GME Bull Case

• Originally, when GameStop gained much attention in 2021, it was a contrarian investment with many weaknesses
• After a period of 5 years in a row of net losses, GameStop was net profitable in FY 2023 and again in FY 2024,
• GME has a strong and committed base of investors. Over 170 thousand individuals hold registered shares of GME, most of whom have been holding since 2021.
• The strong shareholder base shares an alignment of financial interests with the GameStop CEO and chairman Ryan Cohen, who does not receive compensation, but rather only holds shares.
• As part of turnaround efforts, GameStop is designing and selling new original products, and forming new partnerships.
• The video game industry is an approximately $200 B per year industry, and growing, with many opportunities for a company like GameStop to generate new business.
• GameStop has expanded efforts into the collectibles market, an industry even larger than video games, at approximately $500 B per year.

The circumstances around GME have changed significantly from 2020 to present.

Before GameStop gained much attention in early 2021, it was a struggling brick and mortar retail business in the video game industry. A multitude of Wall Street participants saw the vulnerable position that GameStop was in, and bet against GME stock.

However, from 2021 onward, under a new leadership team, GameStop has been transforming itself into a much more lean, agile, and valuable company.

Any notion that the company is going to go out of business soon is now plainly false. GameStop has a negligible amount of debt, and a huge pile of cash that generates more cash from interest.