00:00 Speaker A

Let’s talk some earnings here. GameStop, uh, results just hitting the wire, but I should mention first, and it’s probably why the stock is up, the company is announcing an update to its investment policy to add Bitcoin as a treasury reserve asset. This was broadly speculated upon. We have seen, uh, the stock pop as of late in expectation of this. Um, there’s no other details in the statement, by the way. It just says update to its investment policy to add Bitcoin as a treasury reserve asset. There are no details on how it’s going to add it. There’s no details on how it’s going to, they’re going to raise funds to do that, although who knows, maybe they’ll follow on the heels of strategy and issue shares in order to do that. And by the way, all of this coming as the company’s numbers missed estimates. Uh, sales in the fourth quarter down 28% to $1.28 billion. That is a worse result than had been estimated.

01:24 Speaker B

Yeah, the stock, I’m just looking at the chart here. I mean, heading into this print, it was down around 20% year to date, but if you pull it back, I mean, it was up around 70% over the past 12 months. Now we’re tacking on almost 8% here in the after hours. Not a ton of coverage on the street, frankly, at this point, around this one. In fact, I see zero buys, I got one hold and one sell.

02:03 Speaker A

And we know who that one sell is.

02:05 Speaker B

Yeah, it’s our friend, Michael Pachter. We spoke to him just yesterday about GameStop in anticipation of the results, and this is what he told us.

02:23 Michael Pachter

They’re not going to make an operating profit in the in the year they’re about to report. They’re not going to make one this year or next year or ever. So, if their operations continue to lose money, it’s hard to value them at several billion dollars and the market’s just got this one wrong.

03:07 Speaker A

And indeed, you know, the company, um, coming out and and saying it did make a net income for its fiscal year 2024 here, but we’ll continue to dig into these numbers, but you know, he’s not alone, as you say, in not being enthusiastic about the stock, which is effectively a meme stock. We’ll see what happens with this Bitcoin add.

03:48 Speaker B

Yeah. You know, I think Michael just doesn’t, he’s bearish, doesn’t see a rebound in the core business, skeptical about that, you know, getting into trading cards and crypto, but got stock up six and a half percent right here. Yeah.