GameStop Stock - Earnings Explained

Added: 2026-06-03

[00:00:00]All right, guys. You guys got to drive with me for a little bit because I'm headed back to the mountain. I know some of you guys thought I'd be live today. I am going to be live, just not right now.

[00:00:09]I'm in no rush. The stock isn't going anywhere. The news isn't going anywhere.

[00:00:13]A lot of you guys got the AK. You guys read it. Some of you guys already know how to dissect it all. You don't have to wait for me to come do it. Um, the Discord is so on top of things. The Discord's right on the money. And, um, I'm going to elaborate, obviously. I'm going to tell you how I feel about it, tell you what's going on. The one thing I'm going to talk about is no that no one talks about is a coincidence of the timing. So, let me run you back only because if you know this stock inside out, you should know these things. In uh June of 2024, it was June 2 years ago, GameStop was on a tear. they're on a massive tear coming off of Roaring Kitty that whole time frame and uh you know him coming back and whatever it may be.

[00:00:57]So GameStop announced the earnings report a week early and comboed with that announcement right after they did a share offering and they raised um like or they sold off like 75 million shares or something like that. So massive amounts of of liquidity coming to the company, equity coming to the sheet and the markets did what they do, you know, but that was happening then two years ago. So is this a precursor to an offering? Because we're trying to make a deadline, right? That's our biggest thing. Do we have a buyer that wants to come in and buy these shares or buy this stock or buy this company? Um throwing more cash at it. I mean, we're just so ca cash rich, you know, if you read the filing that they posted. And I'll give you some of these these numbers. Some people are saying the numbers aren't all here or the information. Listen, the bulk of it here. The only number that really matters at the end of it all is how many shares do you own? That's all that really matters. Um, I had a buddy of mine tell me he almost bought more this morning than he wish he would have.

[00:02:03]I said it it doesn't work like that for me. Um, now everything below $2,000 a share, everything below $200 a share, everything below $50 a share is a discount. This is a company that is proving that their recipe for success is is just that. So, think about it on on a scalable terms like everyone looks at it and says, "Look at GameStop. Look what GameStop just did. They just did $389 million of profit." Listen, GameStop did enough profit in a quarter. They make what you make in a year, they did it in a day.

[00:02:41]Like, that's how glorious this day is.

[00:02:43]It's the greatest day in the history of that company so far. But we're going to keep breaking records. This puts us on a trailing 12 of north of honestly, it's going to put you to 750 million, $800 million. I haven't gone and done the math. I haven't touched nothing, guys. I saw the press release. Actually, what I did was I saw the price go crazy. Like I got an alert, price went crazy in the after hours and then Jay called me and Jay said, "What's going on?" I said, "Hold on, let me go find out." I went straight to the Discord and there it was. You know, Ryan Cohen tweeted out the earnings. It's massive. But the algorithms and the computers and the way it works, you know, they hit 23 and a half and they shut it down. Internalize volume, you know, starve it. They want to starve off this machine that is GameStop. And that's okay if you don't think people are bullish on $800 million for the year. They're going to come out way higher than that, guys. Like the number you see is so much higher because from here on out, oh, just wait till I start doing the math when I get back.

[00:03:45]There's there's things where there was hidden math. You know, I came out and I said they're going to make 700 plus million for the quarter. I I didn't see much more only because I said I don't know about power packs. I was just talking about existing revenue. And so to watch them go from 35% gross profit margin to over 40% that means they are hoarding cash on power packs and collectibles. Like there has to be some some measurable metric for year-over-year growth that Wall Street has to give you credit for. And they're not doing it right now. You know, G, let's just call it what it is.

[00:04:24]GameStop announced a 14% growth year-over-year, guys. That might as well be a 200% growth. Cuz not only is it with the idea that they closed down 700 and something stores just here in the US, they closed all of Canada, 300 French, and then 34 New Zealand, whatever it ends up being.

[00:04:47]But the number has shrunk significantly from what they used to own versus what they own today. and to have a growth in in revenue. There's like there's nothing like that. To shrink down your footprint 30 to 40% and then grow revenue 14 that's on a total number in the sectors alone like in the actual categories themselves massive growth in collectibles and and we knew where we were headed but I mean it's it's to the point of no return.

[00:05:17]So and that's per quarter by the way.

[00:05:19]That's that's a great thing.

[00:05:22]And so let's think about it in a whole different terms. You know, I don't have the numbers in front of me, but I was reading them and it said free cash flow, $400 million.

[00:05:32]$400 million of free cash flow. You got to do something with that cash. And so they're they are sitting on 9.7 billion with a commitment of 1 billion towards eBay is what it ch is what it was saying. They have the Bitcoin sitting there. Then they have cash on top of that and then they go ahead and earmark $2 billion for share buybacks.

[00:05:55]So they have literally weaponized themselves to fight back. The best part about GameStop that I've seen is they announced it early to announce the share buyback that that um that variable that that a um that catalyst.

[00:06:15]Well, here's here's the best part.

[00:06:18]what I've seen from GameStop over all the years, GameStop actually does it.

[00:06:23]They don't just do stuff to do it. Like, uh, Ryan never approved the $100 million that they had sitting there earmarked for share buybacks. He had, um, when they got the company, they already had announced 300 million. They they did 200 million of their own in 2021, 2020, that time frame. So, they bought back the float to to buy back up the share price.

[00:06:46]The last time they did that, they deployed two, this is what GameStop did.

[00:06:49]They deployed $200 million and the stock went from $2 a share all the way to 500.

[00:06:57]I know. Now, we're sitting here, we're saying, what could you do with $2 billion, not 200 million? And what you could do is you could literally move markets. They're willing to buy back 20% of the given market cap today to shrink the float essentially depending on what you buy it at. Let's just say 80 million shares, 100 million shares. That would increase everyone's ownership and that would that would have a significant impact on the price because I want you guys to think of it like this.

[00:07:29]When Ryan Cohen buys shares, we know when he's buying because the stock moves. the stock might move like $3 to $5 and he deploys 10 to 20 million. I've seen it. You put you deploy 10 to 20 million into this econ into this stock in this security and you're out there in the open market or you're doing it, you know, a deal with your own broker, doesn't matter. The stock moves 3 to five bucks off of 10 to 20 million. What do you think it's going to move off of$2 billion?

[00:07:59]Like has anyone really done this math?

[00:08:02]Now, we've we've also put in there the fact that we're going to buy back these shares. The shares are $2 billion and or earmarked $2 billion on them. And they're 20 bucks a piece right now, not 22. I'll borrow I'll I'll I'll roll up the change on you. It's fine. But remember that we borrowed the money that we're buying back these shares with. We borrowed it at 0% interest. So, it's been earning us it's been earning us money right now. And we we borrowed at $30 a piece, $29.85 a share. So, when you're borrowing at that rate at 2985 and you're buying back the shares at 22 or at 20 flat, like it was 20ome today, it wouldn't matter. You're you're you're earmaring ballparking around 8 to9 8 to n bucks a share, seven bucks a share on the arbitrage itself.

[00:08:57]you're your own bond arbitrage. And if that were the case for GameStop to really start buying shares at the bottom down here, that means they would be netting around $7 to $8 a share in addition to in addition to earnings per share increasing and the float shrinking and your percentage of ownership increasing. So GameStop could use the money borrowed $2 billion to buy back and net $700 to a billion. 700 million to a billion dollars in profit just based off of using the 2 billion they gave you. So it's a net win for GameStop and and the price goes up. So that's what we're looking at on that end. The next thing we're looking at is GameStop now has the ability to defend itself uh against market manipulation with a $2 billion buyback. That just means that GameStop's willing to invest their own capital into the one security they feel is undervalued, which is GameStop, by the way. So, it being undervalued, I just give you this example. For them to make $400 million this quarter, I'll ballpark the I know it's 390, 389, but 400 million. They make 400 million this quarter. They make 400 million next quarter, next quarter, whatever it may be. You're looking at a company that's making 1.6 about from anywhere from 1 to$1.5 billion a year. And I'm just being fair because for them to still net out $80 million in interest, even though their money is locked up in derivatives and they have so many moving parts and interest rates are fluctuating, they're still making 80. Think about it. Next quarter, they're still going to make 80 on top of the 389.

[00:10:41]So that puts them at 4 470 for the year. Then you make another 80.

[00:10:47]Was it? And I'm not even adding operations in there. I'm just saying interest and what they just marked out this year right now at 389. So make that 400, make the interest in earnings be 100, 100, 100. Even if they fell flat on their face, they're sitting at $700 million. So anywhere from 700 million, the the low end to the high end, which would be double that, 1.4 million billion.

[00:11:12]And and here's the best part. When you look at percentage of increase on earnings, they went from earning $44 million for the quarter to 389. They're they're up 7 to8 times their money.

[00:11:28]That's 700 to 800% increase on earnings.

[00:11:34]And no one's going to go ahead and tell you that this should be something you buy. Wall Street as it stands right now they're sitting on 800 to 700 to $800 million worth of earnings. If I ballpark that to seven I'm just going to leave it at seven the low end. I'll always fair out on the low end.

[00:11:52]And they're they're given 25 25x a PE ratio. You should see something like 7* 25 and you should see $20 billion of market cap at a minimum guys. at a minimum. Remember, these are all breaking points for the stock. If they get there, if they get to these thresholds where you get into the S&P 500 where you find true value, you then got to ask yourself, who's the big dog on the street? How is eBay going to defend itself against a a company coming in that's bigger than them? All Ryan has to do is deploy capital, keep it sweet, keep it small, and keep doing what he's doing. So, there's more to break down. I will break down more in there. This is just a video I'm doing as I walk up the mountain because as I walk up this mountain, this talk's going to be in my head. Not this talk, but all talk. All GameStop talk. I mean, it's just there for me. So, I'm very excited about GameStop. Very excited about what's happening in the future, the near future. You're here now, guys. So, if history's going to repeat itself, well, then Ryan Kitty comes back right now.

[00:12:57]Okay, he's not coming back. That's fine.

[00:12:59]We're going to do an offering. We're going to raise some cash off of these new numbers because you'll find investors and they're all going to be diamond handed investors because to invest now is the ideal thing to do. The bigger the chunk, the bigger the, you know, the investment, that's awesome.

[00:13:14]But I think Ryan knows what he wants. I think that's why they push back the annual shareholders meeting. I think once they have these numbers out loud and people see it tomorrow morning, they should be able to do some real simple math. We're not talking small numbers, guys. I'm not talking doom and gloom like people try to tell you. The real metric is right here in front of you. We got cash. We got options and we've got time. Enjoy yourself, guys. I got to get up to the mountain. I got to lose this weight. Uh I weighed in today this after lunch everything. I had two pickles on my way here. Um I was 245.

[00:13:52]By the end of tonight, I'm supposed to be 242.

[00:13:57]2:42 tonight. So, let's see how far down I can come. I have on the trash bag. I have everything. I just don't have on a jacket today. All my jackets were dirty.

[00:14:06]I have to do I have to do the laundry.

[00:14:09]So, shout out to me cuz I'm going to do it. But hey, one more thing. This was God's test for me today. I promise you.

[00:14:17]To see amazing numbers, record-breaking numbers, numbers you've never seen in your world, and the stock can not move, that's that's a test. But to see all of that and want to go live and and spend my time with you guys and do it, it's another test.

[00:14:32]Is my mission is my goal for my body and my mind. Is it more important to me than a headline? Yeah, I'm dialed in. I'm locked in. And I hope you are, too.

[00:14:44]GameStop. Can't stop. Won't stop.

[00:14:46]GameStop. One step closer. Millionaires.

[00:14:50]One step closer. I'll see you tonight.

[00:14:53]Peace.