Time for some historical perspective! Let's take a look at the percentage change Q2 revenue since 2001!

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2001-2021

Talk about reversing a deep fucking trend.

This is the highest Year over Year change in Q2 revenue since the tail end of the PS3/XBox360 launch window. Those years of sharp growth came with the most anticipated console launch in years, and (from experience) the demand was MASSIVE. It was on the tail end of several years of aggressive growth. It was GameStop's heyday in the retail space.

While many may point to the 2021 Q2 earnings in a vacuum and say that they aren't impressive, I think that's a huge trap. You HAVE to consider the historical trends of where the company had been heading previously.

5 out of 6 previous years of decline YoY in Q2 revenue. The only increase was 3.4%. The 3 previous years showed an exponential level of decline. And not only did we stop it this year, and pulled the e-brake on that pattern, but posted the highest Q2% YoY gains since 2008.

That's MASSIVE.

And most importantly in my mind, they did that all with ZERO PUBLIC PLAN. All they've done is trust their customers, improve their basic business model, and embrace e-commerce to a much larger degree. They've literally broadcast NOTHING concrete about significant changes coming in the company, besides fulfillment centers and new hires. This growth was simply based on the belief we've shown in the company.

Now, imagine what happens when they actually utilize the resources they have. Debt free. 1.775 Billion Dollars in cash. A commitment to e-commerce. A yet to be defined NFT program. The earnings call ended with them saying they're going to use their 1.7b in capital to make "investments in inventory (there's some interesting theories as to what kind of inventory they need to expand into)." The list goes on and on.

If GameStop is capable of posting 25% YoY gains with only small changes to basic operational procedures? What's going to happen when they actually start doing all the things they're planning?

I know, I know, I know, we all want it to happen NOW, and we all want the news NOW. The lack of it can be disheartening. Go ahead, get out there, buy the dip to cope a bit. Feel better? Cuz this earnings report has me absolutely jacked about what this company can do when all the gears start moving simultaneously.

Buy and Hold friends.