Macronomicon

Tier 3 Gamestop

3 min read

Tier 3 Gamestop

Bear Case

  • [UNVERIFIED] GameStop’s short interest reached 170-180% of outstanding shares at peak, representing a material illegal shorting position.

    At one time I believe that it was 170 to under 180% of the outstanding shares were shorted on Gamestock. Obviously totally illegal.

    • Correction: Short interest above 100% of outstanding shares can occur through multiple legitimate mechanisms (independent short positions by different investors), though abusive naked shorting is illegal. The peak figure is disputed, with credible estimates ranging from 140% to 200%+ depending on data source and calculation date.

Bull Case

  • [UNVERIFIED] Ryan Cohen’s compensation package is tied to growing GameStop to a $100 billion market cap; GameStop was down 36% the prior year and posted $77 million net income in Q3.

    He’s in for a payday, but he has to make Gamestock grow to 100 billion. And if the Gamestock was down 36% last year, had net income of 77 million in the third quarter.

Key Variables To Watch

  • [UNVERIFIED] As of January 26, approximately 68 million GameStop shares remain shorted, representing approximately 16% of the float.

    So as of January 26, there are approximately 68 million shares of GameStock that are still shorted. Okay. This represents 16%.

    • Correction: Short interest figures should be verified against FINRA’s official short interest data (finra.org/market-data/short-interest) or S3 Partners data for accuracy on specific dates.
  • [UNVERIFIED] GameStop’s short interest decreased from 24% of the float (August/November) to 16% (January), with short interest hovering between 66-72 million shares in late 2025.

    it was um 24% of the float was shorted. Okay? And the short interest hover between 66 and 72 million shares in late 25 with minor fluctuations.

    • Correction: Short interest data should be verified against FINRA’s official short interest reports or institutional data providers like S3 Partners, Ortex, or Bloomberg for accuracy on specific dates and percentages.

The Thesis

  • [UNVERIFIED] The initial conversion rate for GameStop’s convertible securities is 34.58, implying a conversion price of approximately $28.91 per share on $1,000 principal bonds.

    the first initial conversion rate is 34.58. Okay? And and on a thousand in principle the bond it’s roughly 28.91 a share.

  • [UNVERIFIED] GameStop reported earnings per share of 82 cents.

    the earnings per share are 82 cents

  • [UNVERIFIED] GameStop’s dividend yield is approximately 7%.

    They pay a dividend which is 7%

  • [MISLEADING] GameStop’s P/E ratio is elevated relative to revenues, with revenues of $3.8 billion versus a market cap of $9.5 billion, representing an inversion of normal valuation metrics.

    Uh their revenues are 3.8 billion. Okay. So you can see there’s a disconnect between the market cap and the revenues because normally you know your revenues are three times your stock price.

    • Correction: GameStop’s annual revenue was approximately $5.1 billion for FY2023 (ended February 2024), not $3.8 billion. The $3.8B figure may represent quarterly revenue. The valuation disconnect claim is directionally correct—market cap significantly exceeds revenues—but the specific revenue figure cited is inaccurate.
  • [VERIFIED] GameStop has 448 million shares outstanding with a market cap of $9.5 billion, creating a disconnect between share count and fundamental business metrics.

    Uh they have 448 million shares. Their market cap is nine and a half billion.

  • [UNVERIFIED] GameStop has issued $5.5 billion worth of zero-coupon convertible securities, with full conversion potentially yielding 130-140 million additional shares.

    basically they have now issued 5005.5 billion worth of convertible securities into the market and people have bought them. Full conversion could yield approximately 130 to 140 million shares.

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