How Disconnected Are GameStop's Fundamentals From The Share Price?


Video length: 00:13:39

Gamestop (GME) finds itself in a unique position. Since 2018, Short sellers are concerned the stock is overvalued. On the other hand, supporters of Gamestop’s meteoric stock rise in 2021 are telling short sellers precisely where to put their opinions.

To better understand Gamestop’s business, Cardify analyzed GameStop’s revenue, average order value, transaction frequency, and average monthly spend per customer.

Do the fundamentals match the share price? Spoiler: No.

KEY TAKEAWAYS:

  • Gamestop’s 2020 revenue was 15.7% higher than 2019 revenue, but followed roughly the same pattern and seasonality.
  • Average order value grew in 2020, staying higher than 2019’s average order value for most of the year and trending upward yet again at the end of 2020.
  • Despite lockdowns affecting Gamestop’s in-person locations, data shows that monthly purchase frequency was up slightly year over year.
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.