Often times, when a public company really underestimates Wall Street estimates on a key metric for a quarterly earnings report, that company’s executives will use the call for results with analysts to explain what happened. lest they risk the wrath of investors who are willing to get what they want.
But in 2021, the year of memes stocks, that’s no longer the case. Just ask The Mother Meme: GameStop GME,
As you might expect, GameStop stock fell sharply on Wednesday after office hours, as Wall Street again shook its head at what was happening at the video game retailer.
But on social media, where GameStop’s largest investor base operates, the results were greeted with enthusiasm as retail investors devoted themselves to the stock and its chairman guru Ryan Cohen guessed positive results in the measures that really interest them.
For starters, GameStop also revealed that sales reached $ 1.3 billion, easily exceeding Wall Street’s consensus estimate of $ 1.19 billion, and attributing at least some of that growth to “relationships of brand new and expanded ”, and some of the company’s biggest expenses appear to be on growing its order fulfillment operations to fuel its shift from a physical operation to a growth story of e-commerce.
This is what many of GameStop’s reddit “Monkeys” rejoice to hear from Cohen and his team, and they may avoid PSE because they remain hyper-focused on the long-term growth of the business and the “plan. Cohen’s still ethereal director. . ”
And don’t take our word for it. Retail investors continue to take their stocks and lock them into direct registration systems with companies like Computershare CPU,
that prevent investors from accessing and borrowing stocks to sell them short.
Between the notion of growing sales, more e-commerce operations, and expanded partnerships with companies that give GameStop increased access to the Promised Land even of blockchain and non-fungible tokens, GME fans might assert that there was really no need for information income. call – despite the stock’s 3% drop in after-hours trading.
And that’s kind of what investors got.
Once again, GameStop CEO Matt Furlong chaired a very brief call that did not include Cohen but made reference to NFTs, blockchain and reinforced the company’s commitment to serving its customers. and its shareholders.
Cohen’s mysterious plan, which has been criticized by some GameStop analysts and watchers for months now, did not materialize, as Cohen did on Wednesday, but Cohen’s no-show and the call’s brevity did have not disappointed Apes, who not only predicted it. on Reddit but supported it as part of the plan.
“There will be a bunch of FUD [fear, uncertainty, and doubt] messages saying “We need to know a plan on the conference call tomorrow / today they owe us,” “one post on GameStop subreddit r / Superstonk read. “They don’t owe you anything. Let them continue to run. You just need to BUY and SAVE and DRS. “
In general, GameStop Apes was thrilled with a earnings report that most Wall Street analysts will find disappointing – but again, analysts don’t realize that GameStop doesn’t see Wall Street as its audience, and that it does. is even starting to see him as his opposition.
But one thing even GameStop executives might have to spend a little more time explaining is a curious disclosure at the end of its results filing.
Citing an SEC investigation opened in May into the January short squeeze of GameStop shares that appeared to have been closed after the SEC released its report in October, the company said in its filing on Wednesday that the SEC had requested additional documents “August 25, 2021”. and that “We are in the process of producing the documents and have been and intend to continue to cooperate fully with SEC staff regarding this matter. “
In the end, GameStop CEO Furlong stuck to the loose growth storyline that won over his true audience, telling listeners on the call – no questions asked – that GameStop is now in the game. quest for the ‘ladder’ he will use to continue to drive growth and change.
What if you’re the kind of investor who might walk away from that kind of talk and ask yourself what it means even when your losses widen, and when GameStop is going to stop acting like a meme action and start acting like the kind of business Wall Street wants to invest, we can help you.
The answers are: why wouldn’t he either when the stock is up over 900% in 2021? And also, GameStop doesn’t talk to you.