GME Stock – Is the stock price of GameStop (GME) the same?
What started as an online phenomenon has grown into a bigger one. Investors and traders of all disciplines are trying to take advantage of becoming one of the hottest companies in the world. New York Stock Exchange..
Unfortunately, the company’s fundamentals haven’t kept up with the astounding stock performance to date.
GameStop (GME) Stock price Fundamentals
In fiscal year 2021, the organization reported revenue of $ 5.1 billion and a loss of $ 215 million.
Prior to the recent rally, GameStop (GME)’s share price had been squeezed for years. The company, which owned a retail store with a large physical store, struggled to compete with its online peers.
But last year was a turning point for the group. As the pandemic raged around the world and the company’s stores suffered further turmoil, management took decisive steps to move more businesses online.
Several other steps have been taken to be more positive. Hired several new executives, including. Amazon.com Elliott Wilk executives Chief Growth Officer And founder Ryan Cohen Chewy.com Became a pet supplies giant and sold for over $ 3 billion.
In addition, Rumor has it that Cohen will bring in e-commerce professionals with the goal of turning GameStop into a suitable retailer for the 21st century.
In addition to these initiatives, GameStop’s share price was boosted when it became clear that the company was expanding into the world of non-fungible tokens (NFTs) and cryptocurrencies.
Some analysts believe in a recent recovery at GameStop, Stocks are just speculation, I can see a scenario where stock prices continue to rise.
At the time of this writing, it is trading at four times the selling price (P / S).Online retailer EtsyAre similar in market capitalization but traded at a P / S ratio of 10. As a result, GameStop (GME) stock prices look cheap.
That said, this is just an estimate of value. There is no guarantee that GameStop will successfully pivot to online retail.
Etsy is already a well-established online retailer with a global presence. GameStop is not equally recognized by consumers around the world. It may never be achieved. It may take years before the rebuilding of the company begins to materialize.
Therefore, this company seems to me to be very speculative. If the ambition to become the game’s Amazon can be put into practice, stock prices may be cheaper at current levels and continue to rise. But otherwise it looks expensive.
There are so many uncertainties ahead that I wouldn’t buy that company for my portfolio, despite the potential for the best scenario.