GME - GameStop: An Old-Fashioned Valuation Analysis

2024-06-07 14:36:30 ET

Summary

• I value stocks the traditional and common-sense way - based on their earnings prospects.
• GameStop's two decade earnings and revenue history show a steady decline of more than 10 years, due not to declining video games sales but of Gamestop's market share.
• The company's store-based retailing model continues to get badly beaten by all-digital competitors.
• Earnings and sales valuations put the stock's fair value at $3-4.

First, two confessions. First, I am old-fashioned. I have an excuse – I collect Social Security. I haven’t played a computer game since Pong. I am on no social media. I’ve watched TikTok for less than two hours. I even have a landline!...

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