Well, fellow apes, GameStop just proved the haters wrong once again! Today's earnings showed that our beloved GME is profitable—a testament to the strength of this company and its leadership.

Why Q4 Will Be 🔥 FIREWORKS 🔥

1. Profitability Achieved:

For Q3, GameStop reported:

Net Income: $17.4 million

Earnings Per Share (EPS): $0.04 This is a significant turnaround from the prior year’s loss, highlighting the effectiveness of the company's transformation efforts.

1. Strong Financial Position:

Cash and Cash Equivalents: A staggering $4.616 billion, up from $929.2 million last year, providing incredible liquidity.

Inventory: Approximately $560 million, down from $632.5 million last quarter, showcasing efficient inventory management.

Accounts Payable: Reduced to $220.5 million from $324 million, reflecting better payment cycles.

1. Growth from PSA and Trading Cards:

GameStop’s integration of PSA grading services and trading card sales has been a quiet success story. These high-margin, fast-growing categories are contributing meaningfully to overall revenue, driving profitability and diversifying income streams.

1. Holiday Shopping Surge:

With the holiday season upon us, GameStop is poised to capitalize on:

New game releases

Console bundles (think PS5, Xbox Series X)

High-demand collectibles, accessories, and trading cards Q4 is typically the company’s strongest quarter, and this year is no exception.

1. Console Additions & Gaming Boom:

The gaming industry continues to grow, and GameStop’s strategic positioning in physical and digital sales ensures it captures a significant slice of the pie. Expect massive foot traffic and online sales this quarter.

1. Cost Management Success:

GameStop’s strategic moves, such as:

Store closures in underperforming markets

Focus on high-margin product categories

Effective inventory and accounts payable management ...have set the stage for sustainable profitability.

Revenue and EPS Expectations for Q4

Revenue Estimate: $2.1B–$2.3B, fueled by holiday shopping, trading card sales, and PSA service expansions.

Expected EPS: $0.08–$0.12, reflecting increased margins and higher sales volumes.

Share Price Estimate Based on Fundamentals

Using GameStop's cash-rich balance sheet and expected Q4 profitability:

With an annualized EPS of $0.30–$0.40 (based on Q4 performance), and a conservative P/E ratio of 25 (for retail companies), the fundamental stock price would range between $7.50 and $10.00.

However, based on speculative sentiment and momentum from Q4 sales, a fair value price could range between $35–$40 during the next earnings release.

This does not account for potential momentum from RC (Ryan Cohen), DFV (DeepFingValue), or strategic investments made with GameStop’s $4.6 billion cash on hand.*

TL;DR:

GameStop crushed it today. Q4 is set to be legendary, with holiday shopping, PSA and trading card growth, new console releases, and strong cost management. Revenue could top $2.2B, with EPS climbing to $0.12. I could see the stock price reaching $35–$40 next earnings, purely based on sales performance.

This doesn’t even include the potential impact of RC, DFV, or investments using that massive cash pile. Strap in—Q4 fireworks are coming! 🌕 🚀

Remember what DFV said on his last stream, "Do we trust Ryan Fucking Cohen?" Yes we do! Diamond Hands Forever 💎🙌 Let’s keep the momentum going, apes! 🦍