GameStop Shares Surge as Ryan Cohen Increases Investment

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GAMESTOP ($NYSE:GME): GameStop Corp is a global video game, consumer electronics, and collectibles retailer. Over the last few weeks, the company’s stock has surged after Ryan Cohen, the co-founder of the e-commerce giant Chewy, increased his investment in GameStop. This move has led to a significant rise in share prices, with investors expecting Cohen to use his expertise to help the company transition to an online business model. While the increase in investment by Cohen appears to have been a savvy move on his part, it has had a positive impact on the company’s share prices.

This surge has been driven by investor confidence in Cohen’s ability to lead the company in a new direction and take advantage of the growing e-commerce market. The increased investment by Ryan Cohen has been met with great enthusiasm from GameStop shareholders. With the increased investment and Cohen’s expertise in e-commerce, investors are hoping that GameStop will be able to transition into an online business model and take advantage of new opportunities.

Price History

On Tuesday, GAMESTOP CORP saw its stock surge to the highest in nearly two weeks, as investor Ryan Cohen increased his investment in the company. The stock opened at $26.2 and closed at $27.0, recording a gain of 10.9% from its prior closing price of 24.3. This marks the biggest daily gain since March 10th, signaling a strong performance for the company. The increase in investment comes as Cohen, the former chief executive of Chewy Inc., has been buying shares of the video game retailer since December.

With the recent surge in stock prices, GameStop’s overall valuation has gone up considerably. This surge of confidence in the company has been seen as a sign of optimism for the future of GameStop, and may be driven by Cohen’s increased commitment to the company’s success. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Gamestop Corp. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Gamestop Corp. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Gamestop Corp. More…

Key Ratios Snapshot

Some of the financial key ratios for Gamestop Corp are shown below. More…

Analysis

At GoodWhale, we have conducted an analysis of GAMESTOP CORP‘s financials. Our Star Chart shows that GAMESTOP CORP has a high health score of 7/10, indicating that it is capable of paying off debt and funding future operations. In terms of the financial metrics, GAMESTOP CORP is strong in asset, medium in profitability and weak in dividend and growth. We classify GAMESTOP CORP as an ‘elephant’, a type of company that is rich in assets after deducting liabilities. Given these findings, we believe that GAMESTOP CORP will be of interest to institutional investors who are looking for a stable asset, as well as value investors looking for stocks with potential for price appreciation. More…

Peers

The company offers a variety of gaming devices and games for purchase or rent from its retail locations and online store. GameStop Corp competes with Amazon.com Inc, ContextLogic Inc, and RH in the retail sale of video games and gaming devices.

– Amazon.com Inc ($NASDAQ:AMZN)

Amazon.com, Inc. is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Four companies in the U.S. information technology industry, along with Google, Apple, and Microsoft. Amazon is known for its disruptive innovation and commitment to customer service.

Its market cap is 1.05T as of 2022 and its ROE is 6.29%. Amazon has been one of the most successful companies in terms of market cap and ROE. It is a technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon is known for its disruptive innovation and commitment to customer service.

– ContextLogic Inc ($NASDAQ:WISH)

Logic Inc is a publicly traded company with a market capitalization of $483.87 million as of 2022. The company has a return on equity of -24.36%. Logic Inc is engaged in the business of providing software and services to businesses and government organizations. The company’s products and services include enterprise resource planning, customer relationship management, business intelligence, and analytics.

– RH ($NYSE:RH)

Reebok International Ltd. is a footwear and apparel company that operates in the global market. The company designs, manufactures, and markets sportswear, footwear, and equipment under the Reebok, CCM, and Rockport brands. As of 2022, Reebok had a market capitalization of 6.06 billion dollars and a return on equity of 35.86%. The company’s products are sold in more than 170 countries and territories through a network of company-owned stores, independent retailers, and distributors.

Summary

GameStop Corp. is a U.S. based video game retailer that has recently been making headlines due to an influx of retail investors entering the markets. This has led to a sudden surge in the company’s stock price, which was further propelled by Ryan Cohen, the founder of Chewy, investing heavily into the company. The investing thesis behind GameStop is that the company still has plenty of potential for growth as video gaming continues to become more popular.

Additionally, many investors believe that the new executive team, led by Cohen, can help revamp the company’s operations and bring in more profits. As of now, it is unclear what the longer-term prospects are for GameStop and its stock price, but given the current momentum, many investors are optimistic about the company’s future.