GameStop Corp. (GME)

GME reflects high-risk, healthy risk in the market as inflation comes down and growth is decent. We are churning in equities. Steady. It's healthy. But later this year she expects cooling in growth and the economy, so what will be the street's threshold of pain.

It's pure speculation. It appears that Keith Gill bought a large position and revealed it (sort of), which triggered a huge rally today. Who would show their hand like this, unless he plans to cash in? The company is tired. It feels like a plaything.

Keep in mind GME is a stock we have deliberately chosen not to follow too closely, as it would use up pretty much all of our time with the craziness it exudes. The financing puts it into decent financial shape, with about $1.8B net cash now. But, cash flow was negative $204M in the last 12 months. The issue comes with dilution, and even with a 6-fold increase in EPS expected from 2025 to 2026 (January year end) that still only amounts now to 6c per share, at best. So the P/E, as they say, is way up there. It still has a 21% short interest. IF GME makes an acquisition we might be more interested in it. But as it is, its revenue is about 40% lower than it was in 2018, even with higher inflationary forces. It is very hard to succeed, long term, with such declining revenue. It certainly is not a stock we would be comfortable owning, unless for pure amusement purposes ala a lottery ticket. The financing will give it flexibility, but this in itself does not guarantee a 'turn'. 
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A crazy stock. The franchise is not bad, but this is hugely played by speculators and shorts. Hugely volatile. They raised money which improves the balance sheet. Can't predict this.