然而，从游戏驿站披露的财务数据来看，Keith Gill在2020年夏季对这家公司的乐观预测，如销售和盈利能力的复苏，尚未持续实现。而这些预测正是支持Keith Gill论点和投资者热情的重要因素。Wedbush分析师Michael Pachter表示：“Keith Gill在2020年的一些想法真的很周到，而且绝对准确。”不过，这位研究游戏驿站已有20多年的分析师补充称，这家公司的核心业务如今正面临越来越多的挑战。From gamestop's disclosed financial data, it can be seen that Keith Gill's optimistic predictions for the company in the summer of 2020, such as the recovery of sales and profitability, have yet to be continuously realized.
He once promoted the "retail investors vs. wall street" movement and caused a frenzy.$GameStop (GME.US)$Keith Gill, the leading American retail investor who pushed up the stock price, returned to social media last month and triggered a rise in meme stocks, including gamestop.
Keith Gill, whose username is "Roaring Kitty", can cause major swings in GameStop's stock price by posting information on social media. After Keith Gill returned to social media on May 14th, GameStop rose nearly twice in the following two days, but then gave back most of the gains. On June 3rd, Keith Gill shared a screenshot of his securities account holding GameStop positions, leading the stock to rise 21% that day.
However, it seems that Keith Gill's optimistic predictions for GameStop in the summer of 2020, such as the recovery of sales and profitability, have not been sustained according to the financial data disclosed by GameStop. These predictions are important factors supporting Keith Gill's arguments and investor enthusiasm. Analyst Michael Pachter of Wedbush said, "Keith Gill had some really thoughtful ideas in 2020, and they were absolutely accurate." However, the analyst who has been studying GameStop for more than 20 years added that the company's core business is facing more and more challenges.
Optimistic predictions have not been realized.
It is reported that Keith Gill estimated in 2020 that GameStop's sales and profits would improve and would adopt a transformational business strategy based on nurturing player communities. At that time, Keith Gill predicted that the threat of digital game downloads to GameStop's retail business was "overstated," and the transition of the entire industry to digitization seemed to be slower than those who were bearish on GameStop feared.
These predictions do not seem to have come true. Michael Pachter pointed out that the market for physical game software sales has shrunk rapidly since 2020. Game analysis company Newzoo stated last month that the game market is almost completely away from physical sales.
Four years ago, Keith Gill also predicted that George Sherman, then CEO of GameStop, would reshape the company as a leading game center with his "GameStop Reboot" plan. It is reported that GameStop launched 12 concept stores in the fall of 2019, including interactive game spaces, which are also one of Keith Gill's arguments. In February 2021, Keith Gill reiterated his optimistic view, stating that GameStop "has a unique opportunity to pivot towards a technology-driven business by embracing the digital economy." However, after the pandemic and disappointing financial performance, GameStop has stopped providing updates on its concept stores.
Keith Gill also predicted that GameStop's profits would significantly improve from the second half of 2020. However, GameStop's financial data showed that the company's net losses in the 2020, 2021, and 2022 fiscal years were USD 215 million, USD 381 million, and USD 313 million, respectively. However, due to expense cuts, the company turned a profit in the 2023 fiscal year and achieved net income of USD 6.7 million.
Keith Gill also believed that GameStop's revenue would grow. Although GameStop's revenue reached USD 5.09 billion in the 2020 fiscal year and increased to USD 6.01 billion in the 2021 fiscal year, the company's revenue fell to USD 5.93 billion in the 2022 fiscal year.
Nearly four years have passed, and despite most of Keith Gill's key predictions not coming true, he remains optimistic. In addition, under the craze of retail investors, GameStop's stock price has skyrocketed, enabling the company to raise funds. The company announced on Tuesday that it raised USD 2.14 billion by selling 75 million shares of its stock for the fourth time. Michael Pachter said that GameStop's stock sale generated a lot of cash buffer, which is expected to generate USD 100 million in interest income annually.
Andrew Left, the well-known short seller and founder of Citron Research, said on Wednesday that he had closed his short position on GameStop because the company is raising funds. However, he said that he did not think the company's fundamentals would improve.
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