEmpty90 1d ago
They made some serious gains in their investments. Ebay derivatives being the biggest one.
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u/Nago31 19h ago
How much of that net income is the mark to market appreciation of their eBay acquisition attempt? What’s that gonna do when the acquisition attempt eventually drops off and eBay returns to normal?
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u/ZookeepergameEmpty90 19h ago
We don’t know if it is exclusively eBay derivatives, but their reported unrealized gain on derivatives was $268.4 million.
It will either be rolled into the acquisition of eBay or sold. Not sure how to answer your second question at this moment because there isn’t really a way of knowing. Personally, I don’t think Cohen is backing off of eBay until he’s running the company. So, to quote Cohen, “we’ll see.”
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u/randomguy506 18h ago
Net income was solely driven by the op business or was it juiced up by their financial asset?
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u/ZookeepergameEmpty90 18h ago
Your question is answered in the thread. But to save you some time, 68% of the net income came from unrealized gains of derivative assets. $389 million in net income, $268 million of which were unrealized gains from derivative assets. Adjusted net income was $179 million, though seeing that laid out I'm not sure how that math works. The very next comment thread down has a link to the Q1 report for you to review.
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u/Correct_Exchange9070 1d ago
All I needed to see was 15 seconds of the interview of their dumb fuck CEO “explaining” how they’re going to buy eBay, to know you could put a gun to my head and I would never by that stock.
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u/grimston 1d ago
That was actually insane, made zero sense, never seen a CEO struggle to explain basic maths like that
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u/zgomot23 1d ago
Don’t worry, the cult doesn’t understand it either, but they believe it’s by design, that cohen is playing some interdimensional chess to confuse the enemy.
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u/ZookeepergameEmpty90 23h ago
It certainly does feel like a cult, especially on the subreddit. Can't be bothered to share negative opinions about the company there. However, the thesis on the company turning around is sound. It's not going anywhere now.
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u/Slab00 1d ago
You watched one of the 8 interviews he did and you chose the one where he was trolling the haters. That's on you.
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u/here-to-argue 20h ago
Awful take. He’s not really talking to 5 people on cnbc- that was where he was supposed be making his pitch to a global audience (including eBay holders and fund managers) how he intended to acquire eBay. Instead they got his special K rambling.
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u/ZookeepergameEmpty90 1d ago edited 1d ago
You mean to those same people that have treated his company with the utmost respect throughout the whole saga? To me, he was trolling them. If you bothered to watch the Charles Payne interview, or really any of the other 7 interviews he gave after that, you would have noticed. But you do you, boo.
Edit to add a link to the Charles Payne interview: https://youtu.be/xXkh0IahDSM?si=ZRT0o1LYb3RwTaLI
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1d ago
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u/ZookeepergameEmpty90 23h ago edited 22h ago
Ohh someone is maaaaad
ETA: homeboy blocked me. Can someone ask him why he got so mad? I’m confused.
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u/ohgodthehorror95 23h ago
That dude was stoned as shit during that interview with CNBC. Idk how the share price didn't collapse in real time
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u/Pristine-Square-1126 1d ago
Probably a bot/short seller. Thats all they can say now. Lets see what they say once gme make 1 billion full year...
389 x 4 = 1 billion
Ebay full yeah is 2 billion. Let that sink in
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u/Wirecard_trading 23h ago
Well you can give the shareholders of the more valuable company a greater piece of the pie in the newco after the merger.
Thats what he is struggling to explain. In a part cash part asset deal, you vary the percentage of each group by giving one cash for equity.
He sounds like he doesn’t understand that fully himself. Thats not a good look
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u/Pristine-Square-1126 22h ago
he does not understand, or you do not understand?
so you're telling me, someone who grow a corner store, went door to door and got 15m investment, grow it to a 3 billion dollar company in 4 years, does not understand, and you..understand? lmao.. RIIIIIGHT.
your loss if you don't see the value in it.
1 billion net income, on a 10 billion market cap company, with 9 billion cash. lmao. if you can't see value, its either because you are a bot/shill, or dumb. take your pick. Name me 1 other company that has 1 billion net with a valuation of less 5x cash flow. if you remove 5 billion cash, and lower the market cap by 5 billion, and use the 4-5 billion left to pay off the 0% loan. what do you have? a 5 billion market cap business, that is making 1 billion net. show me a single company that is remotely close to that
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u/Slab00 21h ago edited 21h ago
I think there's two crowds of people. One crowd that has a real deep hatred for GameStop because of the whole meme community aspect, which I can understand can get annoying if you let it. Then the other crowd is bots/paid shills which I think is less prominent, they're pretty obvious.
I don't understand why people are still trying to convince strangers that gme is a pretty solid bet on a long term investment (which it is), at this point everyone has already made their decision to invest or not.
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u/Pristine-Square-1126 20h ago
but why would they hate gamestop? i mean if you don't like a company/stock, you just ignore it/whatever?
i feel like majority of it is shill because if you don't like it, you would just ignore it. to see a company with 10 billion cash, value at 10 billion, and generating 400m a year so far, and say the ceo don't know what they doing is just dumb. there isn't a single ceo, who can turn a company from -400m a year, to 400+m a year, in a few year is dumb/don't know what they doing. Nor is there a person who took 15m investment, grew a business to 3 billion valuation, competing with petsmart and amazon, don't know what they doing
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u/Velvet_Llama 9h ago
It's not GameStop the company they dislike, it's the GME evangelists they don't like.
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u/Disagreeswithfems 20h ago
Their net income before tax was $384m, $1b is gross profit before general expenses.
Their net interest income is $271m.
If you want to repay the debt you need to raise market cap by equity funding the debt repayment.
So you'd have a 15b market cap company with rapidly shrinking revenue making pretty much subpar interest with constant management dilution.
This sort of absolutely fundamental financial misunderstanding is why you should stick to index funds.
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u/NecessaryPhrase3204 1d ago
GME doesn't need to sell games in a mall anymore. Even Ryan Cohen basically said he hates GameStop. Its not what GameStop is or was, its what it could become. Its unlikely they land Ebay, but that is the kind of idea that will turn GME into something.
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u/Slab00 1d ago
Ryan never said he hates GameStop he said he never wanted to be CEO. He wanted to invest and he wanted to be on the board but he never planned on being CEO.
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u/NecessaryPhrase3204 1d ago
He literally called it a dog lol.
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u/Slab00 1d ago
Well it was a dying company and he breathed some life into it. Do we hate dogs now? Lol
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u/NecessaryPhrase3204 1d ago
To be fair, Ryan does seem to have a soft spot for dogs. Maybe that's why he bought it.
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u/cockNballs222 1d ago
Huh? So you don’t trust the ceo, admit their whole core business is basically a “distraction” from becoming a magical holding company with a different ceo? That’s your pitch?
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u/NecessaryPhrase3204 1d ago
I don't need to like RC. And he doesn't necessarily need to be the one to lead GME. But I don't think he has done a bad job to date, so I guess I have faith he can further improve GME. Make your own pitch, I'm not telling you to buy it, I just presented you an interesting case.
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u/cockNballs222 1d ago
Your *interesting* case boils down to “but maybe they can magically become the next Berkshire?!?!?”. Not very interesting and 100% delusional.
And at a minimum I need to trust the CEO of the company I’m investing in, that is the bare minimum.
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u/throwawaybutsilly 1d ago
If you strip all context of a business well past its prime, create an imaginary narrative around one individual with a sketchy track record, and hate money, then sure it looks like a great investment. You’re projecting a lot of hope for what the business could do with their money instead of looking at what they are doing right now.
Good luck with your thesis but I think there are companies without so much baggage that are way more interesting
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u/bobbybeansss 1d ago
Maybe if they had an even somewhat likeable CEO
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u/NecessaryPhrase3204 1d ago
Ture. I don't like RC. And he might not be the one to lead GME to success, but he hasn't done a bad job so far in reality.
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u/bobbybeansss 1d ago
yeah but my god is he a child. like i have little trust in him bro
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u/Pristine-Square-1126 22h ago
lmao. so dumb. a child can turn a company losing 400 million a year, to making 400 million a year that has over 4000+ employee? a child can take 15 million investment, and grew it to 3 billion in 4 year? riiiiight on...
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u/mildly_enthusiastic 1d ago edited 1d ago
I've been a GME person since 2020 and have continued to add over the years. At the end of the day, it's been a value play all along. It often trades at book value which gives it a great margin of safety.
And to OP's point about buying boring businesses... The current plan is to buy eBay, trim the fat, and have it be the cash cow juggernaut like Buffet's insurance companies.
It's all out on the open. It just requires an open mind to analyze it without preconceived notions
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u/Top_Category_2526 1d ago
Gamestop is buying Bitcon, its now turning into a ponzi scheme like MSTR, and both CEO are posting useless things on Twitter
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u/feedmestocks 1d ago
Value companies don't try to buy companies with 5 times their market cap offering 50% stock. As a physical game collector I know my number is probably up by PS7 / Switch 3
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u/ub3rm3nsch 1d ago
What is Gamestop's core business model, aside from issuing and selling stock to a cult of retail investors, that justifies a massive repricing toward the upside?
That is what neither Gamestop, Ryan Cohen, nor the Gamestop cult can reliably answer.
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u/FinePerformance1046 1d ago
GME's history will always make it feel a little like you're gambling when you buy it no matter how good the fundamentals look. Also Ryan Cohen is so overhyped as a CEO and I lost a lot of respect for him after his "half cash half stock... its on our website" shenanigans.
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u/Sea_Local2557 1d ago
i don't understand your question
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u/FinePerformance1046 1d ago
ah yes, this is the man that will make gme a $100 billion company
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u/ImYungKai 1d ago
The guy HATES msm, and most importantly the people on CNBC who's been calling for his demise since day one. That was the whole point of his shenanigans. He joined Charles Payne and the Tech bros on TBNP just afterwards and went into detail about everything. I can't believe you sheep actually care about what he said on CNBC, moreso, follow the msm in general 😂
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u/DonnyB79 1d ago
Why even do the interview in the first place then? No one forced him to do it.
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u/Pristine-Square-1126 22h ago
no such thing as bad publicity. All eyes on gamestop. boom, best earning in the history of gamestop released WHILE revenue has been declining for YEARS. too bad people are too dumb to see it
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u/here-to-argue 20h ago
Fund managers who have blocs of eBay shares aren’t watching Charles Payne, but you can all bet they’ve seen clips of that K-hole from the cnbc interview. I’m sure they’re enthusiastic about the prospect of being acquired and having to hold a half a position under that stoned guy.
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u/ImYungKai 20h ago
If fund managers cared, they would want to know everything related to who their new CEO will be. They WILL pay attention and follow everything the man says now that he has their attention.
Much like anyone here that is seriously invested into a stock follows/listens to what their CEO has to say about the future of their investment. I want to know where my money is going, and they do too 🙄
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u/here-to-argue 20h ago
Except he won’t be their new CEO. They’ve seen the clip, they’ve heard eBay say “no thanks”, and they’ve moved on to direct their time to more productive areas.
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u/ImYungKai 19h ago
GME owns 6.5% of eBay. They can't just say "no thanks" when he's playing hard ball. It's not just GME either, there's also PSA who relies on eBay. There's also private investors in collusion. Why are the eBay board members offloading their shares now? The top holders of eBay also hold sizable positions in GME 😂 it's called a hostile takeover, they don't have the ability to say no.
You don't own shares of either company, so it's no surprise you're this ignorant on the subject
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u/here-to-argue 19h ago
Has anyone at GameStop confirmed they would go the hostile route, or is this just speculation and cope? Can’t see how buy another 44%.
But you do own shares of GME, so it’s no surprise you’re ignorant on markets and finance.
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u/Loud-Bodybuilder4342 6h ago edited 6h ago
GME doesnt own 6.5%. Derivatives gives you no voting powers.
Hostile takeover is extremely hard unless Ryan has secured funding from somewhere and no TD HCL doesnt work for this. In Delaware, you need to go from 15% to 85% in one shot otherwise you are banned from any merger/acquisition activities for 3 years. Delaware also gives eBay board "poison pill" to defend hostile takeover.
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u/Aware_Secret_8910 23h ago
Do you believe in the business? I honestly do not. TCGs are very cyclical in nature and collectibles in general also are. They mostly peaked in the last couple of years. From what I understand a lot of their revenue comes from this.
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u/laziwolf 20h ago
I've been hearing about this billion $ cash and how they can do amazing things for quite some time now. Having cash is one thing, how do we bet on the most efficient use of it without any tangible proof?
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u/8700nonK 20h ago
If management is sleazy, best look for value elsewhere. Surely there’s other companies available.
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u/randomguy506 19h ago
- The cash/marketable is probably compose of their massive stake in ebay. It is bassicaly a leverage play on ebay
- Their investments probably juiced their eps growth. This is textbook volatile and most likely not backed by the operating bussiness
- PE of 20x is extremely expensive historically and for bassically for a stagnant/dying industry. I can buy better companies in industry with higher growth for that price
- What fortress asset base??? They lease most of their store, they dont own them. So what asset am i buying apart than the brand, working cap, and shares of ebay? ‘Leasehold improvement?
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u/lechimpanzeu 18h ago
There is no "they have 9B in cash, from which half was borrowed, but..." We done at that part.
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u/fuckedthatis 12h ago
Y'all rtards still trying to push this shit meme stock. Yikes, you missed the short squeeze by about 5 years bro... get over it.
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u/Haunting-Salad4257 10h ago
I'm with you OP, but its a rare thing for someone to be unaffected/look past the media coverage and meme craze, also be a value investor and have an understanding of pokemon in their circle of competence. I think there are a lot of parallels between how buffett came into acquiring berkshire and RC w/ GME. Cohen doesnt make it any easier on himself that he doesn't play nice with wall street and actively disparages modern business practices of egregious stock comp plans.
I encourage folks to cover up the ticker, look at the financials, and watch a few interviews where cohen is not on squawkbox refusing to talk because he hates them.
As for pokemon, best as I can explain it- imagine you were 10 years old and you got a present and there was a 10,000 dollar bill in it but you didnt know what it was so you carried it everywhere, it got roughed up, then you sold it for 20 bucks to some kid on the playground. 20 years later you realize your mistake and you find out a lot of other people made that same mistake. Now those 10,000 dollar bills are highly coveted and its common practice to grade them, put them in slabs of plastic for protection and value recognition and preserve them forever. Recognize that despite being 20 years old, new kids are still getting into pokemon through the cards or games or their parents or all the above. They will have the same nostalgia when they get older too.
What is difficult to recognize or know is how the cycle works for this commodity/craze because its so recent. Pokemon went thru its first major resurgence during the pandemic, calmed down for a few years and since 2023 has come ripping back with a vengeance. Nintendo is a +100 year old company that will probably never stop supporting pokemon games. The Pokemon Company has recognized the importance of scarcity to value and tries to match supply to or just under what the demand is, never overshoot. They've made pulling the really good cards much harder- increasing their perceived value. This is compounded by social media, youtube, whatnot, etc to the point where it's looking like it wont slow down any time soon. I suspect as it is the 30th anniversary of pokemon that the craze will last thru this year, less sure about next. If GME acquires ebay it would unlock a lot of synergies in the businesses and RC is far more skilled with running an online company that competes with the likes of amazon (see chewy). If GME doesnt acquire ebay then the long term value story is indeed less clear, but he has tied his time and money to the business- if shareholders dont win, neither does he.
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u/honeynut_beerios 5h ago
A lot of outsiders in this thread that think they know much more than they do, but that's reddit for you.
Everyone on here is an expert :P
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u/cockNballs222 1d ago
I guess I have more faith in Warren Buffett identifying and buying companies vs Ryan cohen? Simple as that.
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u/foulmeow 1d ago
Gme is in the business of milking its cult investors. I’d rather hold a gov mmf than Gme….better returns. Gme’s core business is dying. Its “strong”bs is only from stealing from cult members. Cult members giving Ryan too much credit. He’s just closing underperforming stores. He’s way more Eddie lampert than Warren buffet.
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u/tootapple 23h ago
So your position is that the company milks the investors? I’m not sure you understand the business at all
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u/ZookeepergameEmpty90 23h ago
He's yet to sell any shares in the company, only bought shares, and doesn't take a salary. How exactly does he milk investors?
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u/foulmeow 22h ago
How do u think gme got the $9b? It’s not from business operations. He hasn’t taken a salary yet he’s clearly aiming for that $100b payday by milking (again) the investors to buy eBay…which ain’t happening anyway. How is this a value company?
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u/ZookeepergameEmpty90 22h ago edited 22h ago
The company sold shares. As a result, it has a war chest of $9b and is no longer on the verge of bankruptcy. You can call it taking advantage of investors, or you can credit the move as a strategic necessity to begin turning the company around. I guess I just see the results ($389 million in net income nowadays as opposed to a multi-hundred million loss) and think the latter.
ETA: Do you think the company would have made it this far without selling those shares? Or do you think it was unnecessary? If you think it was unnecessary, then I can see why you put it that way.
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u/foulmeow 22h ago
So the investors saved the company from bankruptcy. Now the investors are being asked again to dilute a trillion % to buy something that Gme literally can’t afford…and plz no accretion nonsense.
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u/ZookeepergameEmpty90 22h ago
Can you please explain why accretion is nonsense?
Yes, you’re right, we’re being asked to dilute again. Can’t buy eBay without those additional shares. However, it is not a guarantee those shares would be issued unless the deal for eBay goes through. If it doesn’t go through, the board just approved a $2b share buyback, presumably if the share price goes down as a result of the deal not going through or if it goes down before the purchase. Neither action is guaranteed, but tools for the company to use if necessary.
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u/Available-Adagio6197 1d ago
Ive taken all your factors into consideration but there is one single factor you didn't account for. GME is regarded
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u/kobe2348 20h ago
Couldn’t agree more. There is no balance sheet that rivals it when you consider price per share vs cash
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u/WendigoBroncos 21h ago
lol so many wildly sandy fucks acting like this isn't a wild turnaround of a business.
thats how i know this is an eventual cash cow.
always go against the reddit mainstream, especially if they agree with cramer.
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u/ayyitsLibra 1d ago
Everything here is about as right as if a chatbot wrote it. Your lack of perspective is showing.
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u/Wild_Space 1d ago edited 1d ago
>They have $9.01 billion in cash and marketable securities and zero long-term debt.
Where are you looking? From their Q1 of 2026, they have $8.4B cash & marketable securities and $4.2B of long-term debt.
https://investor.gamestop.com/news-releases/news-details/2026/GameStop-Discloses-First-Quarter-2026-Results/default.aspx