| The very idea that someone would argue that GME at $1000 a share which is almost FIFTY TIMES what it was valued a few months ago is a reasonable price for this stock is just absolutely bonkers. 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? |