GME - Embedded Expectations Analysis - 2020 12 01
GameStop Corp. (GME:USA) currently trades at a discount relative to UAFRS-based(Uniform) assets, with a 0.9x Uniform P/B. At these levels, the market has expectations
for profitability to remain muted, and management may be concerned about their
digital sharing agreements, long-term growth prospects, and store closures
Specifically, management may lack confidence in the sustainability of the surge in demand and in their ability to build momentum. Additionally, they appear concerned about their digital revenue sharing agreements, long-term growth prospects, and their new payment options. Finally, they may be concerned about their closure of 206 stores, their liquidity position, and the impact of the delay of several key software titles
GameStop is a multichannel video game and licensed consumer products retailer. The company's products and services includes: New Video Game Hardware, which provides video game platforms from manufacturers; New Video Game Software, which provides new video game software for existing and certain prior generation consoles from manufacturers, including Sony, Nintendo and Microsoft; Video Game Accessories, which consist primarily of controllers, gaming headsets, virtual reality products, and memory cards; and Digital, which sells a variety of digital currency and has developed technology to sell downloadable content and full-game downloads in its stores and on its U.S. website.
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