Yes. At ~40%, GME's short interest is among the highest in the S&P 500. Short interest = shares sold short divided by shares outstanding.
Note that this is a strong contrarian indicator for many long investors because it reflects how bad sentiment is. A whiff of good news will send the stock soaring as shorts race to cover their bets. This phenomenon can feed on itself in a short squeeze.
It's also worth pointing out that for longs, downside is equal to the share price, but for shorts the downside is theoretically infinite. This changes the psychology of shorting versus being long enormously. If you're not dead right, the losses can keep piling up with no end in sight. And when a short starts to turn against you, it's very hard to keep the trade on.
the number of shares available to buy (and borrow and short) goes down when the company buys back stock. People who are short the stock aren't shorting the stock to sell it back to the company necessarily because that's not their objective. To short a stock, a person needs to borrow it from someone who owns the stock and then sell it in the open market. That person is betting that the price will go down and that he/she can buy it back later ("cover") and return the borrowed shares.
the AAA game publishers are more like media companies than IT companies. The cost to develop the games is enormous, often exceeding the cost to develop a big Hollywood movie. And the distribution of AAA games is analogous to the movie industry, too. Movies have a window period for release in theaters, when they typically garner most of their sales, before being released into a discounted format like DVD, Netflix, HBO, etc. So, too, it is with AAA games. The big dollars flow to the console game publishers soon after release, before the discounting starts through used game channels.
To understand how expensive it is to develop these games, look no further than the income statements of the publishers. I understand that the incremental cost to replicate a game once developed is essentially zero. The point is that the upfront cost is massive.
Where do you get that $15 number? The publishers earn 15-20% profit margins currently and profits have been a lot less than that historically. If they were to sell a game for $15 that they now sell for $60 through GME (which makes say a 15% on software), the publishers would quickly go out of business, no?
Petsmart goes for 9.2x EBITDA. Petsmart is a good old bricks and mortar retailer that competes with AMZN and WMT. Specialty retailers still have a valuable place in this world...
why? digital costs the same (more when you factor in inability to trade) and really isn't more convenient when you consider download times and inability to share. sure some people will prefer digital, but GME addresses that segment of the market, too.
gamestop customers seem to love going there. they line up outside at midnight for game launches. surely, if they are willing to do that they're not bothered to drop in to do some shopping there.
what's so convenient about downloading a game anyway?
it costs the same as physical but you can't trade it, you can't loan it to a friend, and it takes hours to download.
You forgot that they might also want to avoid getting their personal info lost to hackers. PSN gets hacked again this weekend and people think they can be trusted to provide reliable streaming game services?
yeah, I listened..60 cent EPS headwind next year as they finish turnaround. But that doesn't mean EPS will be down 60 cents this year because it makes no assumption about recruitment/revenue trends next year. It's a cost headwind.
hey stinky_chart- should we start calling you stinky pants after you cr*p yourself? seeing $24.80 bid in the after market. enjoy tomorrow!