Home Cryptocurrency GameStop No Longer a Top Draw At Reddit’s WallStreetBets Poker Table

GameStop No Longer a Top Draw At Reddit’s WallStreetBets Poker Table

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GameStop No Longer a Top Draw At Reddit's WallStreetBets Poker Table


Do you remember the adoration of GameStop? (GME) – Get GameStop Corp. Class A Report On WallStreetBets, Reddit’s popular online investing community?

It’s a match made in heaven, technically, in the midst of a pandemic. Their wildly popular chemistry has captured the imaginations of millions of stock market investors, full of tantalizing beginnings in a way befitting a classic Victorian romance.

But ultimately, the metaphor of conflict is what drives the story forward.

GameStop mentioned on WallStreetBets today is part of a thread about the most painful trade losses.

Ask WallStreetBets founder Jamie Rogozinski about the heady days of GameStop’s trading frenzy, which surged to nearly $500 a share at its peak last January, and he paints a grim picture for the future.

“It’s unlikely we’ll see this again, mostly because the market itself is sensible. A lot of the things that have been done to make GameStop work have been blocked. It’s not just people buying this stock, it’s not just that,” Rogozinski said in an interview with Yahoo Finance.

Users on WallStreetBets agreed with Rogozinski.

Since April 2020, Rogozinski has not moderated the popular Reddit message board, which specializes in higher-risk, higher-reward investments than other, more conservative financial communities might find.

He told Yahoo Finance he’s working to build a “brand of financial entertainment” in the form of podcasts and a website.

“The market is now defending against this type of volatility, but that’s good because now that inefficiency has been addressed. The market is slightly better, stronger, and more sustainable than it was before GameStop,” added Rogozinski.

Going forward, he expects communities like WallStreetBets to explode in the crypto world.

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“It’s so new, and the number of inefficiencies waiting to be exploited is limitless. It’s now easy to find inefficiencies and exploit them,” he said.

Gamestop’s transition to technology

It’s no surprise to see the legacy video game retailer’s stock down nearly 41% year to date. Its latest quarterly earnings were hurt by supply chain issues sparked by the pandemic.

The Grapevine, Texas-based company posted an adjusted net loss of $141 million, or $1.86 a share, for the quarter ended Jan. 29.

Sales rose 6% to $2.25 billion from $2.12 billion a year earlier.

It now plans to launch its non-fungible token or NFT marketplace by the end of the second quarter of fiscal 2022, as it looks to transform into a tech company.

“We’ve learned from the mistakes of the past decade when GameStop failed to adapt to the future of gaming. It’s important to highlight that GameStop has become such a cyclical business, starved of capital, that we had to rebuild it from the inside,” CEO Matt Furth said. Long said on the company’s earnings call on March 17.

GameStop has partnered with Immutable X to support the development of its NFT marketplace and offer up to $150 million in IMX tokens, the company said.

no recipient yet

But market watchers have a hard time coming up with the many drivers of the company’s revenue growth.

Investment firm Wedbush said GameStop may see “limited success” in developing the NFT marketplace as the solution of choice for gamers.

“Barriers to success include the walled garden that exists around major players in the console distribution space, and GameStop’s limited customer base of PC gamers,” Wedbush analyst Michael Pachter wrote in a note.

Pachter also added that GameStop is expanding the product to PC [personal computer] Annual sales of games and accessories may not exceed $300-$500 million in the next few years.

“We don’t think this category will make up a significant portion of total revenue,” he added.

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