Specialty retail chain selling video games, consoles, electronics, and entertainment merchandise.Yahoo Finance ↗gamestop.com ↗
1 take · first discussed Jun 7, 2024
Every call, plotted at the price the day they made it.
The sole view provided comes from Friedberg, who holds a high-conviction bear stance on GameStop as of June 2024. He argues the stock is fundamentally uninvestable, citing a valuation of roughly 192x EBITDA — far above the typical 7–12x range for a profitable business — alongside a 12% annual revenue decline. No other hosts offered a competing thesis, so there is no disagreement on record; Friedberg's bear case stands as the only represented position. His core conclusion is that meme-driven momentum cannot justify the company's deteriorating financial fundamentals.
Friedberg presents a clear bear case: GameStop trades at ~192x EBITDA with revenue declining 12% annually, making it fundamentally uninvestable as a business regardless of meme-driven momentum.
This stock is currently trading at about 192 times EBITDA. A business that is profitable... will typically trade for 7 to 12 times EBITDA. And this stock is trading at 192 times EBITDA and the revenue is declining 12% a year.”40:11