GameStop, the American video game retailer, has surprisingly good business fundamentals.

[Scarlett]

As a toy collector and gaming enthusiast, I love the Canadian version. I get the best customer service in store and over the internet. They always bend over backwards for me, and I find the 15% off membership more than pays for itself.

Can't imagine pursuing either hobby if GameStop Canada went under.

 

[Book One]

I doubt many employees would agree. Last time I was in one around here the guy told me they are down to 1 employee working by themselves in the store.

 

[Diarrhea Day-Lewis]

There are certainly other places to buy & sell used games and systems, like Half Price Books for example. I can't think of any that have quite the same reach as GameStop, but the concept of a general used media shop inside a used bookstore seems like it will have long legs, even if game media becomes increasingly niche.

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If they closed, especially poor areas, would suddenly have no used game options or would have to drive longer distances to get there, especially places with library deserts. If they still play console games they'd just go digital I imagine due to the transportation challenge. And none of those retailers have the infrastructure to support a bigger used game market. HFB is some what but that's not their main sales demo so I doubt they'd invest in it.

GS needs huge changes and they treat staff like subhumans but I hope we one day get a better used game store to take their place. Won't happen of course

 

[Corps-Peau-Rate]

1 day i was curious about why MacDonald have like 35 billions debts ( i was comparing bigs companies debts to Gamestop ).

And i found out, that some big company like these take debts to make company buybacks lol. So it inflate the stock and directors/investors can keep selling without the price dropping.

McDonald's (MCD) Stock: Capital Structure Analysis

Learn about the importance of capital structure and what equity and debt capitalization measures can tell us about the performance of McDonald's.

www.investopedia.com

Gamestop is the opposite lol, 40 millions debts and they even force directors to buy stock themself to have "skin in the game".

 

[AgeEighty]

To be clear, I'm not saying that the fundamentals are bad. I've got no idea. My only point there is that one of the arguments in favor of good fundamentals (GameStop doesn't have debt) is really just due to random meme happenstance, so it's not great evidence either way.

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Right, but my point is the cash they've got due to being a meme stock doesn't have to be a repeatable source of income in order to make it a sound fundamental for them. It's money they have now that they are able to invest wisely if they can find a way to do so, and they have the ability to turn it into a more solid and recurring revenue stream.

 

[LurkerAroundTheForum]

They suck as a corp but if they vanished we would lose used games market. Publishers and other corporations are salivating at this idea, as an excuse to move 100% digital and hope consumers don't care

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I think used games are mainly sold on the Internet, like eBay or Amazon.

I don't need need some plastic garbage lying around and taking space just to resell it. If I think a digital game is to expensive I buy a other game or other media.

 

[Grifter]

Has OP had ape activity in the past? Was it time to strike and stem the effects of This is Financial Advice?

 

[moncho13]

Sorry, but no. Any articles or interviews trying to prop up a failing CEO and his buddies is pure conjecture. The lack of any real leaders (lol) is astounding. They've cut so many vital jobs at the Support Center (corporate) they implemented SAP to "upgrade" their antiquated systems and failed to give it enough time to actually transfer over important info and accessibility (the team responsible for this was let go before the full transition btw) their payment system has failed to pay vendors to agreed upon terms consistently and have actually moved to paying everything up front in one lump sum (which vendors didn't agree to) and all this WITHOUT getting into the specifics of failing regional and district managers doing awful jobs supporting the real back bone of this supposed "profitability". They cut jobs, hours, positions and even sold the space where they currently run operations. "Zero debt" is a crutch they want to flail around to show the stock bros that they should continue to hold and buy each low! Cmon Era, this isn't Kotaku.

 

[Skyscourge]

Has OP had ape activity in the past? Was it time to strike and stem the effects of This is Financial Advice?

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Let's stop accusing OP of being a shill. Gamestop is not some unknown entity, they have been a key part of video game distribution in NA and has existed in the public eye long before the short squeeze of 2021. They were not even necessarily wrong, just missed some other important factors about Gamestop's fundamentals.

 

[B-Dubs]

Guys, how about we NOT accuse the OP of shilling a scam based on literally nothing? We're a GAMING community and physical media and how it's sold is totally a valid discussion topic. Trying to shut it down because you're reading too much into stuff isn't on.