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GameStop (GME) Stock Surges Amidst New Board, Short Squeeze [Read Threadmarks]

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faint

faint

Member
Oct 27, 2017
1,150
With all the doom and gloom surrounding GameStop here over the last year or so, I figured I'd share this information.

Key Takeaways:
  • Ryan Cohen, owner of Chewy.com, had a substantial take in the company and was recently elected to the Board of Directors
  • Massive short squeeze imminent (happening now)
  • Stock was up 90% today
GameStop Surges Most Ever in Short Squeeze After Cohen Move

A rush of short covering and day trading fueled a record stock surge for GameStop Corp. just days after the addition of activist investor and Chewy Inc. co-founder Ryan Cohen to the video-game retailer's board.

The Grapevine, Texas-based company spiked a record 94% Wednesday as retail investors flocked to the struggling company. Traders betting on Cohen's plans to transform the chain in the image of his highly successful Chewy helped fuel the now three-day rally with the stock shaking off years of underperformance.
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GameStop shares have climbed as much as 118% in the three days since news of Cohen's addition to the board and reached the highest price since November 2015. Short interest in GameStop remains near recent highs, with 138% of shares available for trading currently sold short, data compiled by S3 Partners shows.

Cohen's spot on the board, along with two other former Chewy colleagues, was well-received by Wall Street analysts, with Telsey's Joseph Feldman in a Tuesday note saying the trio will "make GameStop a more digitally focused retailer."
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PLEASE READ THIS BEFORE COMMENTING

www.resetera.com

GameStop (GME) Stock Surges Amidst New Board, Short Squeeze [Read Threadmarks] News

Man this is beyond words awesome. Congrats haha
www.resetera.com www.resetera.com
 
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Biggersmaller

Biggersmaller

Banned
Oct 27, 2017
4,966
Minneapolis
"Make GameStop a more digitally focused retailer."

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YuriLowell

YuriLowell

Member
Oct 26, 2017
3,541
I mean their transformation into only selling memorabilia first and video games second is almost complete.
The Pop section is bigger than anything else in both of my local stores.
 

Deleted member 39374

Banned
Feb 1, 2018
5,083
It's a pump and dump scheme organized by the /r/wallstreetbets discord, please disregard LOL

It's going back down to $16 where it belongs next month
 
Curler

Curler

Member
Oct 26, 2017
15,587
They are currently the 'best' (which isn't saying much right now, due to scalpers) place to actually pre-order Pokemon cards for actual, not above MSRP prices, so this is some good news there.
 
OP
OP
faint

faint

Member
Oct 27, 2017
1,150
Polymerization said:
It's a pump and dump scheme organized by the /r/wallstreetbets discord, please disregard LOL

It's going back down to $16 where it belongs next month
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The stock was 300% shorted when looking at the overall shares in the market. WSB has a part in this, but you're naive to think they caused this alone. The GME stop was always a short squeeze + hoping Cohen would have the pull to get leadership to shift to digital / ecommerce / new revenue streams. All of it happened.

This will "dump" for sure, but I think there's growth potential for GME with new leadership. I would argue it drops to $25 and then the company can begin their potential shift. If that works up, we can evaluate it from there. It's still a crazy day and quite funny to see it unfold.
 
CookieMonster

CookieMonster

Member
Oct 30, 2017
155
This is going to fail miserably. They have one of the worst websites out there, cant ship things properly (as in store employees are doing all the leg work), they cant get a solid contract with a shipping partner, are pushing walk in customers to purchase online (at that point they just leave), and have nonexistent customer service.
 

Deleted member 39374

Banned
Feb 1, 2018
5,083
Lkr said:
this is exactly what i'm thinking. the quote given even says it's been fueled by day traders lol
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It's definitely an organized thing by WSB and other trading communities, it's been a running meme since the fall.

faint said:
The GME stop was always a short squeeze + hoping Cohen would have the pull to get leadership to shift to digital / ecommerce / new revenue streams. All of it happened.
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The squeeze is something these communities have been engineering and egging on for months, and they were also the ones that would communicate en masse to get the word out to Cohen et al. to get involved.

This is like direct democracy/direct action but for stonks, it's pretty fascinating tbh. There will be books written about it
 

Epitomage

Banned
Sep 25, 2020
300
This is fascinating. They managed a quick pivot but I have my reservations - as a chewy and digital software shopper. The idea will be to shift heavily into digital but IIRC they've made those claims before, while allocating resources to their "swag" and other physical good with dwindling margins. Is it going to be more of the same or are there serious plans to change how they operate going forward?

And I know this might come across as facetious but why do they even want brick and mortar anymore, if this is the intention? I don't see chewy stores. They wouldn't float alongside the established chains as well, and it'd defeat their direct to door method. Why isn't gamestop trying something similar full stop, not just half assing with their out of date online services?
 
onpoint

onpoint

Neon Deity Games
Verified
Oct 26, 2017
14,908
716
Could they possibly go the Walmart route and offer $10 new releases while also pivoting to an easy and efficient order by mail delivery service for physical games, new and used?
 
Curler

Curler

Member
Oct 26, 2017
15,587
I still wish they went the retro route, and allowed for old stuff to get traded in and STAY in at the stores, not just immediately sent to warehouses. Not everyone eBays, and not everyone have mom n pops nearby.
 
NinjaScooter

NinjaScooter

Member
Oct 25, 2017
54,064
onpoint said:
Could they possibly go the Walmart route and offer $10 new releases while also pivoting to an easy and efficient order by mail delivery service for physical games, new and used?
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walmart can afford to give $10 off new releases because they are Walmart. A business that relies solely on selling video games can't afford to eat that much into the profits of the only thing they sell.
 
SapientWolf

SapientWolf

Member
Nov 6, 2017
6,565
Epitomage said:
This is fascinating. They managed a quick pivot but I have my reservations - as a chewy and digital software shopper. The idea will be to shift heavily into digital but IIRC they've made those claims before, while allocating resources to their "swag" and other physical good with dwindling margins. Is it going to be more of the same or are there serious plans to change how they operate going forward?

And I know this might come across as facetious but why do they even want brick and mortar anymore, if this is the intention? I don't see chewy stores. They wouldn't float alongside the established chains as well, and it'd defeat their direct to door method. Why isn't gamestop trying something similar full stop, not just half assing with their out of date online services?
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They're on borrowed time with game sales but they might be able to keep their stores profitable by changing their business model slowly over time. At some point they'll be selling more food, clothing and accessories than games.
 
Swiggins

Swiggins

was promised a tag
Member
Apr 10, 2018
11,443
This has wallstreetbets written all over it.

Those absolute madlads.
 
Fukuzatsu

Fukuzatsu

Member
Oct 25, 2017
1,321
This idea of transitioning to a more digital-focused marketplace is an absolute non-starter as long as there's no guarantee of what condition you'll receive a pre-owned game in. At a minimum, they'll need to (at a minimum) confirm if it's in the original case, whether or not it includes inserts/manuals, is it a revision version like "Greatest Hits", and a general ranking of its overall quality. Without that I never feel comfortable buying anything from them online.
 
crimsonECHIDNA

crimsonECHIDNA

▲ Legend ▲
Member
Oct 25, 2017
17,302
Florida
Biggersmaller said:
"Make GameStop a more digitally focused retailer."

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Yeah it's like, I don't even know how that would even work. What's the purpose of going to a physical store to buy a digital code when you can just cut the middle man out and do it from home?

NinjaScooter said:
walmart can afford to give $10 off new releases because they are Walmart. A business that relies solely on selling video games can't afford to eat that much into the profits of the only thing they sell.
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Even Best Buy bailed on theirs, likely because the mass majority of people taking advantage of it weren't actually buying other products from the store.
 
Nitori

Nitori

Member
Oct 29, 2017
372
Maybe this Chewy guy can make Gamestop's online store usable. Having more items available to buy online (instead of searching by Zip Code and praying there's a store nearby), and having more affordable shipping options is a good start.
 

Mudo

Member
Oct 25, 2017
6,114
Tennessee
"More Digitally Focused"
What does that even mean for gaming?
I need to buy a physical console.
I buy my games directly on my console.
So why would I ever want or need to inject a 3rd party into this equation?
Maybe I'm missing something here
 
Krakatoa

Krakatoa

Prophet of Regret
Member
Oct 29, 2017
3,091
lol I bought in when it was on the down a year or so ago as a gamble. I'm very happy right now
 
BlueManifest

BlueManifest

One Winged Slayer
Member
Oct 25, 2017
15,301
Told ya a few months ago when the stock went from 4 to 18 that the company is safe now, people wouldn't be willing to pay 30$ a share if they thought the company was going under in 1-2 years
 
MrBenchmark

MrBenchmark

Member
Dec 8, 2017
2,033
Just got an email today our local store the only other one is 20 minutes driving distance about 8 minutes from me is closing they are selling everything. I bought the DS display case they have It will hold all my cartridge games beautifully for display.
 
OP
OP
faint

faint

Member
Oct 27, 2017
1,150
MrBenchmark said:
Just got an email today our local store the only other one is 20 minutes driving distance about 8 minutes from me is closing they are selling everything. I bought the DS display case they have It will hold all my cartridge games beautifully for display.
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They announced a few months ago that they'd be closing hundreds of stores. It's unfortunate for the folks working out of that location, but GameStop still has a ton of stores when compared to other retailers. In large cities, you'll sometimes have 3 in a 10 mile radius.
 
MrBenchmark

MrBenchmark

Member
Dec 8, 2017
2,033
faint said:
They announced a few months ago that they'd be closing hundreds of stores. It's unfortunate for the folks working out of that location, but GameStop still has a ton of stores when compared to other retailers. In large cities, you'll sometimes have 3 in a 10 mile radius.
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That's how it was where I used to live years ago they had 2 across the street from each side ther then one in the mall 5 minutes from that.

Guys that work at the one closed by my house thought they'd be the last one to get closed considering there location I'm guessing their sales weren't close to the other two store in the 2 towns over.
 
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