Meme stock GameStop has been on a wild ride in the last couple of years, but cash burn and lack of profitability loom large over the video game retailer.
Like AMC Entertainment Holdings Inc. AMC, -0.30%, GameStop is a meme stock darling. Earlier this year GameStop rocketed to its longest win streak in over a decade, boosted in part by a bullish post on the WallStreetBets subreddit. “GameStop was a struggling brick-and-mortar retailer before it entered the meme-stock stratosphere,” he said. “The meme-frenzy distracted from business fundamentals, but becoming competitive again will be no easy task.”
GameStop ended its most recent quarter with cash and equivalents of $908.9 million. The company also said it ended the quarter with no debt other than a low-interest loan related to the French government’s response to the pandemic. Set against this backdrop, Trainer isn’t confident of GameStop’s chances of exiting the list of zombie stocks. “It is unlikely that the company will ever make enough money to satisfy stakeholders with higher claims on the company’s cash flows than common equity shareholders,” he said. “Not surprisingly, GME has an economic book value, or no growth value, of -$19/share.”
You can pump up a stock as much as you want. It does not give value to the company. GME has simply not done enough with the opportunity given to them to turn around the business.
theRealDTrain37 ROFL 🤡 How sad. Another boomer fossil who doesn’t know what he’s talking about. NewConstructs should be embarrassed. $GME GME
Wow the FUD & SHILL machinery at work
.. wait until we DRS the entire float.
Reminds me of blockbuster, they need to close, not their fault , changing time's
i’ve never seen so many media companies against the turning around of american businesses. who’s paying/pressuring you guys? wink once if it’s short sellers
$gme is worse than worthless because they need apes to stay in business the NFTMarketplace is a big ol flop ryancohen GameStop GameStopNFT I thought for a second he got smart when he dumped $bbby but he is still a bag holder of $gme what a train wreck
Translation: Our clients Puts are underwater so in order to boost confidence amongst our clients about our services. There's this.
Really sad.
This is a ruse, folks. GME is no 'zombie stock' by any stretch, don't allow the media and Wall Street to fool you.
It’s been a Zombie since well before the pandemic
Zombie stock? 🤣
Not a zombie stock, sweetie. Do you know what a zombie stock is? That means it would have been dead. GameStop was never dead. Please do research before posting something, this is seriously embarrassing.
Bold claim! Must have missed the 71.3 million shares retail holds of GME on the 10Q
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