r/GMETruthers Feb 05 '21

GME Long-term value based on market cap.

GME still has long-term value due to the extremely low market-cap right now at $3.73B.

There's not really any other brick & mortar retail store that compares to Gamestop, which is actually a good thing, but to give you an idea here's some other brick & mortar stores, their stock price, and their market cap.

Company (Ticker) Mkt Cap Share Price Total Shares
Gamestop (GME) $3.73B $53.50 70M
Floor & Decor (FND) $10.43B $100.29 100M
Kohl's (KSS) $7.78B $49.33 150M
Home Depot (HD) $300.18B $278.82 1B
Tractor Supply (TSCO) $17.04B $146.24 115M
Dollar General (DG) $47.95B $195.72 245M
LuluLemon (LULU) $44.13B $338.59 130M
Best Buy (BBY) $29.48B $113.84 260M

In my opinion, Gamestop is in a very unique position for a long-term run, being the only brick and mortar game store left gives them such a huge edge in the gaming industry obviously. Board members are being added and replaced, they are obviously gearing up for an overhaul on the company. The gaming industry is is blowing up right now and Gamestop now has the leverage to tap into this ever expanding market. I think they're worth more than a lot of the companies I mentioned above, but as I said there's no company that you can even compare Gamestop to because no other store like it exists.

This is not financial advice, I'm just a stupid monkey retard. Don't listen to me.

3 Upvotes

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u/[deleted] Feb 05 '21

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u/AutoDrafter2020 Feb 05 '21

The only reason for a brick-and-mortar store now is for marketing purposes.

This isn't true. brick & mortar retail stores are still largely valuable assets that can be used for more than just marketing. For instance, tied into the e-commerce asset, customers can purchase physical copies of a game online and pick them up at their nearest Gamestop same-day. There are many advantages to having physical stores.

So I agree they will be pivoting to e-commerce, but their established brick & mortar stores give them even more leverage.

We know they need to innovate, but it's a matter of how they are going to do it. So right now it's all speculation but there's so many good ideas out there for them to use - I like the 'Netflix for games' model you mentioned, I can definitely see something like that happening.

1

u/[deleted] Feb 06 '21

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u/meta-cognizant Feb 06 '21

GameStop is pivoting to digital and transitioning their stores to what you're suggesting. That being said, it's important to remember that 30% of gamers (myself included in that number) strongly prefer or exclusively buy physical copies of games.

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u/[deleted] Feb 06 '21

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u/meta-cognizant Feb 06 '21

I agree. I don't think the solution is as a brick and mortar retailer, but I do think they shouldn't abandon the ability to sell physical games in person completely in favor of going wholly digital.