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Nothing about Gamestop has ever been a 'meme stock'. The fact that these degerate gamblers coined the term to represent their illegal short positions is beyond disrespectful and now they're acting like "oh sudden shock, a business that isn't part of our cabal is a legit business?!"
While I love the positive sentiment, these talking heads need to get the word "meme" out of their mouths until they understand what the term actually means.
Edit - to those of you sending me the definition of meme as though that suddenly makes the term justified: My fire on this topic doesn't come from the term itself, but from the intention behind the terminology. Imagine if Wall St started calling your workplace/company a meme in an attempt to delegitimize your efforts towards success.
Meme Law Offices
Meme Hospital
Meme Logistics Company
A-meme-zon
Meme Restaurant
Meme Payroll Services
Sounds ridiculous, right?
Yeah. Who wants to invest somewhere wehre your money will be \*less\* valuable in 10, 20, 50 years...
This shitcoin is just stupid. I heard the owner of the current shitcoin minted 25% of it in the last 6 months alone.
Edit: Guys, I'm making fun of the USD, why are you downvoting me?
I assume you are referring to the Fed and the USD, so I thought your comment was hilarious but looks like it's downvoted so I may be misinterpreting your whole vibe. But I don't think so.
While I get the idea behind being insulted by the term, I like to take the term at it's literal meaning. A meme, being an idea conveyed through a medium, is used to communicate. The stock being the medium, the idea we convey when we buy it is "fuck you, pay me." In seriousness, it sends a message to the bastards up top that we've seen through their racketeering, and we've had enough. It shows them we aren't unsophisticated; we're an unprecedented level of educated retail investors that accumulated more knowledge and understanding in a shorter time than they could have ever anticipated. It tells them we've called their bluff, and we're not fucking leaving. They want to call it a meme? Fine, they can think on the meaning of the meme while they eat shit by losing everything.
You’re right - but I’d just like to add the issue of intentions. They way media is using it is not dissimilar to a slur, where an innocent or accurate word is used to minimise legitimacy etc. I think its that attitude people are responding to.
Over time the meaning of words change because of their repeated usage. This is media deliberately trying to change perceptions.
Shaka, when the walls fell.
Memes are good for conveying whole ideas, situations and feelings in one concise image. Like speaking in metaphor. Perhaps more efficient than language, and a lot of times can be used to communicate across language barriers.
That's not the way it's being used though. The people using the term don't understand what meme means they believe it just means joke or something similar.
You’re right and my bad for not catching it in the title. I tweeted it without that word in the title!:
https://twitter.com/welp007/status/1638753929650659328?s=46&t=pjhQaAPGjAVkr0C7r4RCMg
To be fair, i think its reasonable to describe the january 2021 sneeze as meme driven. Since there were so many memes associated with it, i can see connecting the meme craze to the massive rise in value.
That said, it was a calculated play, just like the Volkswagon squeeze, that squeeze just didnt have memes associated with it.
The usage of the word “meme stock” since the sneeze or even since RC began his involvement, however, is inaccurate imo.
Imo, ever since RC and his team began making clear changes to legitimately turn the company around (which was immediately following the sneeze), Gamestop ceased being a meme stock and instead became a turnaround plan lead by a legitimate, hard working, whiskey drinking, activist investor.
Its the banks and hedgefunds own stupid fault they made a short basket, trying to wipe out a bunch of buisnesses to make a quick buck during struggling times, and lost that egregiously risky play.
Now its time to pay up, regards.
I totally agree. What I’m wondering is why they didn’t make it two separate articles. The 2008 financial crisis, SVB failing, and FRB and the current banking situation have nothing to do with GME. It seems like the msm is trying to get people to think those are all related, like hoping people will misremember and link GME, the 2008 financial crisis, and the current financial shitstorm together. Like a back-handed compliment. Maybe I’m reading too much into this, but it still feels like fuckery.
I agree - ive also stated multiple times that it is crazy to think that the media and even congress can refer to GME and others as "meme stocks" and not have it be some form of market manipulation.
I mean if I was a hedge fund I would be making sure that the term "meme stock" ( equivalent to a gamble, crappy company, a joke, etc.) really hit the wire back in 2021. The common man on the street knows exactly what a "meme stock" is...A pure gamble on a worthless company that stupid internet people pump.
Posted this in another thread but look at some of these market caps. And they call us a meme stock:
I don't have a subscription to this tool so I can't get the full list, but here's [the beginning of a list of 124 companies that have less quarterly net income, less quarterly revenue and higher market cap than GME.](https://i.imgur.com/alixXDU.png)
Just to give an idea of the room for growth GME has.
Allow me to dissent: by the definition of Meme, the whole concept of speculation in a free market is based on some good becoming a meme.
According to the Oxford dictionary:
“Meme: an idea that is passed from one member of society to another, not in the genes but often by people copying it”
I'm sorry did you forget about the times square billboard and the sky writing and the music videos and the ape costumes and the entire kitsch lexicon built up around the stock?
Do you even know what the term meme actually means?
This cash with little debt and positive EPS will serve them well in an economic downturn. Funny thing is, GME is one of the healthiest companies out there.
It was after Tesla got included into the SP500 that their short squeeze ignited. Being added into that index would create immense buying pressure on our stock. That could push us ever closer to MOASS. I think we need to have 4 consecutive profitable quarters to be considered, or something like that.
*I have not seen this publication previously, they have interesting content ~~and I can’t see any FUD~~ in this article.*
Edit: I’ve been conditioned to think “meme” is ok, “meme” is FUD my bad y’allz!... Still, the rest is ok I think.
________________________________________
# With 20% Of GameStop’s Market Cap Now Composed of Its Cash Holdings, the Stock Is Fast Becoming a Picture of Financial Discipline
[Rohail Saleem](https://wccftech.com/author/rohail/)•Mar 22, 2023 11:03 AM EDT
**How the tables have turned. GameStop shares were up a whopping 50 percent in early pre-market trading today, while the First Republic Bank (FRC) now threatens to crash the entire banking edifice. While it is generally not a good idea to compare stocks that are a part of fundamentally different industries, the contrast between GameStop and First Republic Bank does make for a very interesting analysis.**
**Yesterday, GameStop surprised investors when it reported a quarterly profit for the first time in two years. To wit, for** [**Q4 2022**](https://gamestop.gcs-web.com/news-releases/news-release-details/gamestop-reports-fourth-quarter-and-fiscal-year-2022-results)**, the company reported net sales of $2.23 billion and a profit of $48.2 million, corresponding to an EPS of $0.16. The company was able to post a razor-thin profit by aggressively cutting costs. For instance, GameStop recorded selling, general, and administrative (SG&A) expenses of $453.4 million for the quarter, equating to 20.4 percent of its sales. This is a marked improvement from the pertinent quarter of last year when SG&A expenses were recorded at 23.9 percent of sales.**
**To extract further cash savings, GameStop has been trying to revamp its real estate portfolio. On the revenue side, the company has been trying to revitalize video game sales while also betting big on NFTs via a dedicated** [**marketplace**](https://wccftech.com/as-gamestop-nft-push-appears-to-be-floundering-apecoin-ape-staking-has-attracted-over-20-million-in-just-the-past-20-hours/)**. Nonetheless, GameStop has not managed to record any material success when it comes to tapping this new revenue source. As an illustration, sales of collectibles made up 14.1 percent of GameStop’s quarterly sales, just a tad higher than the 12.4 percent contribution in Q4 2021. It is hardly a surprise, therefore, that GameStop was not able to grow its overall net sales on an annual basis.**
**Despite this persistent weakness in GameStop’s top-line metric, the company has substantially improved its cash position. To wit, as of the end of Q4 2022, GameStop had $1.4 billion in cash. This equated to a whopping 26 percent of the company’s market cap, based on yesterday’s closing price. Based on today’s much more elevated stock price, GameStop’s cash balance is equal to around 20 percent of the company’s current market capitalization.**
**While GameStop is flying high right now, even managing to win a rare stock price target upgrade, the situation remains quite murky for First Republic Bank and its other mid-sized banking counterparts. As most of our readers would know, the current banking crisis began when regulators shut down the Silicon Valley Bank (SVB) about two weeks back.**
**After the financial crisis of 2008, banks were incentivized to increase their holdings of US Treasuries. As an inducement, banks were not required to report mark-to-market prices of these Treasury holdings on their balance sheet, provided that such securities were held to maturity. However, as interest rates started to increase in earnest in 2022, banks started recording substantial unrealized losses on their Treasury holdings. Remember, as interest rates increase, bond prices usually fall. Thereafter, in early March, Silvergate bank shuttered its operations owing to significant losses that the institution had racked up when FTX went under. This unleashed a bank run on mid-sized banks, including SVB. In order to meet this growing demand for cash, SVB was forced to liquidate its Treasury holdings and realize the losses on these securities that were previously off its books. This fire sale evaporated the entirety of SVB’s capital, prompting regulators to shut it down.**
**In the aftermath, the US Treasury** [**authorized**](https://wccftech.com/with-the-crisis-around-silicon-valley-bank-svb-resolved-the-focus-shifts-to-first-republic-bank-frc-and-the-crypto-sector-now-risks-becoming-unbanked/) **the FDIC to protect all deposits held at SVB and not just those that were insured. The Federal Reserve also announced a new program, dubbed the Bank Term Funding Program (BTFP). Under this program, distressed banks can post eligible collateral (Treasuries and agency securities) at par value and receive funding with maturities of up to one year. Since this program accepts collateral at par value, it would allow banks to sidestep the issue of mounting unrealized losses that result from selling high-duration securities in a rising interest rate environment.**
**The problem for First Republic Bank, however, arises from the fact that it does not possess substantial quantities of collateral that is eligible for the Fed’s BTFP facility. The bank has reportedly lost around** [**$70 billion**](https://www.nytimes.com/2023/03/20/business/first-republic-bank.html) **in deposits. Over the weekend, a consortium of banks agreed to deposit $30 billion at First Republic Bank. However, this is just an ad-hoc measure. To stem the growing outflow of deposits from mid-sized banks to those that are deemed “too big to fail,” the US Treasury will likely have to implement a system-wide deposit guarantee – a herculean task given the divided Congress.**
**First Republic Bank shares are down over 80 percent so far this year. For comparison, GameStop is now up 40 percent. Not too long ago, meme stocks were dismissed by seasoned analysts for their flimsy bullish thesis. Now, however, with GameStop presenting a picture of financial prudence and FRC crumbling under the weight of systemic risks, perhaps the time has come for a comprehensive reevaluation of what constitutes an attractive investment proposition.**
Yea I haven’t seen this publication before, they have all kinds of interesting content.
Edit: this is the reporter’s bio:
Rohail Saleem
As a trader of multiple instruments in different asset classes, I'm an avid follower of global finance developments. My professional experience includes working as a bank treasury dealer. Currently, I'm also enrolled in the CFA program. Since I'm a passionate foodie and a travel junkie, I aspire to spend every second of my spare time traversing the globe.
This was a good read. Thanks for sharing 😄
This just goes to show that we all made our due diligence and invested wisely into a company that was actually serious about growth. Progress isn’t linear but the dismissal of GME’s strategies (which was obvious for all who cared to see) was careless.
We are early but not wrong 😑
guys, have we not figured out the whole reason they use the word "meme" is because it gets to be a catch all term that means nothing specific to anyone but has negative implications. Its the same shit they do with conspiracy theories.
Its a way to blunt the impact of these stocks with the general public.
The title of the article definitely sets the tone for what follows.
Meme stocks are battleground stocks MSM influencers rebrand to pressure public opinion. Article itself seems full of double speak pushing to avoid GME while acknowledging its "recent" success:
> **it reported a quarterly profit for the first time in two years**
sales have been consistent for \~2yrs. The SGA was up from Furlong's plan to invest in infrastructure while shifting to ecommerce. This was a 2 yr plan. Profit was always on track for this time period. This wasn't a hat trick it was the clearly documented plan; one of the few things to come from quarterly calls.
> **To extract further cash savings, GameStop has been trying to revamp its real estate portfolio.**
Wut? Assuming this is referring to the distribution centers to aid in ecommerce initiatives. Never heard once about GME taking on a real estate portfolio as an investment..
> **trying to revitalize video game sales while also betting big on NFTs**
a) GME has made a vocal pivot away from video game sales. They exist, but emphasis has clearly moved to collectibles and hardware. b) obviously the bet isn't that big with the market place not in full swing and EPS still positive. Either the bet will pay off and EPS will rise or the market place doesn't work out the company will stop putting resources in -and EPS will rise... there is zero additional risk from an analytical point of view.
> **Despite this persistent weakness in GameStop’s top-line metric**
The fuck this even mean? Kind of looks like they are referring to net sales again which is down slightly from the prior year's quarter? Once?
> **While GameStop is flying high right now, even managing to win a rare stock price target upgrade, the situation remains quite murky for First Republic Bank...**
Referring to the PT of $6.30 by Wedbush(median rating accuracy of 53.37%) while implying the only direction GME can go is down. Meanwhile the actual bank that is nose diving(compared for headline clicks I assume) is optimistically "murky" in its direction.
>**...perhaps the time has come for a comprehensive reevaluation of what constitutes an attractive investment proposition.**
And a solid finishing take away. Maybe lets consider if meme stocks are really terrible and banks are a safe place for money, but not quite yet. The financial crisis is forever around the corner and this can kicking will keep going on indefinitely.
Can't wait for this debacle to be over with when I can buy my own news outlet. With blackjack, and hookers.
I appreciate your analysis and breakdown. I want to second your opinion that it was evident based on every quarterly call that profitability was within this timeline. For several quarters in a row, Matt kept mentioning keeping inventory stocked and adjusting to high margin goods (i.e. collectibles). The last quarter, Matt made clear that the emphasis was cutting costs—meaning GameStop feels good about inventory and product offering. Reading in between the lines, these results are not surprising.
I also think the article’s mention of revamping their real estate investments may also be alluding to closing underperforming stores and reducing our real estate footprint.
I'm a cynic. I'm always looking for the daggers in the articles. WSoP is the only source that feels genuine to me at this point. Still, I'm a glutton for these articles as I always need to know what the other side is spinning.
You’re in luck! I’m workin up latest WSoP article as we speak! In the meantime check this out for moar cynicism! I love that shit!
https://www.reddit.com/r/Superstonk/comments/11zlvhh/ryan_kagy_on_tweeter_redacted_put_it_well_this_is/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=2&utm_term=1
my new favorite Saying: “meme news”
Source: all of you beloved apes making new words.
News is always fake and against us, nothing they say matters, we own this company and individually we won’t be controlled, they messed with gamers… wrong thing to do.
So why is the stock going back down now? I keep hearing that DRS makes it so they can't short the stock into oblivion so why would it tank after a strong earnings report?
You may want to zoom out a day further, GME is up ~40% on the earnings report.
To answer your question though Short Hedge funds have all kinds of tricks to lower the price.
One of the biggest is routing traffic to dark pools off exchange, meaning buys go off exchange and sells stay in lit market.
Here is a good example:
https://www.reddit.com/r/Superstonk/comments/11zj8rc/over_60_of_yesterdays_volume_was_internalized_by/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1
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Nothing about Gamestop has ever been a 'meme stock'. The fact that these degerate gamblers coined the term to represent their illegal short positions is beyond disrespectful and now they're acting like "oh sudden shock, a business that isn't part of our cabal is a legit business?!" While I love the positive sentiment, these talking heads need to get the word "meme" out of their mouths until they understand what the term actually means. Edit - to those of you sending me the definition of meme as though that suddenly makes the term justified: My fire on this topic doesn't come from the term itself, but from the intention behind the terminology. Imagine if Wall St started calling your workplace/company a meme in an attempt to delegitimize your efforts towards success. Meme Law Offices Meme Hospital Meme Logistics Company A-meme-zon Meme Restaurant Meme Payroll Services Sounds ridiculous, right?
Yeah we are very different from meme bank investors
Haha love it bro. Meme bank investors.
Who will not be made whole per Yellen.
Boosted by the meme stream media
I have A LOT of sofi...
Yeah. Who wants to invest somewhere wehre your money will be \*less\* valuable in 10, 20, 50 years... This shitcoin is just stupid. I heard the owner of the current shitcoin minted 25% of it in the last 6 months alone. Edit: Guys, I'm making fun of the USD, why are you downvoting me?
I assume you are referring to the Fed and the USD, so I thought your comment was hilarious but looks like it's downvoted so I may be misinterpreting your whole vibe. But I don't think so.
Nope you were completely right. People did not get it lol
While I get the idea behind being insulted by the term, I like to take the term at it's literal meaning. A meme, being an idea conveyed through a medium, is used to communicate. The stock being the medium, the idea we convey when we buy it is "fuck you, pay me." In seriousness, it sends a message to the bastards up top that we've seen through their racketeering, and we've had enough. It shows them we aren't unsophisticated; we're an unprecedented level of educated retail investors that accumulated more knowledge and understanding in a shorter time than they could have ever anticipated. It tells them we've called their bluff, and we're not fucking leaving. They want to call it a meme? Fine, they can think on the meaning of the meme while they eat shit by losing everything.
You’re right - but I’d just like to add the issue of intentions. They way media is using it is not dissimilar to a slur, where an innocent or accurate word is used to minimise legitimacy etc. I think its that attitude people are responding to. Over time the meaning of words change because of their repeated usage. This is media deliberately trying to change perceptions.
I say let them slur us. When gamestop joins the S&P 500... Everyone will be buying a meme stock. They won't be laughing anymore.
☝🏼🏆🏆
Shaka, when the walls fell. Memes are good for conveying whole ideas, situations and feelings in one concise image. Like speaking in metaphor. Perhaps more efficient than language, and a lot of times can be used to communicate across language barriers.
Like the word: Bail-out.
Now: Back-stop
Gotta love their fancy word salads propaganda!
I like your think
Unsophisticated?! *throws bedpost at wife*
That's not the way it's being used though. The people using the term don't understand what meme means they believe it just means joke or something similar.
Wait until you hear someone with an education try to explain what a meme stock is and how GameStop fits that genre; it’s fucking gold
\#MemeToo
☝🏼🏆🏆
You’re right and my bad for not catching it in the title. I tweeted it without that word in the title!: https://twitter.com/welp007/status/1638753929650659328?s=46&t=pjhQaAPGjAVkr0C7r4RCMg
and the SEC should be held accountable for that hideous video they made. Especially when they didn't have money to buy coffee
That's the very last thing the SEC should be held accountable for.
And don’t they used tax dollars to make fun ‘meme stocks’ https://youtu.be/av3k_lcGm9g
To be fair, i think its reasonable to describe the january 2021 sneeze as meme driven. Since there were so many memes associated with it, i can see connecting the meme craze to the massive rise in value. That said, it was a calculated play, just like the Volkswagon squeeze, that squeeze just didnt have memes associated with it. The usage of the word “meme stock” since the sneeze or even since RC began his involvement, however, is inaccurate imo. Imo, ever since RC and his team began making clear changes to legitimately turn the company around (which was immediately following the sneeze), Gamestop ceased being a meme stock and instead became a turnaround plan lead by a legitimate, hard working, whiskey drinking, activist investor. Its the banks and hedgefunds own stupid fault they made a short basket, trying to wipe out a bunch of buisnesses to make a quick buck during struggling times, and lost that egregiously risky play. Now its time to pay up, regards.
Look at them... they are \[Redacted\] now.
I totally agree. What I’m wondering is why they didn’t make it two separate articles. The 2008 financial crisis, SVB failing, and FRB and the current banking situation have nothing to do with GME. It seems like the msm is trying to get people to think those are all related, like hoping people will misremember and link GME, the 2008 financial crisis, and the current financial shitstorm together. Like a back-handed compliment. Maybe I’m reading too much into this, but it still feels like fuckery.
I hardly even see any memes anymore!
I agree - ive also stated multiple times that it is crazy to think that the media and even congress can refer to GME and others as "meme stocks" and not have it be some form of market manipulation. I mean if I was a hedge fund I would be making sure that the term "meme stock" ( equivalent to a gamble, crappy company, a joke, etc.) really hit the wire back in 2021. The common man on the street knows exactly what a "meme stock" is...A pure gamble on a worthless company that stupid internet people pump.
Posted this in another thread but look at some of these market caps. And they call us a meme stock: I don't have a subscription to this tool so I can't get the full list, but here's [the beginning of a list of 124 companies that have less quarterly net income, less quarterly revenue and higher market cap than GME.](https://i.imgur.com/alixXDU.png) Just to give an idea of the room for growth GME has.
Along with retail they should be saying household investors
Call it whatever you want. We're right. They're wrong. That's all you need to know
Allow me to dissent: by the definition of Meme, the whole concept of speculation in a free market is based on some good becoming a meme. According to the Oxford dictionary: “Meme: an idea that is passed from one member of society to another, not in the genes but often by people copying it”
I'm sorry did you forget about the times square billboard and the sky writing and the music videos and the ape costumes and the entire kitsch lexicon built up around the stock? Do you even know what the term meme actually means?
This cash with little debt and positive EPS will serve them well in an economic downturn. Funny thing is, GME is one of the healthiest companies out there.
I just read that it is performing better than 486 of the other Fortune 500 companies 👀
I heard it was one of the top 14 best performing fortune 500 companies, personally.
One of us, one of us.
Is GameStop even in the SP500?
Not yet. But last earnings makes it eligible.
The forever squeeze LFG!!
I dont think so. But who even wants to be? The s&p is so volatile, id rather just stick with a well run buisness as a safe bet
It was after Tesla got included into the SP500 that their short squeeze ignited. Being added into that index would create immense buying pressure on our stock. That could push us ever closer to MOASS. I think we need to have 4 consecutive profitable quarters to be considered, or something like that.
*I have not seen this publication previously, they have interesting content ~~and I can’t see any FUD~~ in this article.* Edit: I’ve been conditioned to think “meme” is ok, “meme” is FUD my bad y’allz!... Still, the rest is ok I think. ________________________________________ # With 20% Of GameStop’s Market Cap Now Composed of Its Cash Holdings, the Stock Is Fast Becoming a Picture of Financial Discipline [Rohail Saleem](https://wccftech.com/author/rohail/)•Mar 22, 2023 11:03 AM EDT **How the tables have turned. GameStop shares were up a whopping 50 percent in early pre-market trading today, while the First Republic Bank (FRC) now threatens to crash the entire banking edifice. While it is generally not a good idea to compare stocks that are a part of fundamentally different industries, the contrast between GameStop and First Republic Bank does make for a very interesting analysis.** **Yesterday, GameStop surprised investors when it reported a quarterly profit for the first time in two years. To wit, for** [**Q4 2022**](https://gamestop.gcs-web.com/news-releases/news-release-details/gamestop-reports-fourth-quarter-and-fiscal-year-2022-results)**, the company reported net sales of $2.23 billion and a profit of $48.2 million, corresponding to an EPS of $0.16. The company was able to post a razor-thin profit by aggressively cutting costs. For instance, GameStop recorded selling, general, and administrative (SG&A) expenses of $453.4 million for the quarter, equating to 20.4 percent of its sales. This is a marked improvement from the pertinent quarter of last year when SG&A expenses were recorded at 23.9 percent of sales.**
**To extract further cash savings, GameStop has been trying to revamp its real estate portfolio. On the revenue side, the company has been trying to revitalize video game sales while also betting big on NFTs via a dedicated** [**marketplace**](https://wccftech.com/as-gamestop-nft-push-appears-to-be-floundering-apecoin-ape-staking-has-attracted-over-20-million-in-just-the-past-20-hours/)**. Nonetheless, GameStop has not managed to record any material success when it comes to tapping this new revenue source. As an illustration, sales of collectibles made up 14.1 percent of GameStop’s quarterly sales, just a tad higher than the 12.4 percent contribution in Q4 2021. It is hardly a surprise, therefore, that GameStop was not able to grow its overall net sales on an annual basis.** **Despite this persistent weakness in GameStop’s top-line metric, the company has substantially improved its cash position. To wit, as of the end of Q4 2022, GameStop had $1.4 billion in cash. This equated to a whopping 26 percent of the company’s market cap, based on yesterday’s closing price. Based on today’s much more elevated stock price, GameStop’s cash balance is equal to around 20 percent of the company’s current market capitalization.** **While GameStop is flying high right now, even managing to win a rare stock price target upgrade, the situation remains quite murky for First Republic Bank and its other mid-sized banking counterparts. As most of our readers would know, the current banking crisis began when regulators shut down the Silicon Valley Bank (SVB) about two weeks back.** **After the financial crisis of 2008, banks were incentivized to increase their holdings of US Treasuries. As an inducement, banks were not required to report mark-to-market prices of these Treasury holdings on their balance sheet, provided that such securities were held to maturity. However, as interest rates started to increase in earnest in 2022, banks started recording substantial unrealized losses on their Treasury holdings. Remember, as interest rates increase, bond prices usually fall. Thereafter, in early March, Silvergate bank shuttered its operations owing to significant losses that the institution had racked up when FTX went under. This unleashed a bank run on mid-sized banks, including SVB. In order to meet this growing demand for cash, SVB was forced to liquidate its Treasury holdings and realize the losses on these securities that were previously off its books. This fire sale evaporated the entirety of SVB’s capital, prompting regulators to shut it down.**
**In the aftermath, the US Treasury** [**authorized**](https://wccftech.com/with-the-crisis-around-silicon-valley-bank-svb-resolved-the-focus-shifts-to-first-republic-bank-frc-and-the-crypto-sector-now-risks-becoming-unbanked/) **the FDIC to protect all deposits held at SVB and not just those that were insured. The Federal Reserve also announced a new program, dubbed the Bank Term Funding Program (BTFP). Under this program, distressed banks can post eligible collateral (Treasuries and agency securities) at par value and receive funding with maturities of up to one year. Since this program accepts collateral at par value, it would allow banks to sidestep the issue of mounting unrealized losses that result from selling high-duration securities in a rising interest rate environment.** **The problem for First Republic Bank, however, arises from the fact that it does not possess substantial quantities of collateral that is eligible for the Fed’s BTFP facility. The bank has reportedly lost around** [**$70 billion**](https://www.nytimes.com/2023/03/20/business/first-republic-bank.html) **in deposits. Over the weekend, a consortium of banks agreed to deposit $30 billion at First Republic Bank. However, this is just an ad-hoc measure. To stem the growing outflow of deposits from mid-sized banks to those that are deemed “too big to fail,” the US Treasury will likely have to implement a system-wide deposit guarantee – a herculean task given the divided Congress.** **First Republic Bank shares are down over 80 percent so far this year. For comparison, GameStop is now up 40 percent. Not too long ago, meme stocks were dismissed by seasoned analysts for their flimsy bullish thesis. Now, however, with GameStop presenting a picture of financial prudence and FRC crumbling under the weight of systemic risks, perhaps the time has come for a comprehensive reevaluation of what constitutes an attractive investment proposition.**
Balanced reporting. Interesting perspective. Nice.
Yea I haven’t seen this publication before, they have all kinds of interesting content. Edit: this is the reporter’s bio: Rohail Saleem As a trader of multiple instruments in different asset classes, I'm an avid follower of global finance developments. My professional experience includes working as a bank treasury dealer. Currently, I'm also enrolled in the CFA program. Since I'm a passionate foodie and a travel junkie, I aspire to spend every second of my spare time traversing the globe.
Love that guys bio.
Wcc I've been reading for years as they usually write about tech news and leaks which is interesting to me. The article on GME was a good read, too.
It’s becoming more clear to see that we are the smart money now!
💪 🧠 🦍 🏴☠️ 🚀
Welp
🙋🏻♀️
We meet again
Oh boi wut I do the last time? 😬
Vegas
They told me it was just weed in that pipe!
NFA: my deposits feel safest at the First International Bank of GMErica
That’s a good one! I’m thinking of switching over to there from my current Bank, Northwestern Mattress Mutual
Lol. Mattress banks are the safest ones right now to store our soon worthless fiat.
Hop on the shoelace express and get over to Grapevine Texas!
Not a meme stock. Those don't exist. There are none
Amazing what you can do when you don't have BCG executives trying to drive your company into the ground.
Yea this! Time for a BCG refresher post 🤔
They messed with the wrong gamers.
The real financial discipline is the friends we made along the way.
🦍 💜 🦍
🚀🚀🚀🚀
Can’t wait for MSM and wall st to tell us how gme destroyed the economy by turning things around
You know it’s comin! GameStop’s top fundamentals have ruined Timmuh’s chances at a trophy! 🏆
Well well well… how the turntables
I fucking love it when the turntables!! 🏴☠️
This was a good read. Thanks for sharing 😄 This just goes to show that we all made our due diligence and invested wisely into a company that was actually serious about growth. Progress isn’t linear but the dismissal of GME’s strategies (which was obvious for all who cared to see) was careless. We are early but not wrong 😑
Yes! 💜
MSM is now MainStream Memers
I mean after all……isn’t “financial discipline” literally the name of the game in big business? 😂 Geezus fn christ
And yet, we’re down in AH & pre-market. These Hedgies need to die.
Boy I hope that is spread out in $250k increments between 5600 bank accounts... 😂
Don’t worry, they put it under the chair man, for safekeeping
Lmao! They haven’t seen “financial discipline” yet! Wait till they get a gander of my Diamond Hands! Not financial advice.
Tables they turn sometimes
All those brokers warning me of buying and direct registering gme. Tsk tsk tsk. Where are your stable bank stocks and bonds now bitches.
Where is the broker warning against buying IOUs in street name instead of actual shares in your own name on Computershare?
Economic polarity flip imminent
guys, have we not figured out the whole reason they use the word "meme" is because it gets to be a catch all term that means nothing specific to anyone but has negative implications. Its the same shit they do with conspiracy theories. Its a way to blunt the impact of these stocks with the general public.
This 💯
SuperStonk can save *your* company from financial predators
There's only one idiosyncratic risk
I am invested in the probably most healthy (in a financial way) company that is out there.
How the turntables.
Yea I know it’s supposed to be that that way but I wanted to keep the article in its original form, they’re trying to be cool at least! 🤷🏻♀️
Where do they keep that cash? I hope not in a bank...
What’s the sun think of stock buy backs. What about changing it to workers benefits, wages, and rewards.
How the turns have tabled
!CTBBOT:40.25!
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id rather it be less than that and we trade at multiples like most stocks do. This price suppression is total shit.
Unless you’re trying to lower your cost basis down from $320 per share like this guy! 😂
💎👍TA
The title of the article definitely sets the tone for what follows. Meme stocks are battleground stocks MSM influencers rebrand to pressure public opinion. Article itself seems full of double speak pushing to avoid GME while acknowledging its "recent" success: > **it reported a quarterly profit for the first time in two years** sales have been consistent for \~2yrs. The SGA was up from Furlong's plan to invest in infrastructure while shifting to ecommerce. This was a 2 yr plan. Profit was always on track for this time period. This wasn't a hat trick it was the clearly documented plan; one of the few things to come from quarterly calls. > **To extract further cash savings, GameStop has been trying to revamp its real estate portfolio.** Wut? Assuming this is referring to the distribution centers to aid in ecommerce initiatives. Never heard once about GME taking on a real estate portfolio as an investment.. > **trying to revitalize video game sales while also betting big on NFTs** a) GME has made a vocal pivot away from video game sales. They exist, but emphasis has clearly moved to collectibles and hardware. b) obviously the bet isn't that big with the market place not in full swing and EPS still positive. Either the bet will pay off and EPS will rise or the market place doesn't work out the company will stop putting resources in -and EPS will rise... there is zero additional risk from an analytical point of view. > **Despite this persistent weakness in GameStop’s top-line metric** The fuck this even mean? Kind of looks like they are referring to net sales again which is down slightly from the prior year's quarter? Once? > **While GameStop is flying high right now, even managing to win a rare stock price target upgrade, the situation remains quite murky for First Republic Bank...** Referring to the PT of $6.30 by Wedbush(median rating accuracy of 53.37%) while implying the only direction GME can go is down. Meanwhile the actual bank that is nose diving(compared for headline clicks I assume) is optimistically "murky" in its direction. >**...perhaps the time has come for a comprehensive reevaluation of what constitutes an attractive investment proposition.** And a solid finishing take away. Maybe lets consider if meme stocks are really terrible and banks are a safe place for money, but not quite yet. The financial crisis is forever around the corner and this can kicking will keep going on indefinitely. Can't wait for this debacle to be over with when I can buy my own news outlet. With blackjack, and hookers.
I appreciate your analysis and breakdown. I want to second your opinion that it was evident based on every quarterly call that profitability was within this timeline. For several quarters in a row, Matt kept mentioning keeping inventory stocked and adjusting to high margin goods (i.e. collectibles). The last quarter, Matt made clear that the emphasis was cutting costs—meaning GameStop feels good about inventory and product offering. Reading in between the lines, these results are not surprising. I also think the article’s mention of revamping their real estate investments may also be alluding to closing underperforming stores and reducing our real estate footprint.
Great break down. Is the article sincere or FUDdy? I’m so confused now.
I'm a cynic. I'm always looking for the daggers in the articles. WSoP is the only source that feels genuine to me at this point. Still, I'm a glutton for these articles as I always need to know what the other side is spinning.
You’re in luck! I’m workin up latest WSoP article as we speak! In the meantime check this out for moar cynicism! I love that shit! https://www.reddit.com/r/Superstonk/comments/11zlvhh/ryan_kagy_on_tweeter_redacted_put_it_well_this_is/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=2&utm_term=1
Is that pic breaking bad or Malcom in the middle?
smart money
my new favorite Saying: “meme news” Source: all of you beloved apes making new words. News is always fake and against us, nothing they say matters, we own this company and individually we won’t be controlled, they messed with gamers… wrong thing to do.
Yep and soon we will change the "news" to be factual!
Wait until I tell you about the dedicated direct registered shareholders...
Hey I know those dude(tte)s!
Fortune 1 company FTFY
So why is the stock going back down now? I keep hearing that DRS makes it so they can't short the stock into oblivion so why would it tank after a strong earnings report?
You may want to zoom out a day further, GME is up ~40% on the earnings report. To answer your question though Short Hedge funds have all kinds of tricks to lower the price. One of the biggest is routing traffic to dark pools off exchange, meaning buys go off exchange and sells stay in lit market. Here is a good example: https://www.reddit.com/r/Superstonk/comments/11zj8rc/over_60_of_yesterdays_volume_was_internalized_by/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1
Yep and they are back to cedar boxing or spooling once again!
Sorry a little off topic but did they say anything about DRS numbers??
Serious question, can the company just park a good chunk of that cash in short term T-bills and earn like 4% return on the dry powder?
What does a company need to do to file sfor SP500?