PPCC: Pisitófilos Creditófagos. Primavera 2025

[sudden and sharp]

How GameStop Stock (GME) Became an Unlikely Hedge    in Trump’s Trade War
-- Bernard Zambonin
https://www.tipranks.com/news/article/how-gamestop-stock-gme-became-an-unlikely-hedge-in-trumps-trade-war?utm_source=webullapp.com&utm_medium=referral
Since early April, as trade tensions weighed on the broader market, GameStop has moved in the opposite direction, posting strong gains. Its tendency to trade independently of fundamentals makes it act as a hedge against macroeconomic turbulence.

Amid the recent wave of volatility in the broader market driven by trade disputes, GameStop Corp. GME -0.59% ▼ has stood out as one of the few outliers trading higher against the tide of cratered sentiment and lower prices. This is not necessarily because its core business is shielded from the impact of tariffs or weaker consumer spending—but because it often trades independently of its actual fundamentals.

Sure, the way this stock trades is unpredictable. However, momentum indicators point to short- and long-term strength. Given everything that’s happened recently, I’m taking a cautiously bullish stance on GameStop.

GameStop’s Position as a Hedge Against Market Instability

It’s no secret that over the past five years, GameStop has been labeled a “meme stock” thanks to the extreme volatility in its share price—driven mainly by retail investors and fueled by factors not necessarily linked to the company’s actual fundamentals.

Consequently, the stock has become a rare case of an equity with a negative beta. If we look at its performance over the last five years, GameStop shows a beta of -0.41, meaning that GameStop tends to zig when the broader market zags. This inverse relationship is unusual for stocks, especially in sectors like retail, which typically move in line with the economy. That’s why assets like gold or long-term government bonds—often as portfolio hedges—are more likely to have negative betas at certain times.

That said, it’s important to note that GameStop’s negative beta over the past five years has been heavily influenced by the massive short squeezes in 2021 and the heightened volatility that followed—most recently in mid-2024. In fact, if we focus on just the past two years, GameStop’s beta is 0.79, suggesting the stock has been moving more in line with the broader market, though with less intensity.

So, to some extent, one could say that part of GameStop’s positive performance when the S&P 500 SPY +0.22% ▲ is struggling comes from this low or inverse correlation with broader market trends.

GameStop Makes Bold Move with Bitcoin



Another point worth mentioning is that GameStop has recently introduced some pretty significant updates to its business strategy, which have reignited some of the meme-era volatility.

Although sales are still trending lower, management has worked to keep profits around breakeven. Much speculation has centered around what CEO Ryan Cohen might do with the company’s growing cash reserves—reserves that practically quadrupled in 2024, thanks to massive equity offerings fueled by the hype around the return of YouTube trader Roaring Kitty betting big time on the stock.

Last year, the board gave Cohen broad authority to invest GameStop’s cash however he sees fit—including in equities. After a few quiet quarters, the company finally made two major announcements in its earnings figures published in March: an initiative to adopt Bitcoin BTC -0.34% ▼ as a treasury reserve asset and a $1.3 billion private offering of convertible senior notes.

Cohen’s strategy seems to mirror what MicroStrategy MSTR -0.85% ▼ has done—raising cash through convertible bonds and showing interest in using Bitcoin as a treasury asset. While this move does involve dilution, the stock initially popped double digits on the news before giving up gains in the following days.

Is GameStop Stock a Buy or Sell?

On Wall Street, GME stock carries a Moderate Sell consensus rating based on one Sell rating over the past three months. Being labeled a meme stock, GameStop has seen most analysts drop coverage over the past few years. One of the few exceptions is Wedbush’s Michael Pachter, who’s continued to follow the stock.

In my opinion, this was a smart play by GameStop’s leadership. It shows a clear understanding that continuing to invest in the core business just isn’t viable at this point. By betting on Bitcoin and capitalizing on the ongoing meme stock hype—arguably GameStop’s most valuable “asset” today—they’re trying to leverage the balance sheet in a way that could buy them time or open new doors. With the core business still shedding sales every quarter, GameStop doesn’t look like it can generate sustainable profitability anytime soon.



GameStop Insiders Drive Stock Momentum

The third—and most recent—factor helping GameStop’s shares rebound is directly related to the company’s unconventional leadership team.

Since Ryan Cohen first bought his initial stake—equivalent to 9% of the company’s stock at the time—in August 2020, he hasn’t sold a single share. That’s despite seeing his position surge over 4,000% during the peak of the short squeeze in 2021. In fact, he’s continued to add shares over the past five years (though in smaller amounts), now holding around 8.4% of the company’s outstanding stock, even after recent dilutions.

Most recently, in early March, Cohen purchased another 500,000 shares at $21.55 each on the open market. But he wasn’t the only one buying. His longtime partners—GameStop directors Larry Cheng and Alain Attal, who’ve been with him since the Chewy days—also joined. Despite wild price swings, both have consistently bought and held shares over the years. On April 10, shares popped after it was revealed Cheng and Attal had added 5,000 and 10,000 shares, respectively.

Generally speaking, when insiders—the people who arguably know the company best—are buying, it’s often a sign they see strong future potential or believe the stock is undervalued. But here’s the catch: GameStop is trading at ~55x forward earnings, 3.1x forward sales, and 76.7x cash flow—above industry averages. Meanwhile, its core business continues to shrink quarter after quarter.

That’s why this insider buying sends such mixed signals. It contributes to GameStop’s stock staying disconnected from its fundamentals, making it harder for short sellers to take a strong position. In turn, it helps keep the share price elevated—even as fear, uncertainty, and doubt run high across the broader market.

The latest technical data shows that most of GameStop’s short- and long-term moving averages—except for the 100-day—are flashing bullish signals, with the stock trading above those key levels. This suggests a potential continuation of the uptrend and could point to a good window to own shares.

Although Pachter has been a long-time bear on GameStop, he recently raised his price target from $11.50 to $13.50 while maintaining his Sell rating. That new target still implies a 50% downside from the latest share price. In his most recent note, Pachter argued: “If GameStop were to buy all bitcoin with their $4.6 billion in cash and trade at two times [their bitcoin holdings], the stock would drop five bucks.”

GameStop’s Hedge Potential and ‘Smart’ Moves by Ryan Cohen

As a stock that often trades for reasons unrelated to its actual fundamentals, GameStop has the potential to act as a hedge if the broader market takes a hit. On top of that, I think the recent moves by CEO Ryan Cohen—looking to invest in Bitcoin and tap into meme hype through convertible bonds—are actually pretty smart and definitely more promising than doubling down on the company’s struggling core business.

Sure, there’s still a long way to go before GameStop’s fundamentals justify an $11 billion market cap, [ ] but these recent developments have at least clarified what the management team is trying to achieve.

[sudden and sharp]

Make Python Great Again!





TARIFF -- The GREATEST, most TREMENDOUS Python package that makes importing great again!
https://github.com/hxu296/tariff
TARIFF is a fantastic tool that lets you impose import tariffs on Python packages. We're going to bring manufacturing BACK to your codebase by making foreign imports more EXPENSIVE!


Installation

Código: [Seleccionar]

pip install tariff

Usage

Código: [Seleccionar]

import tariff

# Set your tariff rates (package_name: percentage)
tariff.set({
    "numpy": 50,     # 50% tariff on numpy
    "pandas": 200,   # 200% tariff on pandas
    "requests": 150  # 150% tariff on requests
})

# Now when you import these packages, they'll be TARIFFED!
import numpy   # This will be 50% slower
import pandas  # This will be 200% slower

How It Works

Código: [Seleccionar]

When you import a package that has a tariff:

    TARIFF measures how long the original import takes
    TARIFF makes the import take longer based on your tariff percentage
    TARIFF announces the tariff with a TREMENDOUS message

Example Output

JUST IMPOSED a 50% TARIFF on numpy! Original import took 45000 us, now takes 67500 us. American packages are WINNING AGAIN! #MIPA

Why TARIFF?

Código: [Seleccionar]

Because foreign packages have been STEALING our CPU cycles for TOO LONG! It's time to put AMERICA FIRST and make importing FAIR and BALANCED again!

License

Código: [Seleccionar]

This is a parody package. Use at your own risk. MAKE IMPORTING GREAT AGAIN!



[ Cachondeíto...  ]

[conejo]

[Cadavre Exquis]

https://cincodias.elpais.com/economia/2025-04-14/encuesta-los-espanoles-contienen-el-aliento-sobre-el-futuro-de-su-situacion-economica.html

https://cincodias.elpais.com/economia/2025-04-14/radiografia-de-la-economia-espanola-a-traves-del-termometro-5d.html

https://cincodias.elpais.com/economia/2025-04-15/los-espanoles-aun-no-creen-en-el-coche-electrico.html

Saludos.

[Cadavre Exquis]

https://cincodias.elpais.com/opinion/2025-04-15/las-claves-del-dia-un-activo-mas-predecible-que-el-presidente-de-estados-unidos.html

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https://cincodias.elpais.com/mercados-financieros/2025-04-14/trump-gana-una-batalla-y-pierde-otra.html

Saludos.

[Cadavre Exquis]

https://cincodias.elpais.com/companias/2025-04-15/amancio-ortega-se-baja-del-gangnam-style-y-vende-una-tienda-en-ese-distrito-de-moda-de-seul.html

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[Cadavre Exquis]

https://elpais.com/economia/2025-04-14/carlos-cuerpo-viaja-a-washington-para-reunirse-con-el-secretario-del-tesoro-en-plena-guerra-comercial.html

Saludos.

[Cadavre Exquis]

https://elpais.com/economia/2025-04-14/el-fmi-advierte-del-riesgo-geopolitico-para-los-mercados-tras-los-aranceles-de-trump.html

https://elpais.com/economia/2025-04-14/el-gobierno-frances-anuncia-nuevos-recortes-presupuestarios-para-atajar-el-deficit.html

Saludos.

[Cadavre Exquis]

https://elpais.com/internacional/2025-04-14/trump-reitera-su-mensaje-hostil-contra-la-ue-en-el-inicio-de-las-negociaciones-comerciales.html

Saludos.

[Cadavre Exquis]

https://elpais.com/internacional/2025-04-14/xi-jinping-advierte-desde-vietnam-de-que-no-hay-ganadores-en-las-guerras-comerciales.html

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[Cadavre Exquis]

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Saludos.

[Cadavre Exquis]

https://cincodias.elpais.com/opinion/2025-04-15/estados-unidos-se-ha-convertido-en-un-riesgo-sistemico.html

Saludos.

[Cadavre Exquis]

https://cincodias.elpais.com/opinion/2025-04-15/es-hora-de-que-el-resto-de-occidente-se-una.html

Saludos.

[Cadavre Exquis]

https://www.eleconomista.es/opinion/noticias/13320874/04/25/ortega-apuesta-por-el-inmobiliario-espanol.html

https://www.eleconomista.es/vivienda-inmobiliario/noticias/13320998/04/25/amancio-ortega-ultima-su-mayor-operacion-inmobiliaria-en-espana-desde-2016-comprara-a-blackstone-la-sede-de-planeta-por-240-millones.html

Saludos.

[Cadavre Exquis]

https://www.eleconomista.es/vivienda-inmobiliario/noticias/13320078/04/25/inbest-compra-un-30-del-proyecto-de-viviendas-de-lujo-de-lar-y-blackrock-en-madrid-valorado-en-400-millones.html

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Saludos.