Comment by Crazy-Ad-7869 on 02/04/2023 at 12:03 UTC

222 upvotes, 11 direct replies (showing 11)

View submission: Keith Gill (u/DeepFuckingValue) and The Gamestop Saga

Now that GameStop posted Q4 postive earnings, has no meaningful debt (a small $40 million loan associated with the French gov't response to COVID), $1.2 billion in cash on hand, positive cash flow, and an NFT marketplace ready to capture traffic once web 3 video games are ready to roll over the next 2-4 years ... it's hard not to call it Deep Fucking Value. Keith Gill is a legend, for good reason.

Replies

Comment by TriathlonNerd at 02/04/2023 at 12:36 UTC

178 upvotes, 1 direct replies

and an NFT marketplace ready to capture traffic once web 3 video games are ready to roll over the next 2-4 years ...

RemindMe! 3 years

Comment by Shoopshopship at 02/04/2023 at 12:45 UTC

58 upvotes, 0 direct replies

If the NFT Marketplace doesn't pan out do you still think it's Deep Fucking Value?

Comment by rbesfe1 at 02/04/2023 at 13:01 UTC

160 upvotes, 3 direct replies

NFT marketplace

LOL. Lmao, even. Have you seen how poorly the reception of NFTs has been in the gaming space? The closest you'll get is something like csgo where everything is controlled by the developer, no need for a middleman like gamestop

Comment by PuzzleheadedWeb9876 at 02/04/2023 at 14:22 UTC

49 upvotes, 0 direct replies

Now that GameStop posted Q4 postive earnings

You forgot to mention the part where they still have a net loss of 313 million for the year.

Comment by dubhedoo at 02/04/2023 at 16:39 UTC

24 upvotes, 1 direct replies

DFV got involved when it was a penny stock. He said "fair value" at the time was 40. Figuring in the 4:1 stock split, that would make his target 10. So the company is still overvalued according to his computation.

Comment by [deleted] at 02/04/2023 at 15:05 UTC

41 upvotes, 0 direct replies

GameStop had even bigger Q4 profits in 2020. Same with Q4 2019, 2018, 2017, 2016, etc. If you zoom out past the outlier that was Q4 2021, you’ll see that GameStop’s Q4 profits in 2022 continued a downward trend, which is particularly bad given that Q4 has for years been the company’s only profitable quarter. Its Q4 revenue was also down, even when compared to the train wreck that was Q4 2021.

The NFT marketplace brings in literally hundreds (not hundreds of thousands, just hundreds) of dollars per day, an amount that, in GameStop’s own words, is “not material” to a company that lost over $300,000,000 in 2022. Nearly a year into the launch of its beta, it still brings essentially nothing to the table to separate it from the countless other NFT marketplaces out there, and the company shows no indication that that’s likely to change. On the contrary, many of the people tasked with building this marketplace are no longer with the company.

I wouldn’t hold out for Web3 games, either. They’re mostly just shovelware/scam games, which makes sense given that NFTs don’t actually bring much to a gaming experience. You still don’t really own the digital items that you purchase as NFTs, and it’s perfectly possible to buy, sell, and trade in-game items in games without NFTs. Web3 games, as such, mostly exist to milk money out of crypto bros.

Having little debt and a decent chunk of cash can be nice, but it doesn’t mean much without a plan to turn things around, and GameStop has yet to offer such a plan. In fact, the fact that it’s still sitting on so much of the money that it raised in 2021 (by selling shares following the squeeze) should be a red flag for anyone expecting a big turn around. Companies trying to grow always invest as much money as they can to secure their market share. GameStop is letting its market share shrink while holding onto its money to cover operating costs until it finally shrinks to a small enough size that it can become profitable. If you’re looking for a growing company, not a shrinking company, look elsewhere.

GME had deep value in 2020 when Keith bought in for like $2 ($0.50, post-split), but now it’s only good for people who are willing to take a risk by gambling on its volatility.

Comment by dubhedoo at 02/04/2023 at 16:33 UTC

14 upvotes, 0 direct replies

Oh come on now, get real. Yes, they showed a small profit in Q4. That's typically the best quarter for retailers because it includes the holidays. They showed a significant loss for the year. Let's see what happens next quarter.

Their current business model of selling physical games at brick and mortar stores sucks. This is not a growth industry.

The NFT Marketplace is nothing short of a disaster. Their revenue from that is not material in their report (their words). Most of the developers have been laid off or left on their own, so no, the site is not in beta, it is fully developed.

If you believe in web 3, there are better companies to be involved with.

This company is "dead man walking". Without the apes, it would already have died.

Comment by sludgefeaster at 03/04/2023 at 00:51 UTC

5 upvotes, 1 direct replies

No one shops at GameStop lol

Comment by TriathlonNerd at 16/01/2024 at 01:14 UTC

2 upvotes, 0 direct replies

, and an NFT marketplace ready to capture traffic once web 3 video games are ready to roll over the next 2-4 years ...