Why wouldn't they? Before he showed up, Gamestop had years of negative earnings per share. They haven't had a negative EPS quarter in almost 2 years, now. That seems like a serious turnaround.
You’re omitting the fact that they’ve had declining revenue YoY 4 years now, with no sign this won’t be year 5. Their liquidity is primarily the result of leveraged debt and sold off shares. They have had to seriously downsize, including shuttering tons of brick and mortars.
You’re picking one single metric that’s not even consistent for 2 years to assess the health of the company. It feels rather cherry-picked. The whole story is very rough for them right now, they’re in trouble.
Seasonally-adjusted EPS has been a consistent stair-step up for 2 years. Declining revenue does not matter; they're squeezing more profit out of the revenue that's left than they were out of the gobs of revenue they had before. That's just what a good business does.
>You’re picking one single metric
It's THE metric. And you are, too (a single metric, but not THE metric).
>The whole story is very rough for them right now, they’re in trouble.
Trumpian logic and speech pattern. Which speaks to its lack of veracity.
When the revenue goes to zero, how much of that pie will be profit? The industry they're in is dying quite quickly, and there are no other revenue centers. The high margin business they had was reselling physical game media.
This is the same story as other dead physical media, CD's, DVDs, etc. It's going to continue to decline, and GME has no pipeline of future revenue. They continue to close stores and shrink.
Also, “revenue isn’t important” (sic) is a wild statement to me and indicative of the state of US businesses these days. The stock is the product, that is it, and a shocking number of people have no issue with that while also saying the US needs to bring back manufacturing and build things again.
If investor (and now government with AI projects) money is being funneled into businesses that are ultimately just about their stocks and not producing anything, what will be the result of all that investment? What are we not investing in as a result?
