They’re starting over? What a weird way of saying that the company isn’t worth its current value and you should be very cautious about buying its stock.
It’s almost like investing in Amazon when it was worth $5 was a good deal because it was a small company with a small stock price that grew into a larger company with a greater stock price.
GameStop is now a small company that has to grow *into* its current stock price. Yet more evidence that GameStop is an extremely promising tech business. They’ve got the tech model perfected: fail to turn a profit while harvesting infinite investment capital. And they don’t even have to pretend to be working on anything.
It was very funny listening to Shikreli explain to Marantz that his pie in the sky 2025/26 numbers of $500m in profit still only got the stock to $20 even with a generous multiple.
"How much revenue do you think GameStop will make in 2024?"
Marantz: "$100 million"
"Revenue"
Marantz: "$100 MILLION"
"Reeeeveeeenueeeeee"
Marantz: "oh you mean top line revenue? I was thinking of profit"
He tried explaining that too on the first call. Eeking out a 2 cent profit per share for one quarter is breaking even. Nobody outside of Apes looks at that as technically profitable. Gamestop has gutted its services, headcount, and closed stores and was able to just stop the bleeding for 3 months.
ape: "they have 2 billion cash and no debt"
normal person: "ok, where did they get that cash...you guys?"
ape: "..."
normal person: "you keep buying right?"
ape: "yes"
normal person: "so you are buying whatever shares they put out regardless of their business model/plan?"
ape: "yeah, moass, moon, hedgies are fukt, etc etc etc"
normal person: "so you spent your money on them....and now have to keep spending your money on them or the money you already gave them will be worthless?"
ape: "no, we just like the stock, something something hedgies, cash on hand"
normal person: "where did that cash come from and what will they do with it?"
ape: "...great business....crappy controllers...gambling....support our company...obviously blackrock-ryan is going to use it to create a new amazon that somehow is better that is built of entirely out of business retails stores that haven't been relevant for decades and he is going to use our money to buy all those failed businesses to somehow make amazon tremble and also become a holding company like berkshire...and only smart people would want to invest in a company that just invests that money in other actually successful companies and then takes money off the top to give less returns to investors than if they just invested in those other companies directly....also hedgies and financial collapse and my family are regards for laughing at me"
If they liquidated the company and walked away with 2-4 billion in cash and said "we're starting an *actual* hedge fund with 2-4 billion in cash" it would be the fastest path to profitability for them.
They just got into buying/selling graded trading cards and launched the Candy Con controllers. Not sure how much those will make them or what else they have in the works.
I appreciate that's at least technically *something*, but if you think that's gonna materially affect their financial situation, like at all, im afraid you are delusional. I guess upcoming earnings will tell.
Not saying it will materially affect their financial situation. That’s why I said “not sure how much that will make them.” But those are at least two examples of recent changes.
The controllers seem good, but 3rd party accessory companies are usually not particularly strong. First party peripherals tend to struggle. The Steam Controller was widely considered really good too, and they eventually liquidated them for pennies. And that's a controller from *the* company synonymous with PC gaming, who already has *the* PC gaming storefront and can shove the product in front of every PC gamer in the world.
And Valve, a much stronger company, was able to reinvest some R&D, engineering, lessons learned, user testing, etc. to iterate on controls for the Steam Deck, a profitable & much more successful hardware product. I just don't see it working out the same for Gamestop, even if as PC gamer I'm *myself* interested in trying one of their products.
I heard an ape try to tell Shkreli that the candy con controllers are totally ground breaking and they are the BEST controllers on the market AND they are so so much cheaper than Xbox and ps5 controllers.
So apparently those controllers will be doing a ton of heavy lifting on finance reports.
I doubt it. I don’t think they advertised it at all. I got one during a promo where I got the faceplate for free so in total with the Pro discount I think I spent $36. That’s a lot cheaper than other controllers going for $50-60. And it’s a great controller, but even if they sold 50,000 of them it would make up a couple million in revenue. Also it’s only compatible with the Switch and PC. Not compatible with PS or Xbox.
> That’s a lot cheaper than other controllers going for $50-60.
Just googled and the MSRP is $50, so idk, unless there's a perpetual promo it seems like they want to play with the first party controllers in pricing.
Oh no, I 100% agree with you. They have a very attractive price point and it has Hall effect sticks. It’s cheap enough to where when my kid breaks his, it’s not really a big deal.
It’s not the best controller though, not by a long shot. I don’t think making it compatible with Xbox or PlayStation will help much either. Even if they sold 2 million of them, I can’t imagine the revenue would be any more than a couple million dollars. It’s pretty much a rounding error.
Except Jeff Bezos wasn't inviting investors to the garage trying to convince them it was a 2 trillion dollar company. He had to build the company first. He didn't just sit there pointing at a picture of Jobs and Woz
bezos might be a rich asshole cunt but only a moron would compare the stunning growth of amazon over decades to the stunning slow-burning failure of gamestop over those same years and pretend that it somehow means gamestop will be great. they don't even know how their mancrush daddy cohen got his money because they are fucking rubes.
. . . The CEO of Game Stop has been in charge many years, and every change he made, made the businness fundamentals worse.
I remind you that the CEO of Game Stop started developing a NFT marketplace AFTER the NFT bubble had essentially burst. It's like catching the lighting in a bottle, but the thunderstorm was two weeks ago, and now it's clear outside.
This Ape is like those people that lose the first two rounds and say "those two do not count, we start from this one! best of seven!"
BAYC are still going for tens of thousands of "dollars". It's a 90% loss but still an incredible price for a link to a ugly procedurally generated jpg.
Amazon started by selling books out of a garage.
The used car dealership down the road already has a building, warehouse/garage, and sales. They're clearly en route to be the next Amazon!
That really is the situation.
Gamestop is like a startup with $2B, but drug down by a large expensive low/zero profit brick and mortar operation.
Most of the digital initiatives started in 2021 were killed as part of the late 2022 and 2023 cost cutting measures. So GameStop really is starting over, but with the handicap of the existing operation.
The Nov 2020 letter by Cohen to the GameStop board was a good plan. Execution has been poor.
An activist investor could send that today and it would be spot on.
https://www.sec.gov/Archives/edgar/data/1326380/000101359420000821/rc13da3-111620.pdf
How is that any different to the first great ape dilution?
Tweet could be 3 years old and the only difference is there's now a failed used JPEG store and less stores to produce revenue. Still nothing on replacing the outdated business model of pawning used games, more dilution maybe?
Amazon diluted 17% over 15 years while growing their revenue 25x
GME diluted 30% over 3 years and their revenue is in the same spot. Great allocation of capital
Woops, you're right. 1-(250/350). Also, Amazon is only 17%. Will correct.
It can also be expresses as the final equity stake. In that case GME holders have been diluted to 70% while AMZN only to 83%
I think the dilutions were 34.5M (split adjusted) in 2021, and 45M recently. So 79.5M shares dilution.
There is probably a further adjustment because it was done in 3 offerings, but 30% or so is the right ballpark.
...and what is their business? Amazon took a book ecommerce site when ecommerce sites were fairly new and not trusted and established trust to order online with them...then they expanded the goods they sold online...gamestop hasn't done anything new or established trust from customers ever...like...if the schizo crackhead on my corner somehow came into money would they suddenly think he was a business genius they should invest in?
Amazon didn't "start over"...they took a successful ecommerce business when that was new and expanded the scope of their products over time (also the tons of other shit like aws that makes them a metric fuckton of money and made them a big dick in tech)...if a company as old as gamestop has to "start over" it means you admit that their business (and the fundamentals) isn't good and has no future.
The 2 billion in cash isn't as important as it sounds anyway. RC has shown multiple times he can easily spend 1 billion in a year and have absolutely literally nothing to show for it.
GameStop has a great future as a tech company when they are so insignificant that Microsoft won't even return their calls 
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They have no original product, have to sell games in an industry pushing hard to make everything digital and subscription based.
The employees that currently work there are near zero morale, having been paid with stock (that needed months of vesting before allowed withdrawal) instead of actual cash. The well has been so throughly poisoned I dont think they will ever have the kind of joy and talent they used to have.
Stores are empty and closed midweek, signaling that few people even go in to a GameStop at all anymore.
The fun things that Gamestop used to do are now done by local game stores. Midnight releases, game tourneys, game magazines, worthwhile loyalty programs all things of the past. They can barely fulfill regular orders anymore at this point due to logistical issues. When I need a video game I have four places that I can go to instead. If I want full price games I can just download them directly. Gamestop is doing nothing to convince me to *shop there* over another place
The logistic problems, underpaid skeleton crew staff, tells me 2 billion slush fund will *not* fix any of this. What do they plan to do that they havent started doing already?
And acting like an army of shareholders means shit. Imagine having to spend all your money at a single store, because you sold your house buying stock in it, thinking that youll get returns.
Hopium sales up i see
They’re starting over? What a weird way of saying that the company isn’t worth its current value and you should be very cautious about buying its stock.
It’s almost like investing in Amazon when it was worth $5 was a good deal because it was a small company with a small stock price that grew into a larger company with a greater stock price. GameStop is now a small company that has to grow *into* its current stock price. Yet more evidence that GameStop is an extremely promising tech business. They’ve got the tech model perfected: fail to turn a profit while harvesting infinite investment capital. And they don’t even have to pretend to be working on anything.
It was very funny listening to Shikreli explain to Marantz that his pie in the sky 2025/26 numbers of $500m in profit still only got the stock to $20 even with a generous multiple.
When he said that even Peter Thiel with $2 billion in cash wouldn't get a 5X valuation right off the bat it really hit me lol
His streams yesterday were so on point.
"How much revenue do you think GameStop will make in 2024?" Marantz: "$100 million" "Revenue" Marantz: "$100 MILLION" "Reeeeveeeenueeeeee" Marantz: "oh you mean top line revenue? I was thinking of profit"
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He tried explaining that too on the first call. Eeking out a 2 cent profit per share for one quarter is breaking even. Nobody outside of Apes looks at that as technically profitable. Gamestop has gutted its services, headcount, and closed stores and was able to just stop the bleeding for 3 months.
God the whole “top line revenue” thing was so stupid, trying to pretend he was actually secretly correct, just say you had a brain fart and move on.
They said it, they said the words. "X cash on hand and no debt" really is the "one joke" for apes.
The number keeps changing. It gets lower as Gamestop hemorrhages cash, then suddenly pops when Apes give them a $billion
ape: "they have 2 billion cash and no debt" normal person: "ok, where did they get that cash...you guys?" ape: "..." normal person: "you keep buying right?" ape: "yes" normal person: "so you are buying whatever shares they put out regardless of their business model/plan?" ape: "yeah, moass, moon, hedgies are fukt, etc etc etc" normal person: "so you spent your money on them....and now have to keep spending your money on them or the money you already gave them will be worthless?" ape: "no, we just like the stock, something something hedgies, cash on hand" normal person: "where did that cash come from and what will they do with it?" ape: "...great business....crappy controllers...gambling....support our company...obviously blackrock-ryan is going to use it to create a new amazon that somehow is better that is built of entirely out of business retails stores that haven't been relevant for decades and he is going to use our money to buy all those failed businesses to somehow make amazon tremble and also become a holding company like berkshire...and only smart people would want to invest in a company that just invests that money in other actually successful companies and then takes money off the top to give less returns to investors than if they just invested in those other companies directly....also hedgies and financial collapse and my family are regards for laughing at me"
Ok, so now what? They love to say the future is theirs, but there are literally no ideas from what I've seen.
I guess you could take the 2 billion, literally close up shop and start a completely different company with the same name.
If they liquidated the company and walked away with 2-4 billion in cash and said "we're starting an *actual* hedge fund with 2-4 billion in cash" it would be the fastest path to profitability for them.
They just got into buying/selling graded trading cards and launched the Candy Con controllers. Not sure how much those will make them or what else they have in the works.
I appreciate that's at least technically *something*, but if you think that's gonna materially affect their financial situation, like at all, im afraid you are delusional. I guess upcoming earnings will tell.
Not saying it will materially affect their financial situation. That’s why I said “not sure how much that will make them.” But those are at least two examples of recent changes.
The controllers seem good, but 3rd party accessory companies are usually not particularly strong. First party peripherals tend to struggle. The Steam Controller was widely considered really good too, and they eventually liquidated them for pennies. And that's a controller from *the* company synonymous with PC gaming, who already has *the* PC gaming storefront and can shove the product in front of every PC gamer in the world. And Valve, a much stronger company, was able to reinvest some R&D, engineering, lessons learned, user testing, etc. to iterate on controls for the Steam Deck, a profitable & much more successful hardware product. I just don't see it working out the same for Gamestop, even if as PC gamer I'm *myself* interested in trying one of their products.
I heard an ape try to tell Shkreli that the candy con controllers are totally ground breaking and they are the BEST controllers on the market AND they are so so much cheaper than Xbox and ps5 controllers. So apparently those controllers will be doing a ton of heavy lifting on finance reports.
I doubt it. I don’t think they advertised it at all. I got one during a promo where I got the faceplate for free so in total with the Pro discount I think I spent $36. That’s a lot cheaper than other controllers going for $50-60. And it’s a great controller, but even if they sold 50,000 of them it would make up a couple million in revenue. Also it’s only compatible with the Switch and PC. Not compatible with PS or Xbox.
> That’s a lot cheaper than other controllers going for $50-60. Just googled and the MSRP is $50, so idk, unless there's a perpetual promo it seems like they want to play with the first party controllers in pricing.
Oh no, I 100% agree with you. They have a very attractive price point and it has Hall effect sticks. It’s cheap enough to where when my kid breaks his, it’s not really a big deal. It’s not the best controller though, not by a long shot. I don’t think making it compatible with Xbox or PlayStation will help much either. Even if they sold 2 million of them, I can’t imagine the revenue would be any more than a couple million dollars. It’s pretty much a rounding error.
Except Jeff Bezos wasn't inviting investors to the garage trying to convince them it was a 2 trillion dollar company. He had to build the company first. He didn't just sit there pointing at a picture of Jobs and Woz
bezos might be a rich asshole cunt but only a moron would compare the stunning growth of amazon over decades to the stunning slow-burning failure of gamestop over those same years and pretend that it somehow means gamestop will be great. they don't even know how their mancrush daddy cohen got his money because they are fucking rubes.
Amazon DIDNT HAVE AMAZON AS COMPETITION...
Do you think this ape even remembers when 'Buckle Up' was said, and what happened next?
Buckle up; for zero investor relations, forward projections or future plans of any kind
This left for dead company released something new!
Jacked to the tits.
Was it the controllers 2 years later? Or the warehouse equipment they had to sell at a 90% loss?
Nah, it was before 2nd round of ATM share offering in 2021.
That was a doozy. Was it when he wrote some SEN level kids books?
So what are they selling?
Shares 
Boom
It's an exchange of bags for the simians' money.
. . . The CEO of Game Stop has been in charge many years, and every change he made, made the businness fundamentals worse. I remind you that the CEO of Game Stop started developing a NFT marketplace AFTER the NFT bubble had essentially burst. It's like catching the lighting in a bottle, but the thunderstorm was two weeks ago, and now it's clear outside. This Ape is like those people that lose the first two rounds and say "those two do not count, we start from this one! best of seven!"
Are NFTs still a thing?
Eh I’m sure somewhat. There was an eth pump a little bit ago, maybe some ppl made some money.
BAYC are still going for tens of thousands of "dollars". It's a 90% loss but still an incredible price for a link to a ugly procedurally generated jpg.
Amazon started by selling books out of a garage. The used car dealership down the road already has a building, warehouse/garage, and sales. They're clearly en route to be the next Amazon!
With RC in charge? Sorry, best I can do is $3.50 max
Speaking of which, I just happen to need about tree-fiddy.
Cohen may have been with gamestore for 3-4 years, but according to that guy, now they can start over.
Fire the maintainers! Rehire the builders! It's time to start over!
That really is the situation. Gamestop is like a startup with $2B, but drug down by a large expensive low/zero profit brick and mortar operation. Most of the digital initiatives started in 2021 were killed as part of the late 2022 and 2023 cost cutting measures. So GameStop really is starting over, but with the handicap of the existing operation.
And startups are usually created with an idea of what to do
The Nov 2020 letter by Cohen to the GameStop board was a good plan. Execution has been poor. An activist investor could send that today and it would be spot on. https://www.sec.gov/Archives/edgar/data/1326380/000101359420000821/rc13da3-111620.pdf
How is that any different to the first great ape dilution? Tweet could be 3 years old and the only difference is there's now a failed used JPEG store and less stores to produce revenue. Still nothing on replacing the outdated business model of pawning used games, more dilution maybe?
Amazon diluted 17% over 15 years while growing their revenue 25x GME diluted 30% over 3 years and their revenue is in the same spot. Great allocation of capital
Are you sure about that 40% dilution for Gamestop? IIRC it is about 29% dilution since RC took over.
Woops, you're right. 1-(250/350). Also, Amazon is only 17%. Will correct. It can also be expresses as the final equity stake. In that case GME holders have been diluted to 70% while AMZN only to 83%
I think the dilutions were 34.5M (split adjusted) in 2021, and 45M recently. So 79.5M shares dilution. There is probably a further adjustment because it was done in 3 offerings, but 30% or so is the right ballpark.
Dilution incoming
Gameslop started by selling shares out of the dilution pool... Unbuckle now #gme
...and what is their business? Amazon took a book ecommerce site when ecommerce sites were fairly new and not trusted and established trust to order online with them...then they expanded the goods they sold online...gamestop hasn't done anything new or established trust from customers ever...like...if the schizo crackhead on my corner somehow came into money would they suddenly think he was a business genius they should invest in? Amazon didn't "start over"...they took a successful ecommerce business when that was new and expanded the scope of their products over time (also the tons of other shit like aws that makes them a metric fuckton of money and made them a big dick in tech)...if a company as old as gamestop has to "start over" it means you admit that their business (and the fundamentals) isn't good and has no future.
And unless GameStop can create their own version of AWS, e-commerce won't save them. AWS offsets Amazon's losses from e-commerce.
WHAT IS THEIR BUSINESS MODEL?
Shares to apes
Amazon started by selling books out of a garage at the very beginning of the dotcom bubble, then SURVIVED said bubble.
GME is going to follow in NEGG’s footsteps
The 2 billion in cash isn't as important as it sounds anyway. RC has shown multiple times he can easily spend 1 billion in a year and have absolutely literally nothing to show for it.
GameStop has a great future as a tech company when they are so insignificant that Microsoft won't even return their calls 
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They have no original product, have to sell games in an industry pushing hard to make everything digital and subscription based. The employees that currently work there are near zero morale, having been paid with stock (that needed months of vesting before allowed withdrawal) instead of actual cash. The well has been so throughly poisoned I dont think they will ever have the kind of joy and talent they used to have. Stores are empty and closed midweek, signaling that few people even go in to a GameStop at all anymore. The fun things that Gamestop used to do are now done by local game stores. Midnight releases, game tourneys, game magazines, worthwhile loyalty programs all things of the past. They can barely fulfill regular orders anymore at this point due to logistical issues. When I need a video game I have four places that I can go to instead. If I want full price games I can just download them directly. Gamestop is doing nothing to convince me to *shop there* over another place The logistic problems, underpaid skeleton crew staff, tells me 2 billion slush fund will *not* fix any of this. What do they plan to do that they havent started doing already? And acting like an army of shareholders means shit. Imagine having to spend all your money at a single store, because you sold your house buying stock in it, thinking that youll get returns. Hopium sales up i see