Quote:
Originally Posted by Noneya
These words don't mean what you think they mean 
They haven't had a profitable quarter since 2017. There is nothing to indicate that they ever will. The valuation implied by $50 (or the current $100+) price is completely detached from reality.
What you really meant to say was "I may pick up some shares because I like gambling". |
The price is not detached from reality. Gamestop can be a great long term buy. Leadership matters. If Ryan Cohen was able to make Chewy.com into $35B company that sells pet supplies, there's no reason he can't do that with Gamestop as a gaming online retailer. That valuation would be $500 a share for GME. We've seen big turn arounds for companies before, just look at what happened to Apple when Steve Jobs returned. Anyone with a time machine would have invested in them.
At the end of the day prices are determined by supply and demand, and there is only 70M shares of supply, and there is a whole lot of demand. Gamestop is getting millions of dollars of free global media coverage. It was the most purchased stock in 95% of countries in Europe during Jan and Feb. Everything about short squeezes and gamma squeezes are fun to discuss but I don't count on it, but Ryan Cohen leading the company to a brighter future is something that I will bet on.