The Gamestop (GME) episode will forever have its place in stock market lore – but that moment is over. GME reported 4Q22 earnings Tuesday afternoon and – unsurprisingly – no turnaround is in sight and the business remains in terminal decline.
Full year 2022 sales declined 1% compared with 2021 to $5.9 billion and GME lost $1.02/share on an adjusted basis compared to $1.14 a year ago. GME does have an impressive war chest of $1.4 billion in cash and short term securities from timely share sales during the mania which means they can continue to operate for a few more years if they so chose. But they lost ~$300 million in each of the last two years and there is no reason to expect that to change going forward.
GME shares are popping 49% in the premarket – probably because they turned a 16 cent profit in 4Q22 – but I’d take this opportunity to move on. There are better places to put your money.