SteveGoh
2021-11-30
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GameStop Is a Tale of Visionaries and Guessing Games
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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":609816206,"tweetId":"609816206","gmtCreate":1638263602462,"gmtModify":1638263602772,"author":{"id":3580932551134778,"idStr":"3580932551134778","authorId":3580932551134778,"authorIdStr":"3580932551134778","name":"SteveGoh","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":23,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body><p>Like pls </p></body></html>","htmlText":"<html><head></head><body><p>Like pls </p></body></html>","text":"Like pls","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/609816206","repostId":1109000741,"repostType":4,"repost":{"id":"1109000741","kind":"news","pubTimestamp":1638262796,"share":"https://www.laohu8.com/m/news/1109000741?lang=&edition=full","pubTime":"2021-11-30 16:59","market":"us","language":"en","title":"GameStop Is a Tale of Visionaries and Guessing Games","url":"https://stock-news.laohu8.com/highlight/detail?id=1109000741","media":"InvestorPlace","summary":"Something is brewing for GME stock, although details on the company's new strategy are foggy","content":"<p><b>GameStop</b> (NYSE:<b><u>GME</u></b>) shot “to the moon” during the meme stock trading frenzy of early 2021. However, the gravity of the company’s weak business growth outlook and persistently poor earnings could continue to pull GME stock back to Earth.</p>\n<p>Interestingly, though, a new vision could also rescue GME stock from this imminent collapse. That is, when meme-stock traders finally move on and fundamentals-minded, valuation-sensitive investors take over the show.</p>\n<p>Still, the market has been waiting for GameStop’s promised new strategic path for months now. That has investors still guessing as to what’s cooking inside the company boardroom.</p>\n<p>Here’s what you should know about GME stock moving forward.</p>\n<p><b>GME Stock: History Repeating Itself</b></p>\n<p>At the start of the year, GME stock had heavy short interest — and for good reason. The business was going down. The company had started divesting assets to pay debt and repurchase shares. Losses were mounting and future negative free cash flows were likely to land it <i>back</i>in to bankruptcy <i>again</i>.</p>\n<p>What’s more, the refresh cycle in gaming consoles wasn’t sure to rescue the business from its downtrend. Especially not when gamers have increasingly been downloading games instead of buying hard copies.</p>\n<p>GameStop’s business was first rescued from bankruptcy by astute investor and <b>Barnes & Noble</b> chairman Leonard Riggio, who personally acquired video game retail assets and sold them to B&N. Barnes & Noble then revamped the business, rebranded it as GameStop and spun it off to the public in 2004.</p>\n<p>By 2021, it was doomed to fail. However, thanks to <b>Reddit’s</b>r/WallStreetBets and the empowered retail investor crowd on <b>Robinhood</b> (NASDAQ:<b><u>HOOD</u></b>), GME stock soared on an unbelievable short squeeze at the beginning of the year. The company then capitalized on the event and issued new shares, including more than $1.1 billion in net proceeds in a June equity raise.</p>\n<p>So, GameStop was recently rescued from its potential future bankruptcy — this time by an incensed trading crowd. However, the remaining critical issue is whether GME can successfully transform its business again and justify its lofty valuation.</p>\n<p><b>The Suspense Game and an Emerging E-Commerce Giant</b></p>\n<p>During an annual meeting in June, GameStop chairman Ryan Cohen was quoted saying the following: “We are trying to do something that nobody in the retail space has ever done.”</p>\n<p>The market has been waiting for an announcement since then. Yet, as if to avoid giving difficult answers, executives are no longer taking questions during quarterly earnings calls.</p>\n<p>That said, something is definitely happening at the company. And GME stock investors keep guessing what GameStop’s new strategy will be. Suspense is rife.</p>\n<p>This is part of why it came in as big and exciting news when GameStop announced it was hiring <b>Amazon</b>(NASDAQ:<b><u>AMZN</u></b>) veterans to take up leadership roles. New hires included CEO Matt Furlong and CFO Mike Recupero (both formerly of Amazon) as well as Chief Technology Officer Matt Francis (formerly of Amazon Web Services).</p>\n<p>The company also made new senior appointments across brand, merchandising, e-commerce, supply chain and fulfillment. Each of the new senior staff members has a background linked to companies like Amazon,<b>Alphabet’s</b>(NASDAQ:<b><u>GOOG</u></b>, NASDAQ:<b><u>GOOGL</u></b>) Google and <b>Chewy</b> (NYSE:<b><u>CHWY</u></b>).</p>\n<p>To me, it’s clear that GameStop has dreams of morphing into a game-anchored e-commerce giant. In executing this strategy, the company has expanded its online product categories. It sells gaming gear, laptops, displays, computer memory and a lot more, including apparel and jewelry.</p>\n<p>Further, GME recently leased vast space (530,000 square feet) in Reno as well as a 700,000 square-foot facility in Pennsylvania. The company also announced the hiring of up to 500 employees at a new customer care center in Florida back in late September.</p>\n<p>All told, GameStop is undergoing a significant transformation. Could it become a smaller version of Amazon? I wouldn’t stretch my imagination that far… but why not?</p>\n<p><b>Watch GME’s Recent Hiring Adverts</b></p>\n<p>These developments aren’t the only thing to appreciate about GME stock, though. GameStop is also venturing into new spaces, including non-fungible tokens (NFTs), cryptocurrencies and possibly augmented reality (AR).</p>\n<p>On top of launching an NFT-related portal to invite developers, GameStop is hiring for a Head of Web3 Gaming with a deep understanding of what “gaming partners are trying to achieve and how NFTs can be a key business driver.” The position description also seeks a candidate to “build a team to help creators launch their projects on the GameStop platform,” among other responsibilities. Finally, the candidate will need “experience working in the blockchain/crypto space, especially with Ethereum and NFTs.”</p>\n<p>GameStop is definitely onto something here. As <b>Meta Platforms</b>(NASDAQ:<b><u>FB</u></b>) transforms and rebrands from Facebook (with an upcoming ticker change in December), GME could also be a strong participant in the metaverse and other emerging technologies moving forward.</p>\n<p><b>Investor Takeaway on GME Stock</b></p>\n<p>All told, this one is still too early to call. But one thing is for sure: GameStop has fresh visionaries on its executive team. This new leadership could certainly “do something that nobody in the retail space has ever done,” as Cohen put it.</p>\n<p>That said, GME stock trades at 2.69 times its 2022 sales. Close, profitable competitor <b>Best Buy</b> (NYSE:<b><u>BBY</u></b>) trades at 0.52 times 2022 revenue.</p>\n<p>When it comes down to it, GameStop is too expensive for a new investor to play its revolutionary transformation right now. And there’s no room for strategic misses on the company’s part.</p>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>GameStop Is a Tale of Visionaries and Guessing Games</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGameStop Is a Tale of Visionaries and Guessing Games\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-30 16:59 GMT+8 <a href=https://investorplace.com/2021/11/gme-stock-is-a-tale-of-visionaries-and-guessing-games/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GameStop (NYSE:GME) shot “to the moon” during the meme stock trading frenzy of early 2021. However, the gravity of the company’s weak business growth outlook and persistently poor earnings could ...</p>\n\n<a href=\"https://investorplace.com/2021/11/gme-stock-is-a-tale-of-visionaries-and-guessing-games/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GME":"游戏驿站"},"source_url":"https://investorplace.com/2021/11/gme-stock-is-a-tale-of-visionaries-and-guessing-games/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1109000741","content_text":"GameStop (NYSE:GME) shot “to the moon” during the meme stock trading frenzy of early 2021. However, the gravity of the company’s weak business growth outlook and persistently poor earnings could continue to pull GME stock back to Earth.\nInterestingly, though, a new vision could also rescue GME stock from this imminent collapse. That is, when meme-stock traders finally move on and fundamentals-minded, valuation-sensitive investors take over the show.\nStill, the market has been waiting for GameStop’s promised new strategic path for months now. That has investors still guessing as to what’s cooking inside the company boardroom.\nHere’s what you should know about GME stock moving forward.\nGME Stock: History Repeating Itself\nAt the start of the year, GME stock had heavy short interest — and for good reason. The business was going down. The company had started divesting assets to pay debt and repurchase shares. Losses were mounting and future negative free cash flows were likely to land it backin to bankruptcy again.\nWhat’s more, the refresh cycle in gaming consoles wasn’t sure to rescue the business from its downtrend. Especially not when gamers have increasingly been downloading games instead of buying hard copies.\nGameStop’s business was first rescued from bankruptcy by astute investor and Barnes & Noble chairman Leonard Riggio, who personally acquired video game retail assets and sold them to B&N. Barnes & Noble then revamped the business, rebranded it as GameStop and spun it off to the public in 2004.\nBy 2021, it was doomed to fail. However, thanks to Reddit’sr/WallStreetBets and the empowered retail investor crowd on Robinhood (NASDAQ:HOOD), GME stock soared on an unbelievable short squeeze at the beginning of the year. The company then capitalized on the event and issued new shares, including more than $1.1 billion in net proceeds in a June equity raise.\nSo, GameStop was recently rescued from its potential future bankruptcy — this time by an incensed trading crowd. However, the remaining critical issue is whether GME can successfully transform its business again and justify its lofty valuation.\nThe Suspense Game and an Emerging E-Commerce Giant\nDuring an annual meeting in June, GameStop chairman Ryan Cohen was quoted saying the following: “We are trying to do something that nobody in the retail space has ever done.”\nThe market has been waiting for an announcement since then. Yet, as if to avoid giving difficult answers, executives are no longer taking questions during quarterly earnings calls.\nThat said, something is definitely happening at the company. And GME stock investors keep guessing what GameStop’s new strategy will be. Suspense is rife.\nThis is part of why it came in as big and exciting news when GameStop announced it was hiring Amazon(NASDAQ:AMZN) veterans to take up leadership roles. New hires included CEO Matt Furlong and CFO Mike Recupero (both formerly of Amazon) as well as Chief Technology Officer Matt Francis (formerly of Amazon Web Services).\nThe company also made new senior appointments across brand, merchandising, e-commerce, supply chain and fulfillment. Each of the new senior staff members has a background linked to companies like Amazon,Alphabet’s(NASDAQ:GOOG, NASDAQ:GOOGL) Google and Chewy (NYSE:CHWY).\nTo me, it’s clear that GameStop has dreams of morphing into a game-anchored e-commerce giant. In executing this strategy, the company has expanded its online product categories. It sells gaming gear, laptops, displays, computer memory and a lot more, including apparel and jewelry.\nFurther, GME recently leased vast space (530,000 square feet) in Reno as well as a 700,000 square-foot facility in Pennsylvania. The company also announced the hiring of up to 500 employees at a new customer care center in Florida back in late September.\nAll told, GameStop is undergoing a significant transformation. Could it become a smaller version of Amazon? I wouldn’t stretch my imagination that far… but why not?\nWatch GME’s Recent Hiring Adverts\nThese developments aren’t the only thing to appreciate about GME stock, though. GameStop is also venturing into new spaces, including non-fungible tokens (NFTs), cryptocurrencies and possibly augmented reality (AR).\nOn top of launching an NFT-related portal to invite developers, GameStop is hiring for a Head of Web3 Gaming with a deep understanding of what “gaming partners are trying to achieve and how NFTs can be a key business driver.” The position description also seeks a candidate to “build a team to help creators launch their projects on the GameStop platform,” among other responsibilities. Finally, the candidate will need “experience working in the blockchain/crypto space, especially with Ethereum and NFTs.”\nGameStop is definitely onto something here. As Meta Platforms(NASDAQ:FB) transforms and rebrands from Facebook (with an upcoming ticker change in December), GME could also be a strong participant in the metaverse and other emerging technologies moving forward.\nInvestor Takeaway on GME Stock\nAll told, this one is still too early to call. But one thing is for sure: GameStop has fresh visionaries on its executive team. This new leadership could certainly “do something that nobody in the retail space has ever done,” as Cohen put it.\nThat said, GME stock trades at 2.69 times its 2022 sales. Close, profitable competitor Best Buy (NYSE:BBY) trades at 0.52 times 2022 revenue.\nWhen it comes down to it, GameStop is too expensive for a new investor to play its revolutionary transformation right now. And there’s no room for strategic misses on the company’s part.","news_type":1},"isVote":1,"tweetType":1,"viewCount":184,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"CN","currentLanguage":"CN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":7,"xxTargetLangEnum":"ZH_CN"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/609816206"}
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