GME - GameStop: Progressing Great But The Meme Volatility Will Remain Forever (Rating Upgrade)
2024-05-14 03:37:39 ET
Summary
- GameStop has seen an 80% rally in the last 5 days after a tweet from investor Keith Gill, but the volatility makes it a risky investment.
- GME has made progress in cost-cutting and achieved GAAP profitability, but its expenses still outweigh its gross profit.
- Further store closures and aggressive cost-cutting measures are needed for the company to become efficient and profitable.
Introduction
GameStop ( GME ) has seen an 80% rally in the last 5 days, with a massive jump after a tweet from its prolific investor Keith Gill, or Roaring Kitty as he is known on the internet. I wanted to look at the company's performance throughout 2023 and see if it is closer to a turnaround. Aggressive cost-cutting efforts are paying off, and it managed to turn a profit, although not because of the company's actual operations, however, the company looks much more attractive now. I would like to see further aggressive cost-cutting measures, so eventually, the company can say it has achieved profitability through its operations....
GameStop: Progressing Great, But The Meme Volatility Will Remain Forever (Rating Upgrade)