Is GME all hype?

March 20, 2021, 1:10 pm

As GME and WSB took the stock market with storm in January, I took part in the first wave and cashed out at 300%. But then I took a look at the company and couldn't find anything that got me excited. Here's a look at some alternative data points for GME before the earnings report on Tuesday.

First things first, GME is the most mentioned stock on Reddit and it’s not even close. Since January, GME has been mentioned an average of 10.000+ times per day on Reddit.

Gamestop is also among the most mentioned stocks on the popular forum StockTwits with around 11.000+ mentions per day. Sentiment is high, 81% of all mentions are bullish.

Gamestop gets around 1,000 new followers per day on Instagram. That is an impressive number, especially compared to their competitors.

All mentions on social media have probably been one driving factor to the increase of website visitors. Gamestop.com attracted around 53 million visitors in February, up 30% since October last year.

Gamestop’s mobile apps (where users can get personalized gaming news and buy games) are downloaded 250k times per month, up from around 210k a month ago. Decent growth. And users like the apps, the average review is 4.5 stars out of 5.

Around 42k people are working for Gamestop and the company currently has 6,282 open job positions. This is a high number but it’s actually down from 6,672 in December and the number of total employees is also down by 3k in the last year. A growing company should have an increase in open positions month over month (if it’s not restructuring or pivoting) so this is a little bit of a red flag.

The average employee review is pretty low (3.2 stars out of 5) and employees are complaining about Management and limited Career Opportunities.

I was hoping to find a company that was growing, and that had happy employees. Looking at alternative data points, this doesn't seem to be the case with GME and I will personally stay out and watch this hype from the sidelines.

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