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by callmemclovin
1945 days ago
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> literally many thousands of people on WSB were insisting it would go to $1000. Yes, and nobody knows what would've happened if there was no dubious buying restriction from brokers. With the strong momentum of the stock price on that day, 1000$ was not unrealistic. > Imagine 15 years ago pumping up Blockbuster stock to 20x what it was worth. The famous VW short squeeze happened 13 years ago and made VW the biggest company in the world for a short period of time. |
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I'm talking about what the company is ACTUALLY worth, not how many suckers are willing to roll the dice on a dubious pump and dump scheme.
Imagine if someone told you Blockbuster was worth FIFTY TIMES what it was trading for on the market in 2007. Gamestop's long term prospects are about as optimistic as BB was at that time.
Their revenue comes almost exclusively from retail sales of video games, IN MALLS.
You can say that "they're going digital!" and ok, fine that might stave off bankruptcy for a few more years maybe even allow them to remain in business for a while, but selling games online is...pretty competitive lol.
And why would someone prefer to buy a digital game from GME when there is PSN, XBL, Steam, Battle.net etc. etc. ?
Or if we believe physical copies of games are going to be around past a few more years, how are they going to compete against Amazon, WM, Target, Newegg etc which have somewhere between a 5-10 year head start?