Overview

Headquartered in Grapevine, Texas, GameStop Corporation is a retailer of video games and related products. Through its approximately 4816 stores (as of Jan 30, 20211), and e-commerce sites, the company, via brands such as GameStop, EB Games, Micromania, ThinkGeek, and Zing Pop Culture, sells video games platforms (both new and pre-owned), gaming peripherals, video game software (both new and pre-owned), as well as game downloads.

GameStop Stock (GME), however, is best known today by investors as the one that initiated the "meme stocks" trend in January 2021. Starting off a short-squeeze, coordinated by users of Reddit's r/WallStreetBets subreddit, traders sent GME stock from around $20 per share, to as much as $483 per share, in less than two weeks.

The squeeze resulted in an abnormal amount of trading in the stock, with daily volume going from around 14.9 million on Jan 11, to as much as 197.2 million on Jan 22. Heavy trading in GME stock, along with other Meme Stocks such as AMC Entertainment led to trading disruptions, as well as trading restrictions, on brokerage platforms such as Robinhood and TD Ameritrade.

Some individual investors, such as Keith Gill, better known as "Roaring Kitty,2" made millions from the trade. In contrast, hedge funds Melvin Capital saw considerable losses.3 To shore up its heavy losses, Melvin received a $2.8 billion bailout from Citadel and Point72 Asset Management4. Peaking in late January, GME stock fell back under $50 per share in mid-February. However, in March, a second squeeze occurred in the stock, sending it back between $200 and $300 per share. 

Recent Developments

Since the history-making squeezes earlier this year, short interest in GME stock has come down. Despite this, shares remain up more than 960% year-to-date (as of Nov 26, 2021). Many of the individual retail investors who participated in the squeeze still hold the stock. This is similar to the situation with AMC Entertainment, where self-proclaimed "Apes" continue to make up a large portion of its shareholder base.

Also similar to AMC, GameStop is taking active efforts to turnaround its operations. Shortly after the short squeeze, an activist investor took control of GameStop's board of directors. Ryan Cohen, co-founder of pet product e-commerce platform Chewy, who had acquired a large position in GME stock, was elected Chairman in April 20215.

With control of its board, Cohen is working to transform the company from a largely bricks-and-mortar video game retail, to an e-commerce platform akin to Amazon6. Filling the C-suite with former Amazon and Chewy executives/managers, the company is also building out its distribution/fulfillment infrastructure7. GameStop is also rumored to be entering the NFT (non-fungible token) business, based upon job postings on its website8

To finance its transformation, GameStop conducted secondary equity offerings in April 20219 and June 202110. Through these offerings, GameStop raised a total of $1.65 billion. 

Financial Highlights

Income Statement

In the trailing twelve months (TTM), GameStop has generated $5.59 billion in revenue11. Compared to sales for fiscal 2021 (ending January 2021), the company is showing slight improvement, thanks to end of 2020's Covid-19 lockdown orders. However, sales remain down substantially from levels posted in prior fiscal years. This is more a product of the terminal decline of its bricks-and-mortar business than it is a product of the pandemic.

With its decline in sales over the past few years, the company has posted negative EBITDA. In fiscal 2021, GameStop had negative EBITDA of $168.6 million. This EBITDA loss has started to narrow, as seen from TTM EBITDA figures (negative $72.2 million).

As the company is posting negative operating margins, net losses remain high as well. In the past twelve months, GameStop has reported negative net income of $66.9 million, or 99 cents per share. For Fiscal 2022 (ending January 2022), sell-side analyst project negative earnings per share (EPS) of 64 cents12.

Balance Sheet

As of Jul 31, 2021, GameStop had $1.72 billion in cash on hand13. This is a product of the two secondary offerings completed in April and June 2021. Total assets total $3.55 billion, most of which is made up of current assets ($2.65 billion), with the balance made up of long-term assets (primarily operating lease right-of-use assets).

Liabilities total $1.69 billion. $1.194 billion are current liabilities, with the balance made up primarily of a long-term lease liability that counters the aforementioned right-of-use assets.

Recent Results

For the quarter ending Jul 31, 2021, GameStop generated $1.183 billion in sales14, up 25.5% from the prior year's quarter ($942 million). Net losses came in at $61.6 million (85 cents per share), narrowing from the $111.3 million ($1.71 per share) quarterly loss reported in the quarter ending Jul 31, 2020.

GameStop will next release quarterly results (for the October quarter) after the market close on Dec 8, 2021.

  1. ^ https://www.sec.gov/ix?doc=/Archives/edgar/data/1326380/000132638021000032/gme-20210130.htm
  2. ^ https://www.cnbc.com/2021/02/17/roaring-kitty-keith-gill-defends-gamestop-posts-says-he-is-as-as-bullish-as-ever-on-the-stock.html
  3. ^ https://www.institutionalinvestor.com/article/b1vgwsmwsc2v61/melvin-capital-s-comeback-plan
  4. ^ https://markets.businessinsider.com/news/stocks/steve-cohen-ken-griffin-invest-3-billion-gamestop-short-seller-2021-1
  5. ^ https://www.marketwatch.com/story/gamestop-stock-rallies-after-plans-to-name-ryan-cohen-as-chairman-2021-04-08
  6. ^ https://www.businessinsider.com/ryan-cohen-gamestop-transformation-ecommerce-explained-2021-3
  7. ^ https://nypost.com/2021/05/03/gamestop-signs-lease-for-massive-distribution-warehouse-ditches-debt/
  8. ^ https://cointelegraph.com/news/redditors-cheer-as-gamestop-assembles-team-of-nft-experts
  9. ^ https://news.gamestop.com/news-releases/news-release-details/gamestop-completes-market-equity-offering-program
  10. ^ https://news.gamestop.com/news-releases/news-release-details/gamestop-completes-market-equity-offering-program-0
  11. ^ https://seekingalpha.com/symbol/GME/income-statement
  12. ^ https://finance.yahoo.com/quote/GME/analysis?p=GME
  13. ^ https://fintel.io/bs/us/gme?d=1000&t=q
  14. ^ https://gamestop.gcs-web.com/news-releases/news-release-details/gamestop-reports-financial-results-q2-2021
Tags: US:GME
Created by Thomas Niel on 2021/11/27 12:09
     

Become a Contributor

If you follow a company closely and would like to share your knowledge, we would love your contributions. Register Now and start editing!

Tag Cloud

  1. AU:DTL
  2. AU:PNC
  3. AU:SSR
  4. Bangladesh
  5. BD:ACI
  6. BD:AMCL(PRAN)
  7. BD:BATBC
  8. BD:BERGERPBL
  9. BD:BEXIMCO
  10. BD:BSRMLTD
  11. BD:GP
  12. BD:KOHINOOR
  13. BD:LANKABAFIN
  14. BD:MARICO
  15. BD:PREMIERCEM
  16. BD:RBBL
  17. BD:RENATA
  18. BD:ROBI
  19. BD:SINGERBD
  20. BD:SQURPHARMA
  21. BD:WALTONHIL
  22. CA:ABX
  23. CA:AC
  24. CA:AEM
  25. CA:AFI
  26. CA:AGI
  27. CA:BAM.A
  28. CA:BCE
  29. CA:BLDP
  30. CA:BMO
  31. CA:BNS
  32. CA:BTO
  33. CA:CCO
  34. CA:CM
  35. CA:CNQ
  36. CA:CNR.TO
  37. CA:CP
  38. CA:CSU
  39. CA:CU
  40. CA:CVE
  41. CA:EMA
  42. CA:ENB
  43. CA:FFH
  44. CA:FM
  45. CA:FSV
  46. CA:FTS
  47. CA:GFL
  48. CA:GIB
  49. CA:GWO
  50. CA:IFC
  51. CA:IMO
  52. CA:K
  53. CA:LULU
  54. CA:MFC
  55. CA:MG
  56. CA:MRU
  57. CA:MX
  58. CA:NA
  59. CA:NG
  60. CA:NTR
  61. CA:OTEX
  62. CA:POW
  63. CA:PVG
  64. CA:QSR
  65. CA:RBA
  66. CA:RCI.A
  67. CA:RY
  68. CA:SHOP
  69. CA:SJR.B
  70. CA:SLF
  71. CA:SSRM
  72. CA:SU
  73. CA:T
  74. CA:TA
  75. CA:TARD
  76. CA:TD
  77. CA:TECK
  78. CA:TFII
  79. CA:TRI
  80. CA:TRP
  81. CA:WEED
  82. CA:X
  83. CA:YRI
  84. Canada
  85. CH:ALSN
  86. CH:NESN
  87. CIPLA
  88. DE:TIMA
  89. EU:CCAP
  90. EU:HHFA
  91. FR:CEN
  92. FR:HCO
  93. GB:AAL
  94. GB:ABDN
  95. GB:ABF
  96. GB:ADM
  97. GB:AHT
  98. GB:ANTO
  99. GB:AUTO
  100. GB:AUY
  101. GB:AV
  102. GB:AVST
  103. GB:AVV
  104. GB:AZN
  105. GB:BA
  106. GB:BARC
  107. GB:BATS
  108. GB:BDEV
  109. GB:BHP
  110. GB:BME
  111. GB:BP
  112. GB:CCH
  113. GB:CPG
  114. GB:CTO
  115. GB:DARK
  116. GB:DGE
  117. GB:FERG
  118. GB:GLEN
  119. GB:HL
  120. GB:HSBA
  121. GB:IHG
  122. GB:III
  123. GB:IMB
  124. GB:INCH
  125. GB:NWG
  126. GB:NXR
  127. GB:OCDO
  128. GB:REL
  129. GB:RKT
  130. GB:SGE
  131. GB:SGRO
  132. GB:SKG
  133. GB:SMIN
  134. GB:SN
  135. GB:STAN
  136. GB:STJ
  137. GB:ULVR
  138. Great Britain
  139. HK:0995
  140. HK:1052
  141. HK:107
  142. HK:189
  143. HK:548
  144. HK:819
  145. HK:995
  146. IN:3MINDIA
  147. IN:ADANITRANS
  148. IN:BHARATFORG
  149. IN:CIPLA
  150. IN:CROMPTON
  151. IN:GODREJIND
  152. IN:HDFCAMC
  153. IN:IDEA
  154. IN:INDUSTOWER
  155. IN:LICI
  156. IN:LUPIN
  157. IN:LUPINE
  158. IN:MFSL
  159. IN:MOFSL
  160. IN:MOTHERSUMI
  161. IN:MUTHOOTFIN
  162. IN:NATCOPHARM
  163. IN:NATIONALUM
  164. IN:NBCC
  165. IN:NESTLEIND
  166. IN:NIACL
  167. IN:NMDC
  168. IN:OBEROIRLTY
  169. IN:OFSS
  170. IN:PAGEIND
  171. IN:PAYTM
  172. IN:PEL
  173. IN:PETRONET
  174. IN:PFIZER
  175. IN:PGHH
  176. IN:PIDILITIND
  177. IN:PIIND
  178. IN:PNB
  179. IN:PNBHOUSING
  180. IN:POWERGRID
  181. IN:QUESS
  182. IN:RAMCOCEM
  183. IN:RELAXO
  184. IN:SAIL
  185. IN:SANOFI
  186. IN:SBILIFE
  187. IN:SIEMENS
  188. IN:SRF
  189. IN:SUPREMEIND
  190. IN:TATAPOWER
  191. IN:TECHM
  192. IN:TITAN
  193. IN:TORNTPHARM
  194. IN:TORNTPOWER
  195. IN:TRENT
  196. IN:TVSMOTOR
  197. IN:UBL
  198. IN:ULTRACEMCO
  199. IN:UNIONBANK
  200. IN:UPL
  201. IN:VBL
  202. IN:WHIRLPOOL
  203. IN:ZEEL
  204. India
  205. Ireland
  206. JP:1070
  207. JP:2654
  208. JP:4220
  209. JP:4734
  210. JP:6916
  211. SG:BCY
  212. SG:F13
  213. UK:IHG
  214. US:AABA
  215. US:AAOI
  216. US:AAPL
  217. US:AAUKF
  218. US:ABEO
  219. US:ABUS
  220. US:ACAD
  221. US:ACAN
  222. US:ACBFF
  223. US:ACDVF
  224. US:ACHN
  225. US:ACIA
  226. US:ACRX
  227. US:ADAP
  228. US:ADMP
  229. US:ADMS
  230. US:ADXS
  231. US:AEM
  232. US:AEZS
  233. US:AFMD
  234. US:AGEN
  235. US:AGI
  236. US:AGRX
  237. US:AGTK
  238. US:AKAO
  239. US:ALDR
  240. US:ALIM
  241. US:ALQA
  242. US:AMC
  243. US:AMD
  244. US:AMDA
  245. US:AMIGF
  246. US:AMMJ
  247. US:AMN
  248. US:AMPE
  249. US:AMRN
  250. US:AMRS
  251. US:AMZN
  252. US:ANCUF
  253. US:ANFGF
  254. US:ANLDF
  255. US:ANTH
  256. US:ANY
  257. US:APHQF
  258. US:AQMS
  259. US:AQSZF
  260. US:ARDX
  261. US:ARGS
  262. US:ARLZ
  263. US:ARNA
  264. US:ARRY
  265. US:ARWR
  266. US:ASBFF
  267. US:ASHTF
  268. US:ATDRY
  269. US:ATHX
  270. US:ATNM
  271. US:ATOS
  272. US:ATRS
  273. US:AUPH
  274. US:AUY
  275. US:AVASF
  276. US:AVEO
  277. US:AVEVF
  278. US:AVGR
  279. US:AVIR
  280. US:AVP
  281. US:AVVIY
  282. US:AVXL
  283. US:AXON
  284. US:AXSM
  285. US:AZN
  286. US:BABA
  287. US:BAC
  288. US:BAESF
  289. US:BAM
  290. US:BBRY
  291. US:BCE
  292. US:BCOR
  293. US:BCS
  294. US:BHC
  295. US:BHP
  296. US:BIOA
  297. US:BIOC
  298. US:BLCM
  299. US:BLDP
  300. US:BLEVF
  301. US:BLOZF
  302. US:BLPH
  303. US:BLRX
  304. US:BMO
  305. US:BMRPF
  306. US:BNS
  307. US:BP
  308. US:BPMX
  309. US:BSTG
  310. US:BTDPF
  311. US:BTE
  312. US:BTG
  313. US:BTI
  314. US:BW
  315. US:BZUN
  316. US:CALA
  317. US:CANN
  318. US:CAPR
  319. US:CARA
  320. US:CASC
  321. US:CATB
  322. US:CBDS
  323. US:CCJ
  324. US:CEI
  325. US:CERC
  326. US:CERU
  327. US:CHK
  328. US:CIE
  329. US:CLDX
  330. US:CLF
  331. US:CLOV
  332. US:CLSN
  333. US:CLVS
  334. US:CM
  335. US:CMPGF
  336. US:CNAB
  337. US:CNAT
  338. US:CNBX
  339. US:CNI
  340. US:CNQ
  341. US:CNSWF
  342. US:CORT
  343. US:CP
  344. US:CPRX
  345. US:CRBP
  346. US:CRIS
  347. US:CRMD
  348. US:CTRV
  349. US:CU
  350. US:CUR
  351. US:CVE
  352. US:CVSI
  353. US:CYCC
  354. US:CYTR
  355. US:CYTX
  356. US:DCTH
  357. US:DEPO
  358. US:DGEAF
  359. US:DMPI
  360. US:DRKTF
  361. US:DRYS
  362. US:DVAX
  363. US:DXTR
  364. US:DYLLF
  365. US:EARS
  366. US:ECYT
  367. US:EDIT
  368. US:EGLT
  369. US:EKSO
  370. US:ELVT
  371. US:ENB
  372. US:ENDP
  373. US:ENRT
  374. US:ETRM
  375. US:EVC
  376. US:EXEL
  377. US:FATE
  378. US:FB
  379. US:FERG
  380. US:FINL
  381. US:FIT
  382. US:FLXN
  383. US:FOLD
  384. US:FQVLF
  385. US:FRFHF
  386. US:FSV
  387. US:FTR
  388. US:FTS
  389. US:FVE
  390. US:FWDG
  391. US:GALE
  392. US:GALT
  393. US:GBHPF
  394. US:GBT
  395. US:GERN
  396. US:GFL
  397. US:GIB
  398. US:GILD
  399. US:GLDFF
  400. US:GLEN
  401. US:GLYC
  402. US:GME
  403. US:GNCA
  404. US:GNMX
  405. US:GOLD
  406. US:GPRO
  407. US:GSAT
  408. US:GVXXF
  409. US:GWLIFU
  410. US:HLTH
  411. US:HMNY
  412. US:HRGLF
  413. US:HRTX
  414. US:HSBA
  415. US:HTGM
  416. US:HTZ
  417. US:HUSA
  418. US:ICPT
  419. US:IDRA
  420. US:IDXG
  421. US:IFCZF
  422. US:IHG
  423. US:IMBBF
  424. US:IMGN
  425. US:IMMU
  426. US:IMNP
  427. US:IMO
  428. US:IMUC
  429. US:INFI
  430. US:INPX
  431. US:INSM
  432. US:INVA
  433. US:ITEK
  434. US:IVITF
  435. US:JD
  436. US:JOBS
  437. US:JVA
  438. US:KAYS
  439. US:KEM
  440. US:KERX
  441. US:KGC
  442. US:KTOS
  443. US:KTOV
  444. US:LKM
  445. US:LODE
  446. US:LPCN
  447. US:LULU
  448. US:LXRP
  449. US:MACK
  450. US:MARA
  451. US:MBOT
  452. US:MBRX
  453. US:MDCL
  454. US:MDCO
  455. US:MEET
  456. US:MEIP
  457. US:MEOH
  458. US:MFC
  459. US:MGA
  460. US:MGWFF
  461. US:MNKD
  462. US:MOMO
  463. US:MQPXF
  464. US:MRNS
  465. US:MRTX
  466. US:MSFT
  467. US:MTRAFU
  468. US:MU
  469. US:MVIS
  470. US:MZOR
  471. US:NAK
  472. US:NBEV
  473. US:NBRV
  474. US:NEOS
  475. US:NG
  476. US:NH
  477. US:NLNK
  478. US:NMUS
  479. US:NTIOF
  480. US:NTNX
  481. US:NTR
  482. US:NVAX
  483. US:NVCN
  484. US:NVDA
  485. US:NVRO
  486. US:NWBO
  487. US:NWG
  488. US:NXTTF
  489. US:NYMX
  490. US:OCDGF
  491. US:OCLR
  492. US:OCUL
  493. US:OGRMF
  494. US:OMER
  495. US:ONCS
  496. US:ONTX
  497. US:ONVO
  498. US:OPGN
  499. US:OPHT
  500. US:OPK
  501. US:OPTT
  502. US:OTEX
  503. US:OTIC
  504. US:P
  505. US:PANXF
  506. US:PBYI
  507. US:PETS
  508. US:PETX
  509. US:PGNX
  510. US:PHOT
  511. US:PIRS
  512. US:PLSE
  513. US:PLUG
  514. US:PLX
  515. US:PRTO
  516. US:PSDV
  517. US:PTI
  518. US:PTN
  519. US:PTX
  520. US:PUFXF
  521. US:PULM
  522. US:PVG
  523. US:QRSRF
  524. US:QSR
  525. US:RAD
  526. US:RBA
  527. US:RBGPF
  528. US:RCI
  529. US:RCKT
  530. US:RDHL
  531. US:RDUS
  532. US:RELX
  533. US:REPH
  534. US:RGLS
  535. US:RIGL
  536. US:RNN
  537. US:RNVA
  538. US:ROX
  539. US:RSSFF
  540. US:RTTR
  541. US:RY
  542. US:SCYX
  543. US:SDRL
  544. US:SEGXF
  545. US:SENS
  546. US:SESN
  547. US:SGBY
  548. US:SGGEF
  549. US:SGMO
  550. US:SGYP
  551. US:SHOP
  552. US:SJR
  553. US:SKLN
  554. US:SLF
  555. US:SLFPF
  556. US:SMFTF
  557. US:SMGKF
  558. US:SNAP
  559. US:SNN
  560. US:SPHS
  561. US:SPLIF
  562. US:SPRWF
  563. US:SQ
  564. US:SRNA
  565. US:SRNE
  566. US:SRRA
  567. US:SSRM
  568. US:STJPF
  569. US:STLY
  570. US:STML
  571. US:STMP
  572. US:STRRF
  573. US:SU
  574. US:SWN
  575. US:SYN
  576. US:TAC
  577. US:TBQBF
  578. US:TD
  579. US:TECK
  580. US:TENX
  581. US:TEVA
  582. US:TFII
  583. US:TGOPF
  584. US:TGTX
  585. US:THCBF
  586. US:TK
  587. US:TMXXF
  588. US:TNDM
  589. US:TOP
  590. US:TRI
  591. US:TROV
  592. US:TRP
  593. US:TRTC
  594. US:TRVN
  595. US:TRXC
  596. US:TSG
  597. US:TSLA
  598. US:TTM
  599. US:TTNP
  600. US:TTNQY
  601. US:TU
  602. US:TVTY
  603. US:TWTR
  604. US:TXMD
  605. US:UBQU
  606. US:UNXL
  607. US:VAPE
  608. US:VBLT
  609. US:VCEL
  610. US:VDQSF
  611. US:VPCO
  612. US:VSTM
  613. US:WIT
  614. US:WLDFF
  615. US:WLL
  616. US:WMIH
  617. US:WMT
  618. US:XGTI
  619. US:XON
  620. US:XTNT
  621. US:XXII
  622. US:ZGNX
  623. US:ZSAN
  624. US:ZYNE
This site is funded and maintained by Fintel.io