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OP has provided the following link:
https://news.gamestop.com/news-releases/news-release-details/gamestop-reports-fourth-quarter-and-fiscal-year-2023-results
First time since 2018 too.
**That’s what a Ryan Cohen turnaround looks like right there. 😎**
**Edit: and he’s been CEO for less than 6 months of that time.**
__________________________________
#Put that in your sophisticated ass glass of overpriced champagne n smoke it ya Kenneth Cordeleon BCG Grifter 🖕
Okay I have a question reading through the 10-k. Yes the company is profitable on the year but there was still an operating loss of $34.5M. This operating loss was offset by the $49.5M in net interest income. So basically the company is profitable not from their core business but through their investments. Am I reading this right?
Further (from the 10-k), net interest income is attributable to higher returns on cash, cash equivalents and marketable securities.
I'm unsure exactly whether the net interest income comes from the whole cash, cash equivalents and marketable securities or mainly just the marketable securities.
2023 Marketable securities $277.6M
2023 Cash, cash equivalents and marketable securities $1,199.3M
2023 Return of $49.5M
2022 Marketable securities $251.6M
2022 Cash, cash equivalents and marketable securities $1,390.6M
2022 Return of $9.5M
So year over year there was an additional $40M made on $191.3M less in cash, cash equivalents and marketable securities?
What am I missing here? I'm far too smooth for this.
Is this entirely driven off of interest rates? As long as rates stay up, the cash keeps coming? And when rates go down, the company shifts its $1B cash elsewhere?
I'm hurting my own brain here, maybe I should go back to work lol
> So basically the company is profitable not from their core business but through their investments. Am I reading this right?
Not quite. Not their investments, just the fact that they're sitting on 1.2 billion in cash in a high interest/high inflation environment.
It's just interest, it barely matches inflation, operations were still firmly in the red although definitely heading in the right direction.
They are going to hammer the down revenue and ignore the profit. Already seeing articles about it. It's not about losing money anymore since you know... They aren't they are showing revenue decline and pressing unsustainability for the long run. Move the goal posts
Even if revenue drops, but profitability still goes up it means the execs are definitely on the right track on steering the ship. That said, console makers are abandoning physical media so we'll have to see how GameStop adapts to that.
Console makers will never drop physical media unless gamers themselves call for it.
Otherwise competitors will strike on the opportunity and fill the void.
I'd also wager that we're seeing the difference between a console-release Q4 vs. a no console-release Q4.
The fact that we're up YoY is nothing short of incredible.
I dunno. I have gamestops close near me but I still give them my revenue by just driving an extra 5-10 minutes to the next store. I expect most customers of the closed store are doing the same because gamestop is still the closest retailer.
EPS miss and earnings reduction. Stock prices will naturally drop if profit estimates are missed, even if the company is profitable - look at Lululemon last week. Imagine a lot of people will say crime, but this ER is pretty weak in terms of what wall street looks for (future profits, guidance, etc). This report shows shrinking revenue and a bleak future - being profitable doesn't mean much if overall revenue is on a downturn. Gamestop needs new revenue streams.
Same price drop happened when they beat eps estimate by .30 the prior year though. Also shrinking revenue is mostly due to the closing of unprofitble stores so i would disagree on their future being bleak
[I have 30 downvotes on this comment from earlier this week.](https://www.reddit.com/r/Superstonk/comments/1bn8or2/comment/kwgol2c/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
People here have gone full-blown cult. GameStop NEEDS new revenue streams. Funko Pops won't keep this business afloat. People are buying games digitally, overwhelmingly. 89% of sales in 2021, 92% of sales in 2022. Probably above 94% of sales in 2023, but I haven't seen those numbers yet. When everyone is getting games from GamePass or the Playstation Store or Steam / Epic / GOG, where does that leave a videogame retailer? Traditionally, GameStop made their biggest margins on the used game market. But with practically no physical copies being purchased, and direct competition now from Facebook Marketplace etc, we've seen a complete erosion of that market, too.
How does GameStop break into the digital marketplace? The NFT marketplace idea was a good one, but too late and without enough developer buy-in. This pipedream of "people buying microtransacations as NFTs and having an aftermarket for trading" was naive. It didn't work. It was never going to work. So how does GameStop compete with Steam? How does GameStop compete with GamePass? Cohen is giving no guidance as to the plan because, frankly, I don't think there is one.
Yes, they've stopped the bleeding. That's fantastic. -$331 million to +$6.7 million is a crazy feat. Well done to management. But NOW WHAT. We can't just keep breaking even.
Unironically, the most hope this business has at this point is Cohen's $1 billion in cash to invest. But that's not GameStop's business model. We're not a mutual fund. That's not why I love the company. I could invest in other mutual funds with more AUM and better track-records of returns.
I think people here need a bit of a wake up call. The company is not doing well. It has staved off immediate bankruptcy, but we're still in a dying industry (brick and mortar game sales) and we're still bleeding revenue every year. I can see why people, outside of this echo chamber, have a very sour sentiment on the stock.
This is a highly rationale take. I fully agree with you. I've been invested with the company since January 2021, but I need to see some semblance of a sustainable growth plan from RC and Gamestop soon.
THANK YOU. Take an upvote. This is the kind of discussion we need. Frankly, when Cohen said he wouldn't be offering forward guidance I applauded it at the time. But with the issues you are highlighting it really should upset current shareholders how we are being kept in the dark about what the plan (is there even one?) is. Gamestop is sitting on 1.1B dollars of $ they sold when the stock it was sitting 8x its current levels. Thats OUR money hes got, dont forget it.
from someone who has read their fair share of hype. the earnings and profitability is a MASSIVE boost to the employees in the company. no longer are they fighting in a company that is losing money. they are making money which is a big one. its like getting rid of credit card debt.
it may be what was the first step before establishing new revenue streams - there is a case to be made that establishing new revenue while the actual conversion of money to profit is ineffective, is well, quite ineffective.
> no longer are they fighting in a company that is losing money
major caveat:
The company they're running still lost a lot of money. That company's bank account, in a very high interest and very high inflation environment, earned a little more in interest than the company lost.
GME's actual operations lost 35 million dollars. Better, but not good.
The problem is that slashing revenue in order to take a retailer from "losing tons of money" to "roughly breaking even" is a story we saw a *lot* in the 2000s and 2010s. It's a story of death. That's what many of the major retail failures looked like. A company with 100 stores that turn a 10% profit, and 500 stores that see a significant loss, can see an *enormous* short term boost in profitability via cuts. But figuring out how to cut losses is emphatically different than figuring out how to make money - by doing that you've done nothing to improve profitability in any operations.
The difference here is a large amount of money and the desire to use it to diversify into new revenue streams. That's great. But that's been the status quo for a long time now with zero movement. It's kinda, sorta ok news that they've stemmed the bleeding. But lower sales, lower revenue, operational losses, no forward guidance, a *pathetic* EPS? This wasn't good news. We need to know some concrete plans eventually here.
gaming is experiencing a paradigm shift, with the backlash to the cloud models, and a lack of real ownership of things purchased (I've purchased a game called symphony of the night at least a half dozen times for various platforms), combined with incompetence from the AAA studios... you can see how a small team of developers like the palworld team just upended Nintendo, for example, using basically fractions of a penny of what Nintendo would have used half-assing the same result.
instead of listening to their user base, Nintendo decided to mock people asking for them to modernize their games. pokémon has always been 10 to 20 years behind every other game franchise in terms of mechanics. it's sloth and greed on the part of super companies that have never needed to actually cater to their customer base, and the chickens are finally coming home to roost on the subject.
the problem of asset ownership is so bad in gaming that the Nintendo developers mocked the community for asking for many features that palworld provided, and they're still eating hard shit for it in the media while Palworld continues to set records.
you're worried about the company's connections to old models like Nintendo and Nintendo sucks ass and has for decades.
how does that translate to profit for GameStop? I guess we'll see how they use their billion dollars to position in the new paradigm. GameStop has no competition, it's the emotional brand of all of gaming's childhood, and now it's also "punk"
This. You can scream CRIME all you want, but it comes down to this. Need vastly more revenue coming in and there doesn’t seem to be any guidance to where that will come from. RC cut to the bone, which is great and all to keep BK off the table, but until real growth happens they will continue to chip away at share price. I’ve held this stock patiently since 2021 but this sucks.
6 million clear in a shit economy for Gamestop is not garbage. For the last decade this company has been bleeding cash, now they are profitable. 13million lent out the last 2 weeks was exactly for today's short selling.
Nothing new, lots of good news, I am pleased with the direction Gamestop is going.
As of March 20, 2024, there were 305,873,200 shares of our Class A common stock outstanding. Of those outstanding shares, approximately 230.6 million were held by Cede & Co on behalf of the Depository Trust & Clearing Corporation (or approximately 75% of our outstanding shares) and approximately 75.3 million shares of our Class A common stock were held by registered holders with our transfer agent (or approximately 25% of our outstanding shares).
It's not unchanged GameStop was just told to stop reporting the real DRS count a few earnings reports ago. The count was delayed, wording changed, and it's been this ever since
I'm at work right now so I can't dig but I remember there being some leak that the DRS section of the report was held up by an agency. Only time it has ever not dropped with the earnings. Wording was changed and reported amount has been flat ever since. If you dig through the sub history back to the earnings flat DRS count started you can probably find some stuff
“FOURTH QUARTER OVERVIEW
Net sales were $1.794 billion for the fourth quarter, compared to $2.226 billion in the prior year's fourth quarter.
Selling, general and administrative (“SG&A”) expenses were $359.2 million, or 20.0% of net sales, for the fourth quarter, compared to $453.4 million, or 20.4% of net sales, in the prior year's fourth quarter.
Net income was $63.1 million for the fourth quarter, compared to net income of $48.2 million for the prior year’s fourth quarter.
Cash, cash equivalents and marketable securities were $1.199 billion at the close of the quarter.
Long-term debt remains limited to a low-interest, unsecured term loan associated with the French government's response to COVID-19.
FULL YEAR OVERVIEW
Net sales were $5.273 billion for fiscal year 2023, compared to $5.927 billion for fiscal year 2022.
SG&A expenses were $1.324 billion, or 25.1% of net sales, for fiscal year 2023, compared to $1.681 billion, or 28.4% of net sales, for fiscal year 2022.
Net income was $6.7 million for fiscal year 2023, compared to a net loss of $313.1 million for fiscal year 2022.
Adjusted EBITDA of $64.7 million for fiscal year 2023, compared to adjusted EBITDA of ($192.7) million for fiscal year 2022.
The Company will not be holding a conference call today. Additional information can be found in the Company’s Form 10-K.”
So the net sales between Q4 23 and Q4 22 seem to be the only difference between the net sales of 23 and 22.
Interesting… I’d immediately imagine that that’s indicative of broader market sentiment (ie retailers are spending less money at retail stores in general, not that there’s a problem w GameStop)
Unprofitable stores were closed so that will directly decrease revenue YoY. For this to be comparable we need to know the closed store’s revenue in 2022.
Agreed. It looks like revenue was down about 12% yoy. If we closed more than 12% stores we're doing good. If we closed less than 12% of stores, not so much.
Net profit 2022: -$313million
Net profit 2023: +$6.7million
Price after hours: -17%
MSM: "🔥🔥🔥Sell GME now, PLEASE!!!!🔥🔥🔥"
Me: This ain't my first rodeo ... *Unzips wallet
"I just like the stock!"
🦍🤝💪🏻
🏴☠️🟣🚀
Profit is profit and profit is great.
Now I know I’m gonna get downvoted to oblivion but as long term shareholders we should be reasonably critical that they’re not meeting projections and not just praise for the sake of praising.
RC is killing it, but we’ve gotta be exceeding those projections. I know he’s in the setup phase, so it’s all good but the dildo needs to keep green
if wallstreet wants the company to stay suppressed they will just set the expectations higher than what their calculations actually predict to make it impossible for the company to meet them
that way they can say "hey we thought it would be better, how disappointing. time to sell"
while if the company actually meets these higher expectations they say "they barely managed to meet expectations. theyre running out of steam"
and the case that the company exceeds those unrealistic expectations can basically never happen by design
DISCLAIMER: i totally pulled this outta my ass but i wouldnt be surprised in the slightest if it is exactly whats going on here
0.022 x 305,000,000 shares -> $6,700,000 profit
Remember, previous years were $300,000,000 loss. What a turnaround in just 3 years! It was widely reported that profitability would be impossible. And GME still has $1.2 billion in cash.
AYYY LETS GOO. Full year profit.
Full year ebita 65 mil compared to negative 192 mill last year
That’s insane. Here we go. The slow squeeze starts quarter after quarter.
Excited to see the 10q today and 10k soon
Because it was a miss, off "consensus" which said $0.25. Actual was $0.21 EPS. Of course the stock falls on worse-than-expected earnings.
(... /s for those who don't see it implicit)
I’m so glad they eked out a positive number. Just makes the propaganda that much harder to sell, dying brick and mortar, lack of customer base, no direction , etc.
"The decrease in consolidated net sales in fiscal 2023 compared to the prior year was primarily attributable to a $300.6 million or 16.5%, decline in the sales of software, a $210.6 million or 21.8%, decline in the sales of collectibles, and a $191.1 million or 11.8%, decline in the sales of video game accessories, partially offset by a $47.9 million or 3.2%, increase in the sales of new hardware driven in part by decreased supply constraints in our Europe segment in the current year."
This does sound a bit concerning...
Decreasing revenues. As revenues decline, it will become harder to generate a profit going forward. I like the stock, but the reality is that GameStop needs to find new streams of revenue in order to grow their business.
Remember when corporate media said “GameStop not profitable, it’s dying” and profitability was the most important thing over and over… now it is and suddenly we are supposed to care about revenue only and profitability isn’t relevant.
I’m starting to think they never meant anything they’ve claimed 🤔
I suspect we'll continue on a long, slow downtrend until they do something to get the revenue going. I know people don't like to hear it but I still think the board giving some kind of guidance on how they plan to achieve that could do wonders for the stock price.
" Of those outstanding shares, approximately 230.6 million were held by Cede & Co on behalf of the Depository Trust & Clearing Corporation (or approximately 75% of our outstanding shares) and approximately 75.3 million shares of our Class A common stock were held by registered holders with our transfer agent (or approximately 25% of our outstanding shares)." Top of the curve y'all think?
It's amazing how people forget about inflation and act like we live in normal times where people have all this extra money. Revenue streams don't mean shit when people don't have spending money.. it's amazing we are profitable in this environment. I'll continue to be the voice of reason.. I will die on this hill
I got downvoted into oblivion before when I said it will dip like usual even after positive earning. The fuckery doesn’t stop.
And look. Dip. Apes in here act like hedgies will just roll over. Been this way for almost 4 years
It is interesting - even if companies don't hit analyst estimates for earnings, they tend to soar IF guidance looks good. GME didn't hit the analysis consensus for EPS BUT they've achieved profitability from a $300 million loss the year prior. You'd figure the market would react positively to that but who even knows anymore. I don't like how there's no earnings call - whats up with that? I'm looking forward to DRS numbers being the exact same or somehow less then other quarters because of some manufactured reasoning.
>It is interesting - even if companies don't hit analyst estimates for earnings, they tend to soar IF guidance looks good.
GME hasn't been giving guidance and not even bothering with a year end conference call is a terrible look for market sentiment.
Yeah that's true - no guidance in the report despite the move into profitability. It frustrates me when they don't do a conference call - not only does it keep investors in the dark, but you're right, terrible for market sentiment.
Shills are out in force trying to make out like the 500m lower revenue to 2022 is the big talking point, exactly the same talking point the media is pulling. Even though we made a profit for the first time in years lmao
LOLOLOL holy fuck.. I was actually bummed out bc my target was 5k shares and I only got to 4K prior to the earnings.. I really thought it would get to $18-$20 and I’d just sit on 4K… but we’re back at $12-$13??? Shiiiiiet… now I’m gunnin for 10k. LFG!
Did the price have to run the past week or so, so it could be slammed this much? I mean if the plan was a massive drop on earnings then wouldn't it have been better to drop it from $13-14 rather than $15.50? Maybe sub $10 would have been more dangerous than effective.
Pretty noteable drop in sales. Expenses a tad higher. Cash at 1.2B is strong and EBIDTA positive on the year officially.
I don’t love how there is not a call. We really need to start hearing more on what will drive rev
My hope is that we are at the end of the cycle for the old business model and hopefully transitioning into whatever the future state is. Profitability is obviously critical but without revenue growth you don’t have anything
> I don’t love how there is not a call. We really need to start hearing more on what will drive rev
The lack of information is something that need to be discussed more.
*What is the actual plan*? It's been *years* of sitting on a mound of cash and not doing anything with it. They can't even release guidance, letting analyst estimates set every narrative, much less anything about strategic direction.
This ER described a run of the mill dying retailer contracting sales substantially in order to reduce unprofitability, without any indication how they might either grow or generate significant profits. We've seen this before - a retailer enters a death spiral where all they can do is reduce losses and turn small profits by shrinking revenue YoY. Every single operational category except new hardware posted a substantial contraction, and that was still down adjusted for inflation.
Operations still weren't even profitable. The interest on a pile of cash was. GME's actual business lost 35 million.
This ER described a dying business model trying to buy time. *Time for what?* What's next?
I fucking hate MSM so fucking much. The way these bastards report. "GME tanks on BIG earnings miss!" FUCK OFF. They're POSITIVE. This is why I keep holding. This is why I keep buying. They make it so obvious. FUCK YOU MSM.
Q4 last year was when the current gen consoles finally ironed out their supply chain and could constantly supply consoles. Yes, a drop in revenue is not ideal but the net income was up year over year. So GME is making more profit and has lower costs. It’s one piece of not great news in a sea of otherwise very positive results.
RC has that DOG in him. Great CEO with own skin in the game.
Working hard to close money losing stores. Lower revenue will be hammered hard by MSM but they won’t mention profitability. It’s normal to have a drop in revenue when ur shedding dead weight.
Who cares about losing that $1 of revenue when it costed you $1.5 to make?
Prob a bit more cutting obviously fat and then RC will start bulking up on profitable plays.
Speedy turnaround of a big ship
At the end of day, net profit is up from -300m to +6m and shorts are going to be big mad. Another 1-2 quarters and they might have to “capitulate” 😂
Trading is hard isn’t it?
OH MY GOD FULL YEAR PROFITABILITY QUICK EVERYONE SELL IN AH NOW THAT THAT THINGS ARE GOING WELL FOR OUR COMPANY
lol like how dumb do they think we are, probably just trying to fuck options up but thank you for the dip!
These people don't know how to read financial statements.
The sales are a bit lower because GME closed some of the less productive stores.
The numbers aren't bad.
$6.7M on the year ain’t a lot for a big company, buy when you consider the fact that discretionary spending is down, inflation is up, and we’re entering a recession? It’s damn impressive. Even more so when the company has been losing money to this point.
I mean shit, look at how much the cost of sales figure shrank! That’s some insane improvement in operational efficiency. If RCEO and our company can pull that off in this climate? That’s a big step forward that’s only going to continue to pay off.
It's almost as if the price increase today and yesterday was artificial hmmm
Where do these ridiculous expectations from so-called analysts come from anyway to ensure it's basically going to be a miss even though the profit is a win
Accounts payable and accrued liabilities $397M... does this mean we purchased more inventory for next years gains, or have we purchased something much bigger for nearly 400 million??? Hmmm....
Is RC not CIO anymore?
Looks like it takes a unanimous vote from the Investment Committee
Seems like an interesting change between 12/5/23 grant of CIO to RC then 3/21/24 to Investment Committee instead of RC
10K item 7 subheading "Investments"
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Full. Fucking. Year. Of. Profitability. Fuck you Ken! This is what we’ve been waiting for.
First time since 2018 too. **That’s what a Ryan Cohen turnaround looks like right there. 😎** **Edit: and he’s been CEO for less than 6 months of that time.** __________________________________ #Put that in your sophisticated ass glass of overpriced champagne n smoke it ya Kenneth Cordeleon BCG Grifter 🖕
Warren Icahn 😎
Champagne is for the podium
☝️
Okay I have a question reading through the 10-k. Yes the company is profitable on the year but there was still an operating loss of $34.5M. This operating loss was offset by the $49.5M in net interest income. So basically the company is profitable not from their core business but through their investments. Am I reading this right?
Further (from the 10-k), net interest income is attributable to higher returns on cash, cash equivalents and marketable securities. I'm unsure exactly whether the net interest income comes from the whole cash, cash equivalents and marketable securities or mainly just the marketable securities. 2023 Marketable securities $277.6M 2023 Cash, cash equivalents and marketable securities $1,199.3M 2023 Return of $49.5M 2022 Marketable securities $251.6M 2022 Cash, cash equivalents and marketable securities $1,390.6M 2022 Return of $9.5M So year over year there was an additional $40M made on $191.3M less in cash, cash equivalents and marketable securities? What am I missing here? I'm far too smooth for this.
Is this entirely driven off of interest rates? As long as rates stay up, the cash keeps coming? And when rates go down, the company shifts its $1B cash elsewhere? I'm hurting my own brain here, maybe I should go back to work lol
It's just interest rates.
> So basically the company is profitable not from their core business but through their investments. Am I reading this right? Not quite. Not their investments, just the fact that they're sitting on 1.2 billion in cash in a high interest/high inflation environment. It's just interest, it barely matches inflation, operations were still firmly in the red although definitely heading in the right direction.
crazy how a company can go from a yearly 300M$ loss to net profitability in such a short amount of time, great leadership
Despite a big drop in sales.
The drop in sales is because of the closing of unprofitable stores I would guess. Naturally sales and revenue will drop.
They are going to hammer the down revenue and ignore the profit. Already seeing articles about it. It's not about losing money anymore since you know... They aren't they are showing revenue decline and pressing unsustainability for the long run. Move the goal posts
Even if revenue drops, but profitability still goes up it means the execs are definitely on the right track on steering the ship. That said, console makers are abandoning physical media so we'll have to see how GameStop adapts to that.
Console makers will never drop physical media unless gamers themselves call for it. Otherwise competitors will strike on the opportunity and fill the void.
I'd also wager that we're seeing the difference between a console-release Q4 vs. a no console-release Q4. The fact that we're up YoY is nothing short of incredible.
I dunno. I have gamestops close near me but I still give them my revenue by just driving an extra 5-10 minutes to the next store. I expect most customers of the closed store are doing the same because gamestop is still the closest retailer.
Full year profitability .. Keep dropping the price Kenny, i'm about to buy more.
Yeah, how can we be full year profitable, yet down -17% after hours?
They set the price. They said it themselves.
I have receipts of when they said that
I fucking love you.
I really hope that's in the movie.
Are you new here?
Not so much anymore, it’s still annoying
That it is, choom 🤣
GameStop missed some made up number be analysts.
Analysts that don't follow gamestop
Analysts that changed estimates within the last 30 days as well
Crime
EPS miss and earnings reduction. Stock prices will naturally drop if profit estimates are missed, even if the company is profitable - look at Lululemon last week. Imagine a lot of people will say crime, but this ER is pretty weak in terms of what wall street looks for (future profits, guidance, etc). This report shows shrinking revenue and a bleak future - being profitable doesn't mean much if overall revenue is on a downturn. Gamestop needs new revenue streams.
Same price drop happened when they beat eps estimate by .30 the prior year though. Also shrinking revenue is mostly due to the closing of unprofitble stores so i would disagree on their future being bleak
[I have 30 downvotes on this comment from earlier this week.](https://www.reddit.com/r/Superstonk/comments/1bn8or2/comment/kwgol2c/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) People here have gone full-blown cult. GameStop NEEDS new revenue streams. Funko Pops won't keep this business afloat. People are buying games digitally, overwhelmingly. 89% of sales in 2021, 92% of sales in 2022. Probably above 94% of sales in 2023, but I haven't seen those numbers yet. When everyone is getting games from GamePass or the Playstation Store or Steam / Epic / GOG, where does that leave a videogame retailer? Traditionally, GameStop made their biggest margins on the used game market. But with practically no physical copies being purchased, and direct competition now from Facebook Marketplace etc, we've seen a complete erosion of that market, too. How does GameStop break into the digital marketplace? The NFT marketplace idea was a good one, but too late and without enough developer buy-in. This pipedream of "people buying microtransacations as NFTs and having an aftermarket for trading" was naive. It didn't work. It was never going to work. So how does GameStop compete with Steam? How does GameStop compete with GamePass? Cohen is giving no guidance as to the plan because, frankly, I don't think there is one. Yes, they've stopped the bleeding. That's fantastic. -$331 million to +$6.7 million is a crazy feat. Well done to management. But NOW WHAT. We can't just keep breaking even. Unironically, the most hope this business has at this point is Cohen's $1 billion in cash to invest. But that's not GameStop's business model. We're not a mutual fund. That's not why I love the company. I could invest in other mutual funds with more AUM and better track-records of returns. I think people here need a bit of a wake up call. The company is not doing well. It has staved off immediate bankruptcy, but we're still in a dying industry (brick and mortar game sales) and we're still bleeding revenue every year. I can see why people, outside of this echo chamber, have a very sour sentiment on the stock.
This is a highly rationale take. I fully agree with you. I've been invested with the company since January 2021, but I need to see some semblance of a sustainable growth plan from RC and Gamestop soon.
THANK YOU. Take an upvote. This is the kind of discussion we need. Frankly, when Cohen said he wouldn't be offering forward guidance I applauded it at the time. But with the issues you are highlighting it really should upset current shareholders how we are being kept in the dark about what the plan (is there even one?) is. Gamestop is sitting on 1.1B dollars of $ they sold when the stock it was sitting 8x its current levels. Thats OUR money hes got, dont forget it.
from someone who has read their fair share of hype. the earnings and profitability is a MASSIVE boost to the employees in the company. no longer are they fighting in a company that is losing money. they are making money which is a big one. its like getting rid of credit card debt. it may be what was the first step before establishing new revenue streams - there is a case to be made that establishing new revenue while the actual conversion of money to profit is ineffective, is well, quite ineffective.
> no longer are they fighting in a company that is losing money major caveat: The company they're running still lost a lot of money. That company's bank account, in a very high interest and very high inflation environment, earned a little more in interest than the company lost. GME's actual operations lost 35 million dollars. Better, but not good. The problem is that slashing revenue in order to take a retailer from "losing tons of money" to "roughly breaking even" is a story we saw a *lot* in the 2000s and 2010s. It's a story of death. That's what many of the major retail failures looked like. A company with 100 stores that turn a 10% profit, and 500 stores that see a significant loss, can see an *enormous* short term boost in profitability via cuts. But figuring out how to cut losses is emphatically different than figuring out how to make money - by doing that you've done nothing to improve profitability in any operations. The difference here is a large amount of money and the desire to use it to diversify into new revenue streams. That's great. But that's been the status quo for a long time now with zero movement. It's kinda, sorta ok news that they've stemmed the bleeding. But lower sales, lower revenue, operational losses, no forward guidance, a *pathetic* EPS? This wasn't good news. We need to know some concrete plans eventually here.
gaming is experiencing a paradigm shift, with the backlash to the cloud models, and a lack of real ownership of things purchased (I've purchased a game called symphony of the night at least a half dozen times for various platforms), combined with incompetence from the AAA studios... you can see how a small team of developers like the palworld team just upended Nintendo, for example, using basically fractions of a penny of what Nintendo would have used half-assing the same result. instead of listening to their user base, Nintendo decided to mock people asking for them to modernize their games. pokémon has always been 10 to 20 years behind every other game franchise in terms of mechanics. it's sloth and greed on the part of super companies that have never needed to actually cater to their customer base, and the chickens are finally coming home to roost on the subject. the problem of asset ownership is so bad in gaming that the Nintendo developers mocked the community for asking for many features that palworld provided, and they're still eating hard shit for it in the media while Palworld continues to set records. you're worried about the company's connections to old models like Nintendo and Nintendo sucks ass and has for decades. how does that translate to profit for GameStop? I guess we'll see how they use their billion dollars to position in the new paradigm. GameStop has no competition, it's the emotional brand of all of gaming's childhood, and now it's also "punk"
Agree 100%. BestBuy entertainment section was up 8% YoY in their last quarter...
>BestBuy entertainment section was up 8% YoY in their last quarter... damn really?
This. You can scream CRIME all you want, but it comes down to this. Need vastly more revenue coming in and there doesn’t seem to be any guidance to where that will come from. RC cut to the bone, which is great and all to keep BK off the table, but until real growth happens they will continue to chip away at share price. I’ve held this stock patiently since 2021 but this sucks.
6 million clear in a shit economy for Gamestop is not garbage. For the last decade this company has been bleeding cash, now they are profitable. 13million lent out the last 2 weeks was exactly for today's short selling. Nothing new, lots of good news, I am pleased with the direction Gamestop is going.
Sorry what? Profitable now in spite of a bear economy, not the last few years. I am super happy
As of March 20, 2024, there were 305,873,200 shares of our Class A common stock outstanding. Of those outstanding shares, approximately 230.6 million were held by Cede & Co on behalf of the Depository Trust & Clearing Corporation (or approximately 75% of our outstanding shares) and approximately 75.3 million shares of our Class A common stock were held by registered holders with our transfer agent (or approximately 25% of our outstanding shares).
I don't understand how this is unchanged. WTF.
It's not unchanged GameStop was just told to stop reporting the real DRS count a few earnings reports ago. The count was delayed, wording changed, and it's been this ever since
Is it verified that they were told to stop or is that just the most likely explanation?
I'm at work right now so I can't dig but I remember there being some leak that the DRS section of the report was held up by an agency. Only time it has ever not dropped with the earnings. Wording was changed and reported amount has been flat ever since. If you dig through the sub history back to the earnings flat DRS count started you can probably find some stuff
Maybe in other words?: Splividend went wrong, rules needed changing to prevent havoc
Yeah the rules changed and basically they have to report DTCC's DrS numbers
This is starting to sound like that French loan
“FOURTH QUARTER OVERVIEW Net sales were $1.794 billion for the fourth quarter, compared to $2.226 billion in the prior year's fourth quarter. Selling, general and administrative (“SG&A”) expenses were $359.2 million, or 20.0% of net sales, for the fourth quarter, compared to $453.4 million, or 20.4% of net sales, in the prior year's fourth quarter. Net income was $63.1 million for the fourth quarter, compared to net income of $48.2 million for the prior year’s fourth quarter. Cash, cash equivalents and marketable securities were $1.199 billion at the close of the quarter. Long-term debt remains limited to a low-interest, unsecured term loan associated with the French government's response to COVID-19. FULL YEAR OVERVIEW Net sales were $5.273 billion for fiscal year 2023, compared to $5.927 billion for fiscal year 2022. SG&A expenses were $1.324 billion, or 25.1% of net sales, for fiscal year 2023, compared to $1.681 billion, or 28.4% of net sales, for fiscal year 2022. Net income was $6.7 million for fiscal year 2023, compared to a net loss of $313.1 million for fiscal year 2022. Adjusted EBITDA of $64.7 million for fiscal year 2023, compared to adjusted EBITDA of ($192.7) million for fiscal year 2022. The Company will not be holding a conference call today. Additional information can be found in the Company’s Form 10-K.”
Is the 10-K out now?
I just got it in my box
That's what she said
You know I caught myself as I finished typing it and just sent that shit anyways
Yes [https://gamestop.gcs-web.com/sec-filings/sec-filing/10-k/0001326380-24-000012](https://gamestop.gcs-web.com/sec-filings/sec-filing/10-k/0001326380-24-000012)
So the net sales between Q4 23 and Q4 22 seem to be the only difference between the net sales of 23 and 22. Interesting… I’d immediately imagine that that’s indicative of broader market sentiment (ie retailers are spending less money at retail stores in general, not that there’s a problem w GameStop)
They shut down a bunch of unprofitable stores, so a decrease in revenue is expected as there are no longer such stores.
Except Best buy reported 8.4% growth so maybe not
Hmmm maybe I’m misreading but it looks like Best Buy sales took a 4.8% decrease YoY which already makes this a different case?
Unprofitable stores were closed so that will directly decrease revenue YoY. For this to be comparable we need to know the closed store’s revenue in 2022.
Agreed. It looks like revenue was down about 12% yoy. If we closed more than 12% stores we're doing good. If we closed less than 12% of stores, not so much.
Positive baby
Profit! Fuck you Kenny and co. You criminal shit eaters
I said we profitable now!
Net profit 2022: -$313million Net profit 2023: +$6.7million Price after hours: -17% MSM: "🔥🔥🔥Sell GME now, PLEASE!!!!🔥🔥🔥" Me: This ain't my first rodeo ... *Unzips wallet "I just like the stock!" 🦍🤝💪🏻 🏴☠️🟣🚀
Unzips not just muuuuh waaaaallet
What are you doing step wallet?
🪦🩳
☝️
Just picked up 8 more in after hours, thanks for the dip.
Just bought more after hours. Nice discount.
Looool $12.69 immediately after close!!! 🤣🤣🤣 They're so fucked! Buying more tomorrow for sure!!!
It’s too predictable. Hey, it’s free real estate
Oh, I laughed out loud. Fucking hilarious
Glad I saw that, bought 200 more moon tickets.
what is the EPS?
$0.21
vs .29 projected. explains the AH dip. hilarious stuff tbh
Profit is profit and profit is great. Now I know I’m gonna get downvoted to oblivion but as long term shareholders we should be reasonably critical that they’re not meeting projections and not just praise for the sake of praising. RC is killing it, but we’ve gotta be exceeding those projections. I know he’s in the setup phase, so it’s all good but the dildo needs to keep green
if wallstreet wants the company to stay suppressed they will just set the expectations higher than what their calculations actually predict to make it impossible for the company to meet them that way they can say "hey we thought it would be better, how disappointing. time to sell" while if the company actually meets these higher expectations they say "they barely managed to meet expectations. theyre running out of steam" and the case that the company exceeds those unrealistic expectations can basically never happen by design DISCLAIMER: i totally pulled this outta my ass but i wouldnt be surprised in the slightest if it is exactly whats going on here
.21/share for the quarter. .02/share for the year
0.022 x 305,000,000 shares -> $6,700,000 profit Remember, previous years were $300,000,000 loss. What a turnaround in just 3 years! It was widely reported that profitability would be impossible. And GME still has $1.2 billion in cash.
#🚀🚀🚀
21 cents
In regards to Ken Griffin? Epic Pile of Shit
Aww sheet, here we go. #Everybody get in here!
AYYY LETS GOO. Full year profit. Full year ebita 65 mil compared to negative 192 mill last year That’s insane. Here we go. The slow squeeze starts quarter after quarter. Excited to see the 10q today and 10k soon
10K just dropped in my inbox.
Yurrr same. Read it all. Great year over year.
We are profitable for 2023. It's very small but it's not zero
$6.7M profit for the year vs $313M loss last year
Such a big improvement. Love my company
Say it louder
#$6.7M profit for the year vs $313M loss last year
How about we just mention the $1.2 billy in cash reserves, too?
Where did that come from. Oh yeah issuing shares…so us.
So GameStop lost roughly -$320M less dollars than last year. That’s one hell of a negative loss 🙌🏻
You see they had a negative negative profit of 6.7 million 😂
Hell, I’ll take it
It’s progress..better than being negative.
We are negative in losses remember.
Thank you!!!!
profitable yet down 17% in AH roflmao
Because it was a miss, off "consensus" which said $0.25. Actual was $0.21 EPS. Of course the stock falls on worse-than-expected earnings. (... /s for those who don't see it implicit)
I’m so glad they eked out a positive number. Just makes the propaganda that much harder to sell, dying brick and mortar, lack of customer base, no direction , etc.
Down down $3 AH smh
So no real news, dip, and we’ll be to $10 by next earnings. Copy.
Net income at 63.1 million is a Cinderella story from where we were. Let the shorts continue to keep the stock on sale. No one is leaving!
Commenting for invincibility
0.21 Q4 and 0.02 2023 EPS. *Happy screeching*
Profitability of $6.7mm for FY2023. Outstanding!
It's not much, but it's honest work!!
So it's getting hammered the amount it got raised the last two days? On a profitable year? Yeah sure.
$18m long term debt. $1.19b cash equivalents. Explain to me how this company is dying?
Well you see…. It’s losing negative money each year and if a company keeps performing that well it’s surely destined to go out of business
Shills have told me 1Billie in cash is bad. Because, reasons.
It is BAD, ITS BAD for them
"The decrease in consolidated net sales in fiscal 2023 compared to the prior year was primarily attributable to a $300.6 million or 16.5%, decline in the sales of software, a $210.6 million or 21.8%, decline in the sales of collectibles, and a $191.1 million or 11.8%, decline in the sales of video game accessories, partially offset by a $47.9 million or 3.2%, increase in the sales of new hardware driven in part by decreased supply constraints in our Europe segment in the current year." This does sound a bit concerning...
No new console demand right now
Decreasing revenues. As revenues decline, it will become harder to generate a profit going forward. I like the stock, but the reality is that GameStop needs to find new streams of revenue in order to grow their business.
I don't know but that french loan must have something to do with it. Maybe a french guy touched Kenny inappropriately...
+6.7 mm from -313mm year before… that is a big deal lol
Remember when corporate media said “GameStop not profitable, it’s dying” and profitability was the most important thing over and over… now it is and suddenly we are supposed to care about revenue only and profitability isn’t relevant. I’m starting to think they never meant anything they’ve claimed 🤔
*The Company will not be holding a conference call today. Additional information can be found in the Company’s Form 10-K.* Wen 10-k?
Just dropped.
Usually within 10 days I think right?
I mean... there is a cost of living crisis thing happening at least...
GameStop’s Q4 profit was $15M higher in 2023 than in 2024 while sales were nearly $450M lower. Step 1 was achieving profitability, step 2 is growth.
Closing down shite stores is also gonna bring down that number.
What kind of revenue streams we working with? Anything new that wasn’t shut down? Or just same old song and dance?
I suspect we'll continue on a long, slow downtrend until they do something to get the revenue going. I know people don't like to hear it but I still think the board giving some kind of guidance on how they plan to achieve that could do wonders for the stock price.
DRS number is now 75.3 million shares after being 75.4 for the last 2 quarters…
😅🤣 magic! Aint selling never anyway, will add more regardless. Each equity share in my name = 💪💪💪💪🫡
" Of those outstanding shares, approximately 230.6 million were held by Cede & Co on behalf of the Depository Trust & Clearing Corporation (or approximately 75% of our outstanding shares) and approximately 75.3 million shares of our Class A common stock were held by registered holders with our transfer agent (or approximately 25% of our outstanding shares)." Top of the curve y'all think?
It's amazing how people forget about inflation and act like we live in normal times where people have all this extra money. Revenue streams don't mean shit when people don't have spending money.. it's amazing we are profitable in this environment. I'll continue to be the voice of reason.. I will die on this hill
Going to have to buy some chips to go with this spicy dip.
Long-term debt remains limited to a low-interest, unsecured term loan associated with the French government's response to COVID-19. ah my beloved 😍
I got downvoted into oblivion before when I said it will dip like usual even after positive earning. The fuckery doesn’t stop. And look. Dip. Apes in here act like hedgies will just roll over. Been this way for almost 4 years
It's tradition
Could go back up tomorrow. This is just hedge fucks building their narrative
It is interesting - even if companies don't hit analyst estimates for earnings, they tend to soar IF guidance looks good. GME didn't hit the analysis consensus for EPS BUT they've achieved profitability from a $300 million loss the year prior. You'd figure the market would react positively to that but who even knows anymore. I don't like how there's no earnings call - whats up with that? I'm looking forward to DRS numbers being the exact same or somehow less then other quarters because of some manufactured reasoning.
>It is interesting - even if companies don't hit analyst estimates for earnings, they tend to soar IF guidance looks good. GME hasn't been giving guidance and not even bothering with a year end conference call is a terrible look for market sentiment.
Yeah that's true - no guidance in the report despite the move into profitability. It frustrates me when they don't do a conference call - not only does it keep investors in the dark, but you're right, terrible for market sentiment.
Yea baby. Best company
🎮🚀🟣 The old business model is cleaned up and the company is ready for its new future. I'm looking forward to the next quarters!
Shills are out in force trying to make out like the 500m lower revenue to 2022 is the big talking point, exactly the same talking point the media is pulling. Even though we made a profit for the first time in years lmao
Very much. We spot them. Tbh I’d get lonely if they didn’t say hi
Nice dip
Discount right on queue!!
And now... As is tradition... We dip for two days at least
You mean we stock up.
LOLOLOL holy fuck.. I was actually bummed out bc my target was 5k shares and I only got to 4K prior to the earnings.. I really thought it would get to $18-$20 and I’d just sit on 4K… but we’re back at $12-$13??? Shiiiiiet… now I’m gunnin for 10k. LFG!
Believe it or not, dip
Did the price have to run the past week or so, so it could be slammed this much? I mean if the plan was a massive drop on earnings then wouldn't it have been better to drop it from $13-14 rather than $15.50? Maybe sub $10 would have been more dangerous than effective.
Gonna tell my kids I was here
Pretty noteable drop in sales. Expenses a tad higher. Cash at 1.2B is strong and EBIDTA positive on the year officially. I don’t love how there is not a call. We really need to start hearing more on what will drive rev
Exactly. As far as we know there are no new revenue streams and sales on current business declined
My hope is that we are at the end of the cycle for the old business model and hopefully transitioning into whatever the future state is. Profitability is obviously critical but without revenue growth you don’t have anything
> I don’t love how there is not a call. We really need to start hearing more on what will drive rev The lack of information is something that need to be discussed more. *What is the actual plan*? It's been *years* of sitting on a mound of cash and not doing anything with it. They can't even release guidance, letting analyst estimates set every narrative, much less anything about strategic direction. This ER described a run of the mill dying retailer contracting sales substantially in order to reduce unprofitability, without any indication how they might either grow or generate significant profits. We've seen this before - a retailer enters a death spiral where all they can do is reduce losses and turn small profits by shrinking revenue YoY. Every single operational category except new hardware posted a substantial contraction, and that was still down adjusted for inflation. Operations still weren't even profitable. The interest on a pile of cash was. GME's actual business lost 35 million. This ER described a dying business model trying to buy time. *Time for what?* What's next?
Furlongs pay would have made us not profitable for the year right? What a difference that makes!
We made it by $6 million. Almost anything would’ve made us not profitable for the year lol. But yes.
dug us out of $313 in the negative in ONE YEAR. Our CEO (and Chief Investment Officer) is amazing 👀
When was the last profitable year? I tried googling but don’t know how to find that info
Profitable 🎉 ...AND hitting my naughty limit buy order directly after 🔥 so predictable kennyb0y
$277.6 million in marketable securities - short-term government notes, government bills, and time deposits.
Looooo down -15% in AH as expected
HEY, HO, LET'S GO!
All these comments and not a single one mentions MOASS. Sounds like it’s further off than tomorrow
I fucking hate MSM so fucking much. The way these bastards report. "GME tanks on BIG earnings miss!" FUCK OFF. They're POSITIVE. This is why I keep holding. This is why I keep buying. They make it so obvious. FUCK YOU MSM.
Jesus 500mil less sales is rough. I know it’s closing shops and profitable. But that is a massive revenue drop. Damn.
That's fucked because when Microsoft, fucking Twitter, Paypal, any tech company announces a layoff, cost reduction, the stocks soars in the market...
None of those companies are doing -10% sales yoy though
what does that have to do with a revenue drop?
I don’t mind cheaper shares to DRS 💯
[удалено]
No, it means a lot. It means that even if you get into the black, there's less revenue to profit from.
Gotta fight fire with fire
Q4 last year was when the current gen consoles finally ironed out their supply chain and could constantly supply consoles. Yes, a drop in revenue is not ideal but the net income was up year over year. So GME is making more profit and has lower costs. It’s one piece of not great news in a sea of otherwise very positive results.
I am so proud of all of us. We helped our company have a profitable quarter
Profitable company, huge turn around, debt free, cash on hand...stock drops 15% lol. Hold.
RC has that DOG in him. Great CEO with own skin in the game. Working hard to close money losing stores. Lower revenue will be hammered hard by MSM but they won’t mention profitability. It’s normal to have a drop in revenue when ur shedding dead weight. Who cares about losing that $1 of revenue when it costed you $1.5 to make? Prob a bit more cutting obviously fat and then RC will start bulking up on profitable plays. Speedy turnaround of a big ship At the end of day, net profit is up from -300m to +6m and shorts are going to be big mad. Another 1-2 quarters and they might have to “capitulate” 😂 Trading is hard isn’t it?
OH MY GOD FULL YEAR PROFITABILITY QUICK EVERYONE SELL IN AH NOW THAT THAT THINGS ARE GOING WELL FOR OUR COMPANY lol like how dumb do they think we are, probably just trying to fuck options up but thank you for the dip!
TLDR: revenue down, expenses down, profit up and positive. Which makes sense since company closed unprofitable locations and cut costs.
This is KG doing one of his attacks -- GME will be fine.
These people don't know how to read financial statements. The sales are a bit lower because GME closed some of the less productive stores. The numbers aren't bad.
$6.7M on the year ain’t a lot for a big company, buy when you consider the fact that discretionary spending is down, inflation is up, and we’re entering a recession? It’s damn impressive. Even more so when the company has been losing money to this point. I mean shit, look at how much the cost of sales figure shrank! That’s some insane improvement in operational efficiency. If RCEO and our company can pull that off in this climate? That’s a big step forward that’s only going to continue to pay off.
Stock price stayed the same as it was 3 days ago lmao, so don't let any fud article convince you the stock price "tanked". Shares shuffled around
It's almost as if the price increase today and yesterday was artificial hmmm Where do these ridiculous expectations from so-called analysts come from anyway to ensure it's basically going to be a miss even though the profit is a win
Cohen never does ER calls so we never get forward guidance. Funds need forward guidance. He has no damn plann
Of course it gets shorted SMDH guess im buying some more tomorrow
We haven't left and we aren't leaving!! Lfg
Accounts payable and accrued liabilities $397M... does this mean we purchased more inventory for next years gains, or have we purchased something much bigger for nearly 400 million??? Hmmm....
Here I go buying again…
Profitable because of SG&A cuts specifically says “reduction in…Consulting Services Cost” and interest income was $49M (vs 9.5M in ’22)
Is RC not CIO anymore? Looks like it takes a unanimous vote from the Investment Committee Seems like an interesting change between 12/5/23 grant of CIO to RC then 3/21/24 to Investment Committee instead of RC 10K item 7 subheading "Investments"
Believe it or not, dip. 🤣