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The original was posted on /r/Superstonk by /u/MickeyKae on 2025-06-17 15:55:45+00:00.
(Reposted to avoid brigading concerns)
TITLE:Ā GameStop ā Separating Common Sense from Common Sentiment
What to do with a company like GameStop? In a world where Reddit forums and mainstream financial media still clash on ideas of speculative value, there seems to be an odd unity that has sprung up regarding collective sentiment around Ryan Cohenās venture ā a collectively emphaticĀ negativeĀ sentiment.
Iāll start my own assessment by laying out four separate takes that summarize the more earnest positives and sobering negatives that I've seen discussed.
The conservative bull case for GameStop:
A fiscally responsible board of directors has taken advantage of a windfall of cash generated through public offerings to build one of the most robust corporate treasuries you can possibly find (relative to company size). Additionally, they have raised money to purchase digital currency as a hedge against cash devaluation. Despite lackluster performance from the business operations (retail gaming), the company is uniquely positioned to weather uncertainty from a pure fiscal standpoint.
The conservative bear case against GameStop:
Despite a windfall of raised cash, this company appears stalled in its effort to transform into an enterprise that can uphold the promise of its share price. Years of speculation from online forums about a āmassive turnaroundā appears to have fizzled into mediocrity which, at best, may amount to some modest returns in the future but will likely falter over time as online enthusiasm wanes.
The speculative bull case for GameStop:
Cohenās leadership and savvy for raising capital has put GameStop in the driverās seat to surf a maelstrom of potential opportunities on the horizon. The company is now hedged against dollar devaluation with a substantive purchase of Bitcoin, and the latest Q1 earnings has confirmed that the operations-side of the business is no longer a liability to the bottom line, especially with the advent of Switch 2 sales yet to print. With operations fully buoyant, the board of directors is now clear to pursue offensive strategies with the cash hoard it has amassed through public offerings and Treasury interest to execute on the implicit promise of company transformation. With a fervent investor base, conditioned for years to expect the cash to only be used as a shield, one has to think market enthusiasm will reignite once GameStop pursues adding swords to its inventory menu.
The speculative bear case for GameStop:
The GameStop board appears hapless in the face of dwindling investor enthusiasm and a business model that can only exist with the help of dilutive cash injections. The ferocity in which the stock moved in the past is matched only be the timid-ness by which GameStopās business moves today. With nothing but store closures, silent earnings calls, late-to-the-party Bitcoin hype, and Treasury interest on the docket, itās easy to see why most risk-averse investors have no appetite to discuss this stock (let alone purchase it).
I find it extremely important to have all of these takes at the forefront of any analysis of GameStop ā because they all contain valid points. Depending on how you look at GameStop, especially in the era of Cohen as CEO, thereās a thoroughly mixed bag to parse through.
That said, I do think weāve reached a point where marking GameStop as a āscamā or a āmemeā doesnāt hold up to scrutiny. I do think it should stay off the radar of investors with no appetite for volatility, but evidence is mounting in favor of a bullish epoch for the company ā one that may have already started.
When you strip away all the hype and the conspiratorial assertions about the atmosphereĀ aroundĀ GameStop, it seems that a very straightforward game plan is in motion within the boardroom.
That being ā Cohen is raising money to do something very expensive.
The most bullish indicator (for me) comes from transposing the evolution of fundraising rounds that Cohen has overseen as CEO of GameStop with the fundraising he pursued in the early days of chew chew. In so few words, GameStop is finding it easier and easier to raise money without tremendous ācostā (re: dilution). Much of this I lay at the boardās feet thanks to their success in removing the specter of the operations side of the business. Now that the storefronts are right-sized and profitable, thereās no more concern of the bottom dropping out when in meetings with institutional investors. The latest senior note offering demonstrates tremendous appetite to hold GameStop debt from folks with far more visibility to the financial world than the average bear (pun intended).
The jury is still out on whether GameStop will transform into something that will uphold its elevated price, but I think itās a foregone conclusion thatĀ somethingĀ and, moreover,Ā something expensiveĀ is cooking behind the scenes at GameStop. If nothing else, I think the average investor should at least take a stab at reevaluating GameStop. Maybe theyāll come to the same negative conclusion, but at least theyāll have given it its due concern.
END OF POST
So I wrote this out of a desire to put forward a real business case for bullishness - one that balances the speculative and the conservative as best as possible without offending folks that don't have patience for diving into the "big picture" of the GameStop saga. In my view, this is about as close to the mark as you will find anywhere regarding this topic.
AND YET, I'm just floored by how quickly the mods vaporized this. I was pronounced a shill and thusly banned from the sub altogether.
This was kind of a wake-up call for me. When I imagine the future, even one where GameStop becomes a transformed, lucrative enterprise, I get the feeling discussion will never be accepted. There's just too much resentment out there. I'd like to throw up my hands and wave it all off, but I truly value floating ideas about this saga in other subs because, frankly, this one doesn't always produce the most incisive discussions.
Just feeling depleted and deleted on a Tuesday over here.