GameStop just loses more money the higher revenue they have.

$GameStop(GME)$ I know apes don't care about these things, but when you look at GME's income statements over the past quarters, with new focus on the most recent, and you model out their margins, esp given the higher acquisition cost and lower margins (online metrics), GameStop just loses more money the higher revenue they have. Their cost structure is too high, yet Cohen's model is to grow revenue while reducing margin. He's throwing cost management out the window to play a 30 year catch-up game with Amazon. The annual revenue levels of GameStop would have to be something completely unattainable like $50-$100 billion per year to ever 'scale'.

The on-line retailers receive other streams of income like AWS and ads which GME does not and never will have. But with all that extra $1bln cash they raised, you could say, sure they can do a Citizen Kane and lose money every quarter and every year for many years, but just paying that back out to share-holders would be a better use of those funds. I've revised my earnings for them and have have sales around 1.27 billion, reduced margins and sneaking in some asset impairments because of the cash windfall will blunt the headline. Net loss for this quarter will range -66 million to -98 million for the quarter so a loss from .92 per share to -1.37 per share. I can see why most analysts have suspended coverage completely. Their model worked when they did alot more trade-ins, at the store.