GameStop (NYSE: GME) Isn’t Fun Anymore

The greatest gift GameStop (NYSE: GME) stock gave us was a legendary short squeeze two years ago. GameStop (NYSE: GME) Stock Isn’t Worth Entertaining as an Investment [Wealth Daily] Jason Simpkins / Sep 10, 2024 GameStop (NYSE: GME) Isn’t Fun Anymore The greatest gift GameStop (NYSE: GME) stock gave us was a [legendary short squeeze]( two years ago. Since then, it’s enjoyed a few nice blips whenever the “meme stock” contingent tries to make 2021 happen again — but that’s about it. Overall, the trend has been decidedly negative, which is why so many traders and brokerages carpet-bombed the stock with short trades to begin with. To wit… GameStop stock surged 9% last Friday when its chief champion, investing influencer "Roaring Kitty,” made a cryptic social media post on X. See that sentence? I absolutely hate myself for writing it. Honestly, I hate to sound like a crabby old man, but do people even take investing seriously anymore? This is real money we’re talking about. Ah, well. I guess if we’re going to make investing a game, it’s fitting we do it with the video game retailer that brings nothing but nostalgia to the table. Seriously, no one really buys physical copies of video games anymore, so GameStop’s latest gambit is to open a series of “GameStop Retro” locations to sell games and consoles most people stopped playing years ago. [GameStop Retro] At best, this will be good for a temporary boost in sales. Aside from that, though, it’s literally the exact opposite of “forward-looking.” But since we’re looking back, we might as well revisit GameStop’s last earnings report in light of the fact that it’s set to deliver second-quarter results after the market closes today. [Billionaire Gold Investor Just Found His Next Gold Mine]( He’s famous for finding 10-baggers in the gold market.He even scored $1 billion on a single trade.Now, he’s discovered what could be the next big gold play. It trades for just a few dollars a share.[Get the complete story before it disappears.]( GameStop Earnings GameStop badly missed earnings in the first three months of 2024. The company reported a 29% drop in both revenue and earnings on its way to a $32.3 million net loss ($0.11 per share). Worse, management announced the sale of another 75 million shares on top of the 45 million share sale it announced in May. With that, GameStop stock tanked 47%, tumbling from $47 to $25 per share. Dilution is never a welcome development for stockholders, but the upside is that the money raised can be channeled back into the business to improve its outlook. But if retro gaming stores are all GameStop has up its sleeve, that’s pretty underwhelming. It’s certainly not a solution to a decade-long trend of falling revenue. [GameStop Earnings Revenue Declines] Microsoft Goes Nuclear Microsoft is building its own nuclear power plants to power its AI ambitions. And for investors, this is a massive opportunity. Because one little-known company will deliver the nuclear fuel for these reactors. And it's set to rake in BILLIONS as a result. Most people have no idea this company even exists. That’s why shares are still cheap. But this story could reach the mainstream as early as September 18. [Get the full story here.]( For the second quarter, analysts expect to see GameStop’s revenue fall another 23% year over year, to $895.7 million, while the adjusted loss is expected to come in at $0.09 per share. If accurate, that would make for the ninth EPS loss in the company’s last 10 quarters. Could GameStop surprise to the upside? Sure. Overall video game sales totaled $57.2 billion in 2023, up from $56.6 billion in 2022, according to data released by the Entertainment Software Association and Circana. Sales are expected to trend higher this year, as well. Helldivers II has been a hot title all year and EA Sports' College Football 25 reportedly helped drive a 10% increase in video game spending in July. It’s definitely possible that GameStop got a boost from the overall trend. But the problem was never that video games aren’t popular — we know they are. The problem is that they’re increasingly coming by way of digital download. This makes GameStop something of a tar pit gurgling with the fossils of a bygone era. So if the kids want to play with it, let them. But for me, GameStop stock is hardly worth entertaining. Fight on, [Jason Simpkins Signature] Jason Simpkins Simpkins is the founder and editor of [Secret Stock Files](, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more... In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor's [page](. Be sure to visit our Angel Investment Research channel on YouTube and [tune into Jason's podcasts.]( Want to hear more from Jason? [Sign up to receive emails directly from him]( ranging from market commentaries to opportunities that he has his eye on. [follow basic]([@OCSimpkins on Twitter]( [Feedback? get in touch](mailto:/newsletter@wealthdaily.com?subject=Wealth%20Daily%20feedback) [Read this email online]( [Manage Newsletters]( [Share on Twitter]( You signed up for our newsletter with the email {EMAIL}. You can manage your subscription and get our privacy policy [here](. This email is from Angel Publishing, 3 East Read Street, Baltimore, MD 21202 © Wealth Daily.