Is Gamestop the next Amazon?:
Is Gamestop the next Amazon?
Yes.
Gamestop, the company I’ve been writing about for 2 years that’s going to change the world forever, just reported its first positive earnings in years.
They reported their Q4 and fiscal year results for 2022 and boy were they amazing.
48.2M positive net income this quarter, $1.4B in cash, no long term debt, and >300M in positive cash flow for the quarter!
Incredible.
Just an incredible turnaround.
Especially in this market with macro problems, war, currency fluctuations, and bank failures.
You now have a company producing cash, is profitable, has no long term debt and has millions of people behind it in a turbulent market.
Hats off to Ryan Cohen and the Gamestop team.
You guys are heroes.
Out here inspiring millions, not with your words but with your actions.
For years, people thought I was insane.
Told some friends about Gamestop years ago and they were hesitant.
Believed in me but not the company.
Not anymore.
Now they actually understand the story.
This company can’t die.
It’s now profitable.
The short thesis is DEAD.
Repeat after me, DEAD!!
Hedge funds are terrified.
Wall Street is terrified.
The mainstream media is terrified.
This was the thesis for two years - Gamestop is a dying brick-and-mortar company with too much debt and no ability to make money.
Now that’s all gone.
The other factor why I believe in this company relates incentives of the management team.
When Gamestop changed the board and management the last few years, they gave options at prices in the $200 pre-split - $50 today.
During 2021/2022 when executives, board members and insiders across companies like Facebook, Amazon, Tesla, Teladoc, Peloton and many other tech companies were selling their stock at peak prices, no one sold anything at Gamestop.
When Elon, Bezos and Zuckerberg were selling their stock at peak prices, Gamestop’s management and board were not selling.
They believed in the vision.
They believed in the future direction.
Even though the stock has dropped over 50% since then, no one has sold.
That tells you everything you need to know as a shareholder.
If your management team and board are aligned from an incentive perspective, you know they’re on your side.
They even said in the Q4 results ‘Established an equity incentive program for store leaders and tenured associates to increase their compensation and strengthen alignment of interests with fellow stockholders.’
Means those working for the company who do well are rewarded and fully aligned with the shareholders of the company.
‘Incentives are superpowers’ - that’s from Charlie Munger. Never forget that.
Ryan Cohen, you beautiful human being.
You’ve shown millions of people what it’s like to work.
What it’s like to turn around a company.
Now Wall Street is shitting its pants trying to get out of swaps tied to Gamestop’s short thesis.
Credit Suisse failed in part because of Bill Hwang and Archegos, which failed due to poor risk management on swaps.
It was reported in the follow-up report of the whole debacle that Hwang could’ve been short Gamestop, meaning Credit Suisse was holding the bag.
They lost 5.5B out of that bet and now UBS has to deal with their shit.
It’s like in the Big Short - total return and equity swaps are like dog shit wrapped in cat shit.
Market makers like Citadel have pushed this stock down for far too long but now the short thesis is dead.
It’s like someone walked into a room with a fire that slowly has kept growing for the past 2 years.
Millions of people directly registering their shares.
Millions reading and learning everything on Superstonk.
Millions of people tired of Wall Street’s criminal activities and corruption we can see in broad daylight.
That fire has slowly grown bigger and bigger.
Now Wall Street is trapped in the fire room of its own creation with the flame about to explode.
Gamestop is going to change the world.
I’ve said it before and will say it again.
Buffet talks about 20 pitches in your life you have to hit on good investments.
I’ve written before that I’d take 10 of those fat pitches and push them all on Gamestop.
I started crying today when I found out the news.
For 2 years people thought I was crazy.
Today the company I bet on is now profitable with the short thesis totally dead.
Shorts are done because they bet against Ryan Cohen, the Internet and the next Amazon.
This Gamestop turnaround is just beginning.
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