Re:GameStop Investors Who Bet Big–and Lost Big
by asdff on Monday February 15, 2021 @02:57PM
(#26146551)
People buying physical games don't need gamestop to keep buying physical games. They can buy them at target or walmart when they are there grocery shopping, or ship them for free from amazon. People buying used games and systems also aren't generally going to turn to gamestop and their overpriced junk, like they would have 15 years ago, now that online marketplaces, both local and national, have matured. Consider used games with an active market, like Super Smash Brothers Melee which still commands $50 used, aren't even sold at gamestop anymore and haven't been for years. They don't have anything older than the previous generation system, and of that past generation they will probably not have great inventory of popular titles, so retro buyers aren't even going there to begin with. It's dead retail walking and they do nothing unique.
Re:GameStop Investors Who Bet Big–and Lost Big
by Wowfunhappy on Monday February 15, 2021 @02:58PM
(#26146559)
> People buying physical games don't need gamestop to keep buying physical games. They can buy them at target or walmart when they are there grocery shopping, or ship them for free from amazon.
Sure, but what has changed between now and five years ago?
Re:GameStop Investors Who Bet Big–and Lost Big
by asdff on Monday February 15, 2021 @02:59PM
(#26146577)
Offerup, letgo, swappa, venmo, cash app.
Re:GameStop Investors Who Bet Big–and Lost Big
by rhino369 on Monday February 15, 2021 @02:56PM
(#26146534)
It's twice its value in 2016 despite revenue falling significantly pre-covid and accumulating a lot of debt.
Reddit investors may have had a good investment case at 4 dollars (basically assuming it won't go bankrupt). But it could right-size and enjoy modest growth in online sales and still not be worth what it is now.
Re:GameStop Investors Who Bet Big–and Lost Big
by mupuff1234 on Monday February 15, 2021 @02:53PM
(#26146510)
I think the short case is pretty obvious - basically a re-run of blockbuster.
I do think they can adapt and survive as a business, but i doubt they have a future of growth or big profitability.
Re:GameStop Investors Who Bet Big–and Lost Big
by Wowfunhappy on Monday February 15, 2021 @02:55PM
(#26146527)
> i doubt they have a future of growth or big profitability.
Oh, I agree. But prior to the recent craze it seems as though many were treating them as a failed company. Gamestop isn't Blackberry, or JCPenny.
• The pandemic is temporary and retail stores will re-open.
• Gamestop isn't bankrupt and doesn't have mountains of debt.
• There will be people who still want to buy physical games—whether for their resale value, or as collectibles, or because downloading 100GB on a slow internet connection sucks.
• Gamestop should be able to leverage their brand to increase their online presence.
I don't understand why they were so heavily shorted before, and I do think the redditors had a good investment case (early-on, before things went nuts).
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† I have some money in index funds, and some in an account managed by a professional broker. But nothing I personally selected.