Core Insights - Gamestop (NYSE: GME) has been trading near its 2025 lows since the last earnings report on June 10th, indicating a lack of positive momentum in the stock [1] - The earnings release highlighted a shrinking core business and an unclear investment strategy, which raises concerns about the company's future performance [1] Company Analysis - The core business of Gamestop is experiencing a decline, which is a significant factor affecting investor sentiment [1] - The investment strategy of the company appears to be vague, contributing to uncertainty regarding its growth prospects [1] Market Context - The current trading position of Gamestop suggests that it is struggling to regain investor confidence, as reflected in its stock price hovering near historical lows [1]

Core Viewpoint - Andrew Left, founder of Citron Research, has initiated a short position on Palantir Technologies, labeling the stock as "beyond overvalued" and targeting retail investors, similar to his previous short on GameStop [1][2]. Company Valuation - Left argues that Palantir's stock is overvalued based on various metrics, stating that even if it were the best company, its current valuation exceeds reasonable multiples [3]. - The forward price-to-earnings ratio of Palantir is highlighted as being over 200x, indicating a significant overvaluation [3]. Market Context - Left's short call comes after a period of significant stock market activity, with Amazon and First Solar stocks rising 34% and 52% respectively since his previous recommendations [5]. - Palantir's stock was down 1.4% to $184.37 on the day of the announcement, having reached an all-time high of $189.46 during intraday trading [8]. Competitive Landscape - Left mentions Databricks as a competitor to Palantir, noting that Databricks has more customers and could be a company to watch when it goes public [8]. Investment Strategy - Left maintains a balanced portfolio, being long on Amazon and Apple while shorting Palantir, indicating a diversified investment approach [6]. - He also expresses optimism about Rocket Companies, which he believes has potential catalysts for growth [7].

In the latest close session, GameStop (GME) was up +2.32% at $22.93. This move outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.1%, and the Nasdaq, a tech-heavy index, added 1.39%. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which varies betw ...

Core Points - Goodyear celebrated its 100th anniversary by hosting the world's first Pokémon battle in collaboration with GameStop, taking place 1,000 feet above Los Angeles [1][2][5] - The event featured prominent figures including YouTuber Casey Neistat and Oculus VR founder Palmer Luckey, among others [3][4] Company Overview - Goodyear is one of the largest tire companies globally, employing approximately 68,000 people and operating 53 facilities across 20 countries [6] - The company has two Innovation Centers located in Akron, Ohio, and Colmar-Berg, Luxembourg, focusing on developing advanced products and services [6]

Group 1 - GameStop's stock closed at $22.63, reflecting a +2.4% increase from the previous day, outperforming the S&P 500's gain of 1.47% [1] - Over the last month, GameStop's shares decreased by 6.32%, underperforming the Consumer Discretionary sector's loss of 4.65% and the S&P 500's gain of 0.64% [1] Group 2 - GameStop is expected to report an EPS of $0.19, representing an increase of 1800% year-over-year, with projected net sales of $900 million, up 12.74% from the previous year [2] - For the full year, earnings are projected at $0.75 per share and revenue at $3.58 billion, showing changes of +127.27% and -6.29% respectively from the prior year [2] Group 3 - Recent changes to analyst estimates for GameStop indicate positive sentiment towards the company's business operations and profit generation capabilities [3] - The Zacks Rank system, which includes estimate changes, provides a rating system that has historically outperformed expectations, with stocks rated 1 delivering an average annual return of +25% since 1988 [5] Group 4 - GameStop currently has a Forward P/E ratio of 29.47, which is a premium compared to the industry average Forward P/E of 23.55 [6] - The Gaming industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 93, placing it in the top 38% of over 250 industries [6]

A deeper push into collectibles and trading cards continues for video game retailer GameStop Corp GME with the company's latest launch. GME is currently moving to its 52-week bottom. Track it now here. What Happened: GameStop is expanding its partnership with trading card grading company PSA, which is owned by Collectors Universe. The companies first partnered in 2024 and Collectors Universe CEO Nat Turner is a member of the GameStop board of directors. Together, GameStop and PSA are launching Power Packs, ...

Core Insights - GameStop Corp. (GME) is undergoing a significant transformation from a traditional video game retailer to a tech-oriented company, while Best Buy Co., Inc. (BBY) is enhancing its digital-first omnichannel strategy [2][3][22] GameStop (GME) - GameStop's collectibles segment experienced a remarkable growth of 54.6% year-over-year, reaching $211.5 million, now accounting for 28.9% of total revenues [4] - The company has successfully reduced adjusted SG&A expenses by nearly 25% to $225.3 million, improving operational leverage with SG&A at 30.8% of net sales [5] - GameStop's gross margin increased by 680 basis points to 34.5%, contributing to an adjusted operating income of $27.5 million and adjusted EBITDA of $38.6 million [5] - The company ended the fiscal first quarter with over $6.4 billion in cash and securities, a significant increase from $1 billion a year earlier, and acquired 4,710 Bitcoins to appeal to a younger consumer base [6] - Despite these improvements, total net sales fell 16.9% year-over-year to $732.4 million, driven by declines in hardware, accessories, and software sales [7] - The Zacks Consensus Estimate for GME's fiscal 2025 sales implies a year-over-year decline of 6.3%, but EPS is expected to surge by 127.3% [14] Best Buy (BBY) - Best Buy is recognized for its resilience and customer-focused approach, showing strength in computing, tablets, mobile phones, and gaming, with a 6% comparable sales growth in computing and tablet categories [8][10] - Online sales constituted 31.7% of domestic revenues, with nearly 60% of orders delivered or available for pickup within one day, highlighting the effectiveness of its omnichannel model [10] - The company is investing in customer experience with enhanced in-store zones and strategic partnerships, particularly in mobile activations [11] - However, BBY faces renewed tariff pressures and soft demand in key product categories, leading to a revised fiscal 2026 revenue outlook of $41.1 billion to $41.9 billion [12][13] - The Zacks Consensus Estimate for BBY's fiscal 2026 sales suggests a slight decline of 0.2%, with EPS expected to decrease by 2.4% [14] Stock Performance and Valuation - GameStop's shares have declined 17.5% over the past three months, reflecting investor skepticism, while Best Buy's stock has risen 1.6%, indicating market confidence in its execution [17] - GameStop is trading at a forward price-to-sales (P/S) multiple of 3.14, above its three-year median of 1.28, while Best Buy's forward P/S multiple is at 0.34, below its median of 0.38 [19] - GameStop is viewed as a more compelling investment opportunity due to its transformation strategy and improving financials, while Best Buy's growth is hindered by macroeconomic challenges [22][23]

Meme Stock Phenomenon - Meme stocks experience volatile price swings unrelated to business fundamentals, often involving heavily shorted, cheap stocks [4] - Retail investors leverage social media to drive up stock prices, challenging institutional investors [3][8] - GameStop's surge, fueled by Reddit users, demonstrated the potential for massive gains and losses, impacting hedge funds [9][10] - Kohl's, like other recognizable brands, became a target for meme stock activity due to its household name and high short interest [11][12] Kohl's Business Performance - Kohl's stock experienced a 100% surge due to meme stock activity, despite underlying business performance being just "okay" [1] - From July 2021 to July 2025, Kohl's stock price decreased by approximately 85% [17] - Between 2019 and 2024, beauty and accessory sales increased by 38% due to the Sephora partnership, but overall sales decreased by 18.5%, and excluding beauty, sales decreased by around 26% [19] - Kohl's has lost 1.3 million customers over five years to competitors [17] Risks and Outlook - Short selling involves borrowing and selling stock, hoping to buy it back at a lower price, but losses can be exponential if the price rises [5][6] - Wild stock swings can distract from Kohl's need to focus on day-to-day operations [21] - While not in immediate danger of bankruptcy, Kohl's faces challenges and needs to experiment with different strategies under an interim CEO [18][19][20] - Predicting the next meme stock is difficult, but companies with household names and high short interest are potential candidates [14][16]

Core Viewpoint - The resurgence of "Meme stocks" is driven by social media discussions and a surge of retail investors, leading to significant price volatility without fundamental changes in the companies involved [1][4]. Group 1: Characteristics of Meme Stocks - Meme stocks often share common traits, including the ability to spark collective imagination among internet users and gaining traction from influential retail investors on social media [2]. - These stocks typically have high short interest, indicating that professional investors are betting against them, and they often have lower share prices [3]. Group 2: Market Environment Comparison - The current market environment in 2025 differs fundamentally from that of 2021, with high interest rates and uncertain tariff policies, which should suppress risk appetite; however, speculative trading has become active again [4]. - The number of stocks involved in the current wave is fewer than in 2021, but the volatility is more pronounced and the price increases are short-lived [4]. Group 3: Trading Dynamics - For instance, Opendoor's stock surged by 43% on July 21, with a trading volume of 1.9 billion shares, accounting for about 10% of total U.S. stock trading that day [4]. - The surge in stocks like Kohl's and Krispy Kreme was driven by short squeeze dynamics, where short sellers are forced to buy back shares, pushing prices higher [4]. Group 4: Risks and Ethical Concerns - Trading in Meme stocks carries high risks as the motivations for buying are often unrelated to the companies' fundamentals, leading to significant volatility [5]. - The ethical implications of social media influencers affecting stock prices are debated, with concerns about undisclosed information regarding their holdings and motivations [9]. Group 5: Sustainability of Meme Stock Trends - The sustainability of Meme stock trends relies on continuously attracting new investors, which has proven difficult in the current market environment compared to the pandemic period [10]. - Historical patterns show that the price surges of Meme stocks are often short-lived, as evidenced by the rapid decline of stocks like Faraday Future [10].

Market Trends - Meme stocks, popularized by the 2021 GameStop event, are resurging [1]