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posted by Fnord666 on Sunday March 14 2021, @02:49PM   Printer-friendly [Skip to comment(s)]
from the who-will-be-holding-shares-when-the-game-stops? dept.

GameStop shares rise, fall and rise again in roller-coaster day of trading:

GameStop shares spiked Wednesday, reaching $348 apiece, only to come crashing down to $172 each early in the afternoon, causing multiple halts in trading of the stock due to volatility. Stocks then moved back up and ended the day at $265[*], a 7% increase for the day.

The past two days were a buying frenzy for the video game retailer's stock since Monday, when it was $136. That surge coincided with a lift to the entire stock market after Saturday's passage of the COVID relief bill in the Senate, as well as with an announcement that the video game retailer is developing a new e-commerce strategy, with Chewy.com founder Ryan Cohen heading that effort.

Cohen, who made a large investment in GameStop last year, will lead a committee seeking to transform GameStop a "technology business," the company said in a press release Monday.

GameStop shares skyrocketed from less than $20 in early January to more than $480 at the end of January thanks to a massive push by traders on the Reddit forum r/WallStreetBets. The stock price has dropped dramatically since then.

Price quote on Yahoo!

Also at BBC

Previously:
The Complete Moron's Guide to GameStop's Stock Roller Coaster
Console Options Without Disc Drives Could be GameStop's Final Death Knell
Web Site thinkgeek.com Moving in with Parent Company GameStop
GameStop Heading Towards Possible Doom
GameStop Posts Massive Loss as Pre-Owned Game Sales Plummet
GameStop's Future in Question after Failing to Secure Buyout


Original Submission

Related Stories

GameStop's Future in Question after Failing to Secure Buyout 22 comments

A long-standing brick-and-mortar game shop could be the latest victim of the digital age - and it could leave gamers out in the cold. We've seen the pattern before: the demise of a beloved retail chain due to the rise of online shopping, and the decline of in-store retail sales. Now it's happening to the country's biggest retail gaming chain, GameStop.

foxnews.com/tech/gamestops-future-in-question-after-failing-to-secure-buyout

The full statement from the company is available at GameStop Concludes Process to Pursue Sale of Company.


Original Submission

GameStop Posts Massive Loss as Pre-Owned Game Sales Plummet 69 comments

GameStop Posts Massive Loss as Pre-Owned Game Sales Plummet:

One of the world's biggest video game retailers just announced its worst annual performance in decades, raising renewed questions about the health of the physical video game market as downloadable games continue their ascent. Net sales for GameStop were down 3 percent for the 52-week period ending February 2, a slide that helped flip last year's modest $34.7 million profit to a sizable $673 million operating loss. On top of that, the company expects sales to decline another 5 to 10 percent in the next fiscal year.

GameStop's massive loss is the largest ever reported by the company, and only the third annual loss since it grew out of the corporate remains of FuncoLand in 2000. GameStop last posted a loss in 2012, when it lost nearly $270 million thanks in part to weak holiday sales near the end of that era's console generation.

But more than the amount, the reason behind the new loss could be cause for long-term concern at the retailer's thousands of worldwide storefronts. While hardware sales were roughly flat and new software sales fell about 4 percent year over year, pre-owned software sales cratered nearly 12 percent for the year, continuing a years-long slide.

GameStop has always relied on the high margins of buying low and selling high on used game discs to buoy an otherwise low-margin business. But the rise of downloadable games, which can't be resold, has taken the wind out of those sails to a large extent. "We continue to see declines in pre-owned software, reflecting the decline in sales of new physical games and the increasing demand for digitally offered products," GameStop COO & CFO Robert Lloyd said in an earnings call.

I'm curious how many Soylentils still prefer to buy their games on physical media and who prefers a digital distribution. What's your motivation? Also, what if anything, can Game Stop do so as to continue as a going concern?


Original Submission

GameStop Heading Towards Possible Doom 21 comments

GameStop's future is grim as its stock price crumbles

GameStop is falling, and many analysts and industry observers are skeptical it can recover. The retailer reported earnings yesterday for Q1 of its fiscal 2020 yesterday where it missed its revenue target. Now, the company's stock price has crumbled to $5, which is the lowest this has been since 2013.

For Q1, GameStop generated $1.55 billion in revenues. That was significantly short of Wall Street's expected $1.64 billion. The company did cut costs to improve its earnings per share, but that's not something it can do every quarter. And GameStop's outlook is dire in part because its core business — selling hardware and used games — is starting to dry up.

Used game revenues dropped 20% year-over-year last quarter. And hardware revenues dropped 35 percent in the same comparison. And while the company has diversified into collectibles with its ThinkGeek brand, that growth wasn't enough to offset other declines.

[...] "Pre-owned revenues declined 20% year-on-year in Q1 2019, driven by continued traffic headwinds from a tougher year-on-year software release slate," Baird analyst Colin Sebastian wrote in a note to investors. "While new hardware sales declined 35% year-on-year, as Switch growth was more than offset by declines in Xbox One and PlayStation 4 sales. Reflecting a console cycle now long in the tooth."

Services like Google Stadia won't help GameStop's situation.

See also: GameStop Slumps 40% to 16-Year Low as Gaming Passes It By
The video game sales slump is killing GameStop
GameStop Stock Is Plummeting. The Bonds Are Doing Fine.
GameStop Has Become the Poster Child for Retail Woes and Tech Disruption

Previously: GameStop's Future in Question after Failing to Secure Buyout
GameStop Posts Massive Loss as Pre-Owned Game Sales Plummet


Original Submission

Web Site thinkgeek.com Moving in with Parent Company GameStop 23 comments

I remember when ThinkGeek was in its hey day and often chortled on seeing some of the items on offer. It looks like there are some major changes under way. Their web site is moving under the web site of parent company GameStop. Physical store locations for ThinkGeek will remain open. Selected items will remain available in GameStop stores. Orders from ThinkGeek on or after June 13th, 2019 are final sales -- no returns.

As part of this transformation, there is currently a 50% off everything sale at https://www.thinkgeek.com/

I must confess I had not visited their site in years. What has your experience with them been like?


Original Submission

Console Options Without Disc Drives Could be GameStop’s Final Death Knell 24 comments

Console options without disc drives could be GameStop’s final death knell:

The latest quarterly earnings report from GameStop doesn't show much sign of a turnaround for the long-troubled game retailer. Sales were down 26.7 percent year over year for the April through June quarter. Even accounting for permanent store closures and COVID-related reduced operating hours, so-called comparable "same-store" sales were still down 12.7 percent year over year. GameStop's already depressed stock is down nearly 8 percent on the news, as of this writing.

GameStop still publicly sees an "opportunity to capitalize" on the upcoming release of new Sony and Microsoft consoles, which could help turn its business around in the short term. But there's some reason to believe the coming generation of consoles could actually make GameStop's long-term prospects worse, thanks to console options that get rid of disc drives entirely.

[...] In an earnings call, GameStop CEO George Sherman acknowledged that "there has been growth in digitally downloaded games" and said GameStop is "not debating the growth of digital gaming." But he also tried to put a positive spin on the fate of GameStop's physical game sales going into the next generation of consoles.

"First, new consoles have a disc drive," Sherman said. "So for the next seven years, the consoles will play both the physical and digital software that we sell."

That's only partially true, though. Both the Xbox Series S and the PlayStation 5 Digital Edition actually won't have a disc drive. And while GameStop does sell some digital software, the bulk of its business comes from the sale of new physical games and high-margin pre-owned games.


Original Submission

The Complete Moron’s Guide to GameStop’s Stock Roller Coaster 193 comments

The Complete Moron’s Guide to GameStop’s Stock Roller Coaster

The Complete Moron’s Guide to GameStop’s Stock Roller Coaster:

Last week, an epic short squeeze had driven GameStop stock up to $40 a share, a roughly 1,500 percent increase from its low point nine months ago. Little did anyone know at the time that this would only be the beginning of the story.

As I write this, GameStop's stock price is hovering around $350, up another 775 percent or so since I wrote about this situation eight days ago. By the time you read this, that number may be horribly outdated, as the stock continues to bounce up and down with extreme volatility hour by hour (it dipped down as low as $61 and peaked as high as $159 on Friday).

The current stock price now gives the company a market cap of about $26 billion.

On the surface, that means the market currently thinks GameStop is worth more than twice as much now (during a potentially existential threat to brick and mortar game sales) as it was during the height of the Wii boom in late 2007, when console game downloads were barely a thing.

Also at: Business Insider.

Melvin Capital, Hedge Fund Targeted by Reddit Board, Closes out of GameStop Short Position

Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position:

GameStop Stock Falls Sharply Amid 5M-Share Sales Plan, SEC Investigation 13 comments

GameStop stock falls sharply amid 5M-share sales plan, SEC investigation:

GameStop's quarterly earnings report, released last night, contained relatively good news for the embattled retailer, including a smaller-than-expected operating loss and the company's first year-over-year increase in quarterly revenues in years. But GameStop's heavily inflated stock price is down significantly in morning trading on news that the company plans to sell more shares and the announcement that it is cooperating with a Securities and Exchange Commission investigation into the "meme stock" phenomenon.

In what CEO George Sherman called a "strong start to the year," GameStop's net sales were up over 25 percent to $1.3 billion in the fiscal quarter ending on April 30. That's despite "a roughly 12 percent reduction in the global store fleet due to our strategic de-densification efforts and the continued store closures in Europe during the quarter due to the COVID-19 pandemic."

Previously:
GameStop (The Stock) and GameStop (The Retailer) Continue to be Worlds Apart
GameStop Shares Rise, Fall and Rise Again in Roller-Coaster Day of Trading
The Complete Moron's Guide to GameStop's Stock Roller Coaster


Original Submission

GameStop (The Stock) and GameStop (The Retailer) Continue to be Worlds Apart 24 comments

GameStop (the stock) and GameStop (the retailer) continue to be worlds apart:

The last time GameStop announced its quarterly earnings, in early December, the stock market valued the video game retailer at about $1 billion. Following a worse-than-expected earnings report released Tuesday night, the company now has a market cap of just under $10 billion as of Wednesday morning.

Sure, that's down roughly 18 percent from Tuesday's closing price, and off roughly 44 percent from a January peak that saw the stock offering become a poster child for the retail investor-driven "meme stock" phenomenon. Still there's not much in this week's report to suggest that GameStop as a company is worth ten times as much as it was just three months ago, much less the higher valuations it briefly enjoyed in the interim.

[...] Overall, GameStop's latest earnings report shows a company still struggling to turn itself around. For the full fiscal year, the company lost $215 million on net, improving on a net loss of just over $470 million the year prior. Net sales for the year were down over 21 percent, to $5.09 billion, a decline GameStop blamed in part on its "de-densification efforts" (i.e. closing nearly 700 stores). Even taking that move into account, though, sales for comparable stores were down 9.5 percent for the year.

Previously:
GameStop Shares Rise, Fall and Rise Again in Roller-Coaster Day of Trading
The Complete Moron's Guide to GameStop's Stock Roller Coaster
Console Options Without Disc Drives Could be GameStop's Final Death Knell
GameStop Heading Towards Possible Doom
GameStop Posts Massive Loss as Pre-Owned Game Sales Plummet


Original Submission

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  • (Score: 4, Interesting) by Rich on Sunday March 14 2021, @02:56PM (18 children)

    by Rich (945) on Sunday March 14 2021, @02:56PM (#1124018) Journal

    I have to ask myself in what way GameStop shares would differ from Bitcoin or the US dollar, if enough people kept believing in its worth...

    • (Score: 2, Interesting) by khallow on Sunday March 14 2021, @03:08PM (7 children)

      by khallow (3766) Subscriber Badge on Sunday March 14 2021, @03:08PM (#1124020) Journal
      What would the point of the exercise be? The answer is that it would then depend on the power of whoever controls the ability to issue new shares (which might not be shareholders in this case, I don't know the power structure of the business). For it is feasible to issue far more shares than there is belief in the value of those shares.
      • (Score: 2, Troll) by Rich on Sunday March 14 2021, @03:39PM (6 children)

        by Rich (945) on Sunday March 14 2021, @03:39PM (#1124036) Journal

        So it would not be different to what central banks do? As opposed to Bitcoin, where the issuing is limited by available computing power. (Or a hypothetical eco-currency where the issuing is controlled by available eco-energy futures). The share controllers would probably milk the golden cow for what it's worth, but attempt to not slaughter it.

        • (Score: 0) by Anonymous Coward on Sunday March 14 2021, @04:02PM

          by Anonymous Coward on Sunday March 14 2021, @04:02PM (#1124049)

          >> (Or a hypothetical eco-currency where the issuing is controlled by available eco-energy futures).

          Stop giving St Greta ideas.

        • (Score: 1, Insightful) by Anonymous Coward on Sunday March 14 2021, @05:01PM

          by Anonymous Coward on Sunday March 14 2021, @05:01PM (#1124086)

          Bitcoin is already energy credits as seen in star trek. The value is determined by the energy devoted to securing the network.

          If less energy is available then the value drops, thus decreasing consumption. If more becomes available the value of the currency rises and people spend more on goods and services. This is perfectly in tune with nature.

        • (Score: 2) by leon_the_cat on Sunday March 14 2021, @09:29PM (3 children)

          by leon_the_cat (10052) on Sunday March 14 2021, @09:29PM (#1124164) Journal

          Bitcoin is limited to 21 million.

          • (Score: 0) by Anonymous Coward on Sunday March 14 2021, @11:56PM (2 children)

            by Anonymous Coward on Sunday March 14 2021, @11:56PM (#1124200)

            Bitcoin is limited to 21 million.

            For now. When that "limit" starts to be reached, are all those miners who have all that massive investment in hardware with which to mine, simply going to shrug their shoulders and say, "Well, that's it, we've mined them all." Or are they likely to force an update to the limit in the code and a quick recompile?

            Bitcoin is software. Software can be changed. Given enough people wanting more money, it will be changed.

            • (Score: 3, Insightful) by leon_the_cat on Monday March 15 2021, @12:18AM (1 child)

              by leon_the_cat (10052) on Monday March 15 2021, @12:18AM (#1124210) Journal

              Firstly I point it out because it was a philosophical choice not some arbitrary code choice. Secondly it not as easy to do as you seem to think you would have to break the current network of nodes to do so which could be chaotic or even terminal for bitcoin.

              • (Score: 0) by Anonymous Coward on Monday March 15 2021, @09:28AM

                by Anonymous Coward on Monday March 15 2021, @09:28AM (#1124357)

                No, changing the limit wouldn't be that easy. But they've forked it and modified things before, so changing the limit can't be considered impossible. With the miners being a group with a large influence over bitcoin, and knowing that as a group they'll have a strong incentive to change the limit once the current limit is approached, it's not a huge leap to think it more likely than not that the limit will be changed.

                I don't think it would be terminal for bitcoin, though, now that people have since invented NFTs which are crazier than bitcoin could ever hope to be.

    • (Score: 0, Interesting) by Anonymous Coward on Sunday March 14 2021, @04:57PM (3 children)

      by Anonymous Coward on Sunday March 14 2021, @04:57PM (#1124084)

      Bit COIN is a fraudulant never existed so-called digital currency except for a few sample coins years ago.

      There are no coins, only COIN.

      I cry on the right shoulder of g-d for anyone who ever had this COIN.

      • (Score: 0) by Anonymous Coward on Sunday March 14 2021, @06:14PM (2 children)

        by Anonymous Coward on Sunday March 14 2021, @06:14PM (#1124114)

        Hey, take it east, mods. Someone triggered by pointing out facts about bit COIN?

        • (Score: 0) by Anonymous Coward on Sunday March 14 2021, @09:08PM

          by Anonymous Coward on Sunday March 14 2021, @09:08PM (#1124160)

          Hey, take it Yeast, mods. Someone triggered by pointing out facts about bit COIN?

          You made a typo. FTFY.

        • (Score: 1) by khallow on Monday March 15 2021, @01:57PM

          by khallow (3766) Subscriber Badge on Monday March 15 2021, @01:57PM (#1124412) Journal
          I imagine they're more likely to be triggered by people making stupid statements. That it happens to be about Bitcoin is by your choice.
    • (Score: 4, Insightful) by leon_the_cat on Sunday March 14 2021, @09:43PM (5 children)

      by leon_the_cat (10052) on Sunday March 14 2021, @09:43PM (#1124169) Journal

      "Value is thus nothing inherent in goods, no property of them, nor an independent thing existing by itself. It is a judgment economizing men make about the importance of the goods at their disposal for the maintenance of their lives and well‐​being. Hence value does not exist outside the consciousness of men." Carl Menger

      • (Score: 2, Troll) by c0lo on Sunday March 14 2021, @10:22PM (4 children)

        by c0lo (156) Subscriber Badge on Sunday March 14 2021, @10:22PM (#1124173) Journal

        Fallacy detected. Equating value with money.

        --
        https://www.youtube.com/watch?v=aoFiw2jMy-0
        • (Score: 2, Touché) by khallow on Monday March 15 2021, @01:58PM (3 children)

          by khallow (3766) Subscriber Badge on Monday March 15 2021, @01:58PM (#1124413) Journal

          Fallacy detected. Equating value with money.

          I notice the complete absence of the word, "money" in the grandparent post.

          • (Score: 2) by c0lo on Monday March 15 2021, @02:16PM (2 children)

            by c0lo (156) Subscriber Badge on Monday March 15 2021, @02:16PM (#1124424) Journal

            Not explicit, granted.

            It is a judgment economizing men

            Provide a list of other type of values an "economizing men" judges.

            --
            https://www.youtube.com/watch?v=aoFiw2jMy-0
            • (Score: 1) by khallow on Monday March 15 2021, @02:32PM

              by khallow (3766) Subscriber Badge on Monday March 15 2021, @02:32PM (#1124433) Journal

              Not explicit, granted.

              It is a judgment economizing men

              Provide a list of other type of values an "economizing men" judges.

              You are an economizing man, for example. So any reason you make a choice with economic impact is a value even if it doesn't have any monetary value by your perception.

            • (Score: 1) by khallow on Monday March 15 2021, @04:25PM

              by khallow (3766) Subscriber Badge on Monday March 15 2021, @04:25PM (#1124474) Journal
              Let's also consider some examples. For example, religion is a classic driver of non-monetary economic decisions. Some behaviors and choices have very little economic impact - for example, short prayers at certain times of the day or before meals. Others do, such as a pilgrimage to a distant location or building a place of worship. It doesn't matter if these things are paid for with money or not. Some resources are limited and the economizing man makes the choices as to how best express their religious beliefs given those limitations.

              A particularly blatant economic example is the sacrifice. It's not considered a sacrifice, if it's not of value to the person making the sacrifice. Modern examples include most plastic and paper recycling in the US (which is notorious for that stuff ending up in a landfill instead).

              Another example is scientific research. Basic or "blue sky" research is often used as a classic example of how scientific research supposedly can't be valued in human terms. Like throwing a probe at Mars once a decade at tremendous cost in resources and human effort because it'll have tremendous value to someone in 300 years. But when I modestly suggest someone throw enormous resources and effort at me to do science, the economic considerations creep in. Like maybe putting all your eggs in one basket and betting on a rando on the internets might not be as good an idea as investing in millions of scientists with a relatively decent track record? Who knew?
  • (Score: 4, Interesting) by Anonymous Coward on Sunday March 14 2021, @03:28PM (2 children)

    by Anonymous Coward on Sunday March 14 2021, @03:28PM (#1124031)

    There are still a ton of short sold shares. The short squeeze hasn't happened yet.

    • (Score: 0) by Anonymous Coward on Sunday March 14 2021, @03:47PM

      by Anonymous Coward on Sunday March 14 2021, @03:47PM (#1124044)

      Diamond hands, my brothers.

    • (Score: 3, Interesting) by istartedi on Sunday March 14 2021, @06:39PM

      by istartedi (123) on Sunday March 14 2021, @06:39PM (#1124132) Journal

      It depends on where you're getting your data. Most short interest data is stale because it's not posted frequently enough. S3 has access to more timely data. The entities involved can be tight-fisted with data, because... well... they own the data so why not charge for it? It's one of the many ways that small investors can be disadvantaged, because the cost of data feeds would be a big percentage of a small acount vs. being negligible for a large account. S3 has been freely publishing daily short interest for GME and a few other stocks lately, but they are under no obligation to do so.

  • (Score: 1, Insightful) by Anonymous Coward on Sunday March 14 2021, @04:09PM (1 child)

    by Anonymous Coward on Sunday March 14 2021, @04:09PM (#1124058)

    Probably by Microsoft. They already have a deal for selling gaming consoles and games with them.

    Be a good way to push Surface computers to existing customers.

    • (Score: 2) by Freeman on Monday March 15 2021, @03:11PM

      by Freeman (732) on Monday March 15 2021, @03:11PM (#1124444) Journal

      The EEE of Microsoft's business plan don't apply here, as they aren't directly competing with Microsoft.

      --
      Forced Microsoft Account for Windows Login → Switch to Linux.
  • (Score: 2, Interesting) by Anonymous Coward on Sunday March 14 2021, @05:19PM

    by Anonymous Coward on Sunday March 14 2021, @05:19PM (#1124087)

    Lot of brains throwing cycles at the wall. But some are sticking.

    Would be remiss to not leave these here:

    https://old.reddit.com/r/wallstreetbets/comments/m3zh49/gme_dd_friday_opex_312_post_mortem_warning_gamma/ [reddit.com]
    https://wherearetheshares.com/ [wherearetheshares.com]

    For those of you in infosec: there's some fascinating soft power moves in r/wallstreetbets/ where all kinds of current psycraft is on display. Way more per-capita paid posters than here on SN. Interesting what the 'spread' of quality of craft is there too; once real users and deeper shills started being very good about busting zombie accounts, those tapered off, but there's still a ton of junk flooding the field, some midlevel psycraft that's more insidious FUD instilling, and some high level false information / bought mod accts / tier-1 badposters.

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