Uh, i'm missing some of your super chats, but i wanted to be respectful. My uh, my friends here, if you guys have not yet subscribed, checked out their channels and helped this channel get up to seventy thousand uh. We are here with the uh news. Every single day builds a bell and we are just 15 minutes away from that uh earnings call, so earnings call has not yet happened.

It happens at 2 pm, pst or 5 pm est, so that is what we're currently getting ready to ramp up, for i wanted to say how uh thank you to ldndxb uh. I asked you guys what you're gon na do with your hard earned attendees when the squeeze closes and he said, or she said, gon na use my attendees to fund my family's project in the uk to create communities and build houses for the domestically abused in the Uk insta handle is my salute, create a new instance show up to the update guys check out my salute on instagram support your mo monkey community and um and as matt it starts to gear up. I am going to uh dig around a little bit more to make sure that we're all ready, uh people are probably curious. Let's just spend a couple minutes on it.

On amc, amc took a major double digit crash today and even as gme is seeing some uh some turbulence, some major mucho uh rises and rips as followed by some significant dips as well. Currently, it is sitting at three and a half percent up after hours uh, whereas amc is just chilling at roughly zero percent, not really moving guys what happened to amc in your opinion today and uh, and so that we can cover this briefly before coming back to Gme uh, like i said yesterday, i think it's that uh fact of gamestop taking the pedestal for today and all the the news and headlines i mean you know really. At the end of the day, you have the same investor base going into either one of these stocks and really, although they're not correlated by any means that you know that correlation through wall street bets. If you will, um is going to be the driving factor and the terms that the investors going into both these are going to be in the same class, and most of them are going to be diversified between the two of these.

So i think that's really the case now a question for you: what do you think um, so we talked about the net delta on gamestop being 52 to 56 dollars uh by friday. What do you think that correlates with amc in terms of that? Do you think that the amc the gme beta is uh going to continue, or do you think that uh amc diverges away and gamestop takes a show or drops uh below? What do you think? Do you think amc? You know if let's say gamestop goes up 50. Do you think amc uh rides, so we've talked about jmu and amc writing tandem for a while. We've also talked about beta both on this show and with matt, but in case you guys don't know.

Beta is the idea that uh there's a correlation right either negative, positive or zero between one stock and the rest of the market, and one of the uh surprising reports that came out end of february was that gamestop had a somewhere between negative two and some reports Are saying negative, eight beta, which means that not only is it way more volatile than the market itself, uh based on the absolute value so up to two to eight twice to eight times as uh volatile relatively speaking, but it is also inverse of the market. We also pointed to the fact that that was because gme had an outlier of sixteen hundred percent up on the uh january gamma squeeze. So as a reminder that is uh one of the outliers that could have easily skewed all the rest of the results because uh the market was barely moving at that time. So obviously, that negative movement compared to the fact that gme is still up uh close to 900, while the market is still trading up, maybe seven percent since uh your beginning.

So that is something to consider. When people have been telling you a dead cat is uh on your doorstep. Look at uh closing price week over week over week, amc and gme are rising, while the market is staying stagnant. Now, whether or not those two are going to stay continuing in tandem.

Well, right now, we've been saying how gme's earning report call should be able to lift amc as well. That has not been the case, which is exactly why i've been asking uh. What do you guys think about that? Personally, i am now starting to feel the suspicion that amc is kept where it is by different people than uh the people manipulating gma's stuff matt. What are you thinking um? I guess i have a couple of thoughts on that, and actually i guess before we get too deep into my answer.

I'm just kind of curious uh belmont, like i've, had these conversations with trey max and andrew. I'm just curious your thoughts like right now, if you could only pick one gamestop or amc, which one would you pick, and i guess you could answer that. However, you want, like short term medium term long term but uh which, like i guess, which one do you feel like. I quote unquote the best about um well on a long-term basis, amc for sure for a short squeeze or gamma squeeze for the end of this week.

Gamestop for sure, the reason i would choose amc is that you don't have the sec regulations coming on amc, because uh, the beta factor on its jumps or drops amc doesn't get halted. So if you're not halted, that could either be really good for you or really bad, but i'd rather be able to trade. My stock be able to sell my stock. So that's the reason i would be, and i actually am have a larger position within amc opposed to gme, but as far as this week, gamestop is really going to take the show, because it's going to be in the news titles everywhere, whatever it may be, gamestop Is going to take the volume going to take the volatility so yeah this week, gamestop long term amc amc has a higher options, volume as well uh relatively so it's going to have a higher chance for a gamma squeeze interesting.

I like that um and then i guess coming back to yours, andrew i. I guess i'm just digging into this, because i had a good discussion with my live stream today. I feel like a lot of us within the reddit and youtube and really any form of social media. Talking about these stocks, i feel like we are using the word.

Manipulation like a crazy, crazy amount, and i'm just curious like for either of you, belmont or um. Andrew here um what uh? How are you actually defining manipulation because, like for example, i think we're all seeing like the cellar walls on amc and like on my chat, we hear a lot a lot of like oh manipulation and then uh. It seems to be more focused on a small amount of shares, just being sold like it's always like, whatever i've seen pictures on twitter of like 22 being bought, 22 being sold and it's a small amount of shares bouncing back and forth um. So i guess is that how you're defining it, because i just feel like we use it so much, and i just want our little worlds of social media to like better understand what we're specifically talking about.

I just came back from the little astronauts room. So is this question directed towards me either of you i'll? Take it um, so you're talking about the short ladder attack short selling walls, whatever it may be manipulation! Well, it's true. Um hedge funds have the power to do that because they have capital. So that's what drives the market - and you know like we talked about yesterday with andrew a lot of these hedge funds.

If you actually look in the history of them a lot of the um owners, if you will the um ceos of the hedge fund, whatever it may be, um they all work together at some point, so they can all have easy correlation to each other. So they can really group together and uh perform these now. Are they each and every day? You know, i think that we are like you, said, kind of overusing the term, because every each and every day that we uh take a negative day. It's always that seems to be the excuse, so i think it's more or less just um shorts, overpowering, the um, the bulls and we're not getting enough buyers.

We have too many people holding and then you see a large uh, any kind of influx in short sellers or buyers of puts, and you know the stock tanks a little bit and then it's that snowball effect again going back to that kind of paper-handed. Um weak minded investors not on that long-term basis, just kind of getting scared. They see a you know, 50 drop in their portfolio because of amc, so they get out of it whatever it may be. So i think that's the real concern now.

Yes, of course, there's been times when uh this thing has been um manipulated most likely now. Are we ever gon na prove it? No is there anything, that's ever going to be done about it? No, so that's there's a reason that if you look up the definition of a hedge fund, no one really knows what it is, because no one really knows what they do and we're never going to know. Because that's the way they want it and that's why they are the way they are. That's my perspective, at least what about you andrew? What are your thoughts on like when i'm sure you see it in your live streams as well, just like calling and manipulation so like with your chat like what are you identifying as like specific manipulation? So there is well, first of all, uh.

We have talked about spoofing talk about layering about short ladder attacks. We talked about just regular massive short attacks. We've talked about the uh conversions, which is uh one of the more tricky parts of being able to get over the ssr list at times. And finally, we've talked about more sinister tactics such as uh, spreading fear, uncertainty and doubt one of the easiest ways to be able to control the masses is to make it feel like that.

The fight is already over. So that is one uh three of not three, but i guess that's just a short list, pun intended of how the stock has been hurt in the past uh now, that is to say which of these can be considered, manipulation well, uh naked shorting is manipulation if It's done maliciously. This is just defined by law right. If we can talk about how there is the uh, the very illegal action of spoofing and layering right, these are uh trying to take these empty call options and pile them on with algorithmic trading and essentially take uh.

Take the air out of a stock trying to rise above a certain number fourteen dollars was the number amc was trying to reach during quadruple witching day. This is just one level of obvious manipulation, so in this sense, like belmont said it may be pessimistic to think that they won't get away with it, because for the first time ever, we are focusing up on a brand new type of trader right. Just like the the dd writer on trade podcast said we are no longer bulls, we are no longer bears, we are apes, we are buying and holding as far as as long as it takes. I like that, no longer bearish bills, just apes, that's funny there.

You go, i'm gon na bring meatball back up here. We are just five minutes away hold on. Yes, four minutes away from the earnings call right here: um we are going to try and keep commentary to a minimum. However, the two of us uh, the three of us well four of us now that meatballs here uh just jump in whenever you think that that was an important note, so that i can either drop a flag there or try and back up to make sure that We have the opportunity to talk about that over 12 000 of you.

You guys know what it is uh this is. This is now my most populated live stream. So once again, this is the sub counter, for this show it is live uh. Every day we go buzzer to buzzer bell to bell talking about the market, not just the meme stocks, but the opportunities to make passive income to make sure that you are achieving your financial freedom and the opportunities like these, the the ones that will be restricted in The future, by ttcc rules and by new regulations.

So if you guys are trying to uh map out your trajectory in the financial world and hitting that subscribe button and getting this 70 000 subs is a great choice, and that is a further as a further bonus. We are uh looking at people with their pledges, buying two thousand dollars a gm and fifteen hundred dollars at amc if they get to a certain point uh, and that is something that win-win benefits: everybody uh everybody also pay attention to math cores and belmont capital. Their titles are, in the title of this, show itself so go ahead and show them some love check it out. We are uh financial youtubers, but we're spreading the love all over the place, matt and belmont capital.

Any last thoughts before the earnings call begins uh. If this drops below 170, this earnings call better be amazing yeah. If it's not, it's not an amazing earnings call, and this drops below 170. uh, tomorrow's not going to be too hot for the for the bulls and it's already not looking too hot right now and matt any thoughts.

No, i'm just watching the chart myself right now. Uh for me, so i'm on the call myself should i just drop it, because we only need one audio for the call. I think you're, the only one with it. If you are on the call, i already have it pulled up, but you can drive with that.

If you would like uh, that's all right, i think yours is going to be a bit better. My computer doesn't seem to be um the best here. So let's do the call through your audio and i'll just stream. That sounds good to me.

Uh, i wouldn't drop the call just in case uh. Certain shenanigans happen. Okay, so i would just meet first all right. Um my mods are are in the chat.

We are friends. We are positive. Almost 13 000 of you get that subscribe button. A smash and we're gon na be shutting up very soon, as ryan cohen and friends of the gme uh questions and answers are going to be all over the place.

Will gamestop uh start thinking about esports and invest in super league gaming? Will gamestop start focusing on vr and take the brick and mortar to the next level with a brand new e-commerce makeover? Will this skyrocket the price right now it was up to 200 aftermarket. It is now down 15 in after hours down up to 167. that may be attributed to the fact that there was a minor miss in the earnings. Uh final thoughts on that.

Why they're not missing there they're, not uh muting, their music, so uh, we'll just hop on here, but uh uh matt, the belmont was talking about if gamestop pushes below 170, it has already happened uh. What are your feelings right before we start uh? I mean just right now: it's i don't know some whatever shenanigans, let's see how this goes, i mean this. Could i mean it hit 198, like there's just big volatility right now, it's low volume, it's easy to get bullied around, i'm just more curious, like the first. Whatever 20 minutes are gon na be like we had this earnings like they're just going to report, boring numbers, i'm more interested in the commentary afterwards, any big announcements and the questions from the analysts.

Okay, setting up everyone, give me some scissors in the chat. If that audio sounds good, you should be listening to some classical music right now. Here we go greetings and welcome to the gamestop 4th quarter and fiscal 2020 earnings call at this time. All participants are in a list and only mode if anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host eric sterny investor relations. Thank you, mr cerney. You may be good, thank you and welcome to gamestop's fourth quarter in fiscal 2020 earnings conference call.

This call will include forward-looking statements which are subject to various risks and uncertainties that could cause actual results to differ materially from expectation. Any such statements should be considered in conjunction with the cautionary statements in the safe harbor statement in the earnings release and risk factors discussed in reports filed with the sec. It's a little quiet on my side, no obligation to update any of these forward-looking statements or information. A reconciliation and other information regarding non-gaap financial measures discussed on the call can be found in the earnings release issued earlier today, as well as the investors section of our website.

Joining me today is gamestop's chief executive officer, george sherman, on today's call. George will share insights into our business and strategic framework for the future, followed by a review of the financial results and strategic direction as we head into fiscal 2021., please note to not be conducting a q a session as part of today's call. Now i would like to turn the call over to the company's chief executive officer, george sherman, good afternoon, everyone and thank you for joining us today before reviewing our results. I'd like to take this opportunity to personally thank our entire gamestop team for all that it has accomplished over the past year throughout the year we worked incredibly hard to meet our customers needs whenever, however, and where, wherever they chose to shop, missed the pandemic.

Impacted backdrop, i'm so grateful for our team's dedication to our customers and our brand fiscal 2020 was an unprecedented time. Our full year results reflect our organization's adaptiveness and focus on navigating the various operating challenges presented by the pandemic. I am particularly proud of how our team members met the expectations of our customers by greeting them during curbside pickups packing orders that ship from stores assisting with online orders and offering advice to customers in store during this time. Our top priority was safeguarding the health and well-being of our associates, customers and communities.

As you recall, we closed the majority of our global fleet during the height of the pandemic, resulting in a significant reduction of operating days compared to 2019., when stores were allowed to reopen. We operated under limited hours and at reduced capacity in many locations and in several of our operating countries, returned to full store closure protocols later in the year. During this time, we work diligently to plan for safe reopenings and introduce more members of gamestop's lower customer base to our e-commerce capabilities. In terms of operational initiatives, we accomplished the following: in fiscal 2020., we delivered 191 increase in global ecommerce sales to represent approximately 29 of total net sales, up from a low single digit percentage historically and reflecting investments during the year that enhance their e-commerce capabilities.

This growth allowed us to recapture a substantial majority of our sales from temporary government, mandated store, closings and leveraged our improved fulfillment capabilities, including the initial rollout of same-day delivery and several flexible payment options which help to facilitate sales and improve the shopping and delivery experience deliver Over 400 million over 400 million dollar reduction in our reported year-over-year sga expenses as a result of ongoing, cost optimization efforts. This combined with an sga reduction of 130 million in 2019 adjusted for severance and transformation costs, has resulted in a total sga decline of over 530 million dollars over the last two years. We continue to transform our physical store presence through ongoing market optimization and global de-densification efforts. This resulted in closing a net 693 stores and reduced store operating costs for the year, while transferring some of the sales online into neighboring locations.

We enhanced our financial position and flexibility with a stronger balance sheet, reflecting significant improvements in inventory management and related working capital, the healthy overall cash and liquidity position, a material reduction in overall debt in the completion of an exchange offer for our march 2021 notes. Overall, we're pleased with the work we accomplished to achieve our objectives and stabilize and strengthen our business operations. That work will continue, particularly as we explore options for our european businesses, which may include further store, closings exiting unprofitable businesses or investing in e-commerce capabilities. As we go forward, we are focused on transforming into a customer obsessed technology company that delights gamers.

We are working to create a differentiated customer experience that positions us to access new customers further engage with existing ones and reactivate former ones. We are maintaining an intense focus on initiatives that drive customer lifetime value steps we are taking to execute on this mission include one investing in technology capabilities, including by in-sourcing talent, revamping systems and evaluating next generation assets. We continue to build out our team expertise in this area, noting our recent addition of a chief technology officer and chief operating officer to the senior leadership team, two building superior customers customer experience, including establishing a us-based customer care operation. We are focused on providing exceptional customer service levels across all channels, regardless of where, when or how our customers shop with us.

We are accomplishing this with technology driven approach, along with leveraging our streamlined retail footprint to provide an unparalleled service proposition, with a focus on surprising and delighting our customers. To this end, we have recently added a senior vice president level, head of customer care and other new additions with e-commerce backgrounds to the senior leadership team. Three expanding our product offerings. We are continuing the work to expand our addressable market by growing gamestop's product catalog.

This includes growing our product offerings across pc gaming, computers, monitors, game tables, mobile gaming and gaming tvs to name only a few. These categories represent natural extensions that our customers would expect to buy from us. Expanding our addressable market size by over five times and over time will reduce our reliance on the cyclicality of the console-based gaming market. Four modernizing u.s fulfillment operations to improve speed of delivery and service.

We are improving our distribution network to coincide with the continued of our store footprint. This will enable us to provide customers convenient, flexible and competitive delivery options across the entire product spectrum. With our recent additions to the c team, we are quickly evaluating additional distribution options to improve delivery speed. This group is also working to further optimize our warehouse management and order management, technologies and other capabilities that will improve the experience for our customers.

We expect to accelerate these and other elements of our transformation, while continuing to focus on allowing the company to build upon its progress and capitalize on the emerging console cycle. The progress we've made over the past two years: positions gamestop for long-term growth and to deliver value for shareholders. Now, turning to financial results, i'm very pleased with how we navigated a challenging environment and all that we achieved in the fourth quarter in fiscal 2020. specific to our fourth quarter.

Results bills were 2.1 billion dollars and comp sales, increased 6.5 supported by mid-teens positive, comparable sales to fiscal january, global ecommerce sales, increased 175 percent and represented 34 of total sales in the fourth quarter versus 12 percent of net sales in the prior year period. These results were reflective of the increased console demand as we transition from generation 8 to generation, 9 console gaming products from microsoft and sony our 6.5 comp growth marks our return to positive, quarterly comp sales growth, which we achieved despite further proven 19 mandated closures around the World, particularly in europe, the most challenging industry-wide shipping crisis realized during the holiday period and severe supply limitations of new products, notably muscle demand, remains more robust than we can meet with supply from console makers and, as a result, we continue to see sell through rates. For our conscious events, in a matter of minutes in the fourth quarter, we estimate that additional pandemic-related store closures mandated by local governments led to reduction of approximately 27 percent in european store operating days versus the prior year. Fourth quarter: regionally: australia was the strongest performing region.

Given minimal disruption into stores and delivered a nearly 30 percent comp increase building on that momentum, 2021 is off to a great start, led by positive 23, comparable sales in february, as we continue to benefit from the launch of new consoles and the accessories and games that Come with that product, further total consolidated sales for february were up 5.3 versus last year, despite having permanently closed about 12 percent of stores globally through deductification efforts and losing over 36 percent of store operating days in our international business units, primarily in europe due to pandemic Related temporary closures in the month from a product margin standpoint overall gross margins were 21.1 percent down 610 basis points from our more software-led 27.2 gross margin in the fiscal fourth. Fourth quarter, last year decline was driven by an expected increase in mix of lower margin. Hardware: sales, a continued increase in industry-wide freight costs, credit card processing fees driven by our higher penetration of e-commerce sales and a broader promotional stance. Now, turning to our expenses and expense management objectives, our reported sga expenses were 419.1 million, reflecting a decline of approximately 92.6 million dollars or 18.1 percent versus reported sga in the fourth quarter last year and representing approximately 340 basis, point improvement on a percent to sales basis.

The decrease was driven by a combination of tight expense controls, particularly lower store costs and corporate g, a expense to a lesser extent, sales leverage on an adjusted basis, sg a declined, 68.4 million or 14.1 percent year-over-year. We reported operating income of 18.8 million on a reported basis compared to operating income of 75.2 million in the prior year. Fourth quarter: adjusted operating income was 28.9 million compared to 109.2 million in the prior year period. Income tax in the fourth quarter was a benefit of 69.7 million, driven by a change in the tax status of certain foreign entities, based on a certain check.

The box elections that we made, along with the impact of the cares act which allowed for a five-year carry-back period for certain current year tax losses. This tax benefit compares to an income tax expense of 43.8 million dollars in the prior year. Fourth quarter on a reported basis that income was 80.5 million dollars or a dollar 19 per diluted share on 67.8 billion shares compared to net income of 21 million dollars for earnings per diluted share of 32 cents in the prior year. Fourth quarter adjusted net income was 90.7 billion dollars or a dollar 34 for diluted share compared to adjusted net income of 83.8 million or a dollar 27 per diluted share in the fiscal 19 uh.

Fourth quarter in the fourth quarter. We continue to focus on de-densifying and streamlining our global store fleet. We closed the net total of 232 stores in the quarter for a total of 693 closures in fiscal 2020.. At year end we operated 4816 global stores.

Now, turning to our full year results, total consolidated sales were 5.1 billion dollars, a decline of 21.3 percent over the prior year. The sales decline was attributed to a comp store sales decline of 9.5, approximately 700 permanent global store closures, disruption from the pandemic around the world, including temporary store closures, vendor supply shortages in the new generation 9 hardware and a lack of new product at the end of The generate generation 8 cycle e-commerce sales, increased 191 percent for the fiscal year to represent nearly 30 percent of total net sales. Gross margin for the fiscal year decreased 480 basis points to 24.7 percent from 29.5 in 2019.. Sg, a expenses for the fiscal year were 1.5 billion dollars, reflecting a decline of 408.5 million or 21.2 percent versus reported sgna in fiscal 2019.

on an adjusted basis, sga declined 348.9 million or 18.9 percent year-over-year importantly, these expenses include approximately 25 million dollars in covert related Safety protocol costs, as we said before, we continue to expect more than two-thirds of these reductions to be permanent as they relate to permanent closures of stores and related labor costs associated with our dedensification strategy. We reported an operating loss of 237.8 million dollars compared to an operating loss of 399.6 billion dollars. In the prior year, adjusted operating loss was 238 million compared to operating income of 62.3 million in the prior year. Income tax for the year was a benefit of 55.3 million, driven by the changes in tax status of certain foreign entities and the impact of certain carryback provisions of the cares act previously mentioned.

This tax benefit compares to an income tax expense of 37.6 million in the prior year. Our effective tax rate for the year was 18.9 percent. Importantly, we believe these tax elections will yield between 125 and 150 million dollars in cash tax benefit to to be received early. Next fiscal year on a reported basis, our net loss was 215.3 million dollars for a loss of 3.31 cents per diluted share compared to a net loss of 470.9 million or a loss per dollar share of 5.38.

In the priory, our adjusted net loss was 138.8 million or a loss of two dollars and fourteen cents per share compared to adjusted net income of 19.1 million or 22 cents per diluted share in fiscal 2019.. According to the balance sheet, at the end of the fiscal year, we had cash and restricted cash of 635 million dollars, 121.5 million higher than the end of last year, reflecting our continued efforts to operate optimize working capital and overall capitalization of our balance sheet. We ended the year with total inventory of six hundred and two point: five billion: a thirty percent reduction from prior year inventory levels of 859.7 million. As a result of our ongoing inventory management efforts, our inventory efficiency continued to improve the fourth quarter, as we realized a trailing 12-month inventory turn of 5.9 times versus 4.4 times at the end of 2019..

At the end of 2020, our balance sheet liquidity position were significantly improved versus 2019. Despite the impact of the pandemic. This was the result of actions we took to strengthen our financial health in 2020, including completion of an exchange offer and consent solicitation for 216.4 million dollars over unsecured notes, reducing the amount due to mature in 2021 execution of five sale lease backed transactions related to office Buildings and the sale of a corporate travel asset contributing approximately 95 million dollars towards total liquidity and the reduction of overall debt for the year by 57 million dollars, including the early redemption of 125 million dollars of our remaining march 2021 notes. Additionally, as of march 15 2021, we fully redeemed the remaining 73.2 million dollars of 2021 notes and repaid the outstanding balance of 25 million dollars on our abl capital.

Expenditures for the year were 60 million dollars at the low end of our previously provided guidance of 60. To 65 million in fiscal 2020, cash flow from operating activities was an inflow of 123.7 million dollars, an increase of 538.2 million compared to an outflow of 414.5 million during the same period last year, the increase was primarily due to improvements in working capital. As a result of optimizing inventory and accounts payable levels through maximizing the cash conversion cycle and more efficient carrying levels of inventory, in terms of our outlook, we're optimistic about our transformation in the emerging council cycle, we recognize business risks remain elevated due to the pandemic and Post pandemic uncertainty, we are not providing specific annual sales and earnings guidance. In summary, 2020 was an unprecedented year, but we're very proud of all that we accomplished to advance our strategic priorities and enhance our financial health.

We finished 2020 a stronger company and are well positioned to capitalize on the opportunities ahead of us in 2021, as we move to the next phase of our transformation. Gamestop is the only retailer or scale exclusively focused on the gaming industry. In adjacent categories, we have a unique opportunity to become the ultimate destination for gamers. I want to take a moment to address several changes to our leadership team.

As you know, we announced in february that jim bell was stepping down from the cef cfo role with the company later this week. I want to thank him for a significant contribution to our company during the stabilization and optimization phases of our transformation, particularly his leadership in managing several hundred million dollars in expense reductions in over 350 million dollars in working capital generation. We also announced this week that frank hamlin, our chief customer officer, is leaving the company, and i'm very appreciative of his leadership and efforts over the last couple of years of our transformation specifically is spearheading the concept, development and execution of our tulsa project of interactive gaming Stores, finally, we are very excited to welcome jenna owens as our new chief operating officer. We believe jenna's extensive career and technology-led organizations such as amazon and google are another important addition to our leadership team and our future transformation initiatives.

Thank you again for your support and interest in gamestop. We remain very excited about the momentum. We have the many positive changes we are making in the talent we are attracting the gamestop, all of which we believe will deliver long-term value creation for our stakeholders. This concludes today's conference.

You may disconnect your lines at this time. Thank you for your participation. I have a wonderful evening. Oh no questions yeah.

They said no questions unanswered. No questions, no cohen! What's going on here? Okay, what do you think andrew um? I am. I am good. I had some scotch in the middle of that situ of that whole shebang.

Uh people are saying scotch to the moon. It seems like that is uh. It's essentially a a bull run, bullish version of that uh. The paper version of that earnings report.

Personally, in my opinion, i know i can't wait for what matt has to say it seems like they have talked about moving into uh specific spaces that we've been expecting them to move into. I didn't hear too much about uh ideas of acquisitions into esports. That was what we were bullish on that definitely wasn't uh any ryan cohen in there, but uh don't go anywhere. Those of you who are still watching.

We still have a lot to break down matt. What are your thoughts? Yeah? I mean the snacks. The stock isn't reacting that well, it's uh pushing 170 right now, um, they didn't say anything about acquisitions. They didn't say anything about like really everything.

They said it's already out there like. They literally just reiterated the report that was already put out. Um, we knew about 2.1 billion in sales for the quarter 5.1. Overall we knew is about.

I don't know: 20 25 drop um. I guess the only thing uh belmont like that, i'm sure you're excited about is the e-commerce scale. Sales are through the roof. 191 percent.

On the quarter 170 or no sorry, 175 percent increase on the quarter and 191 increase on the year, so they're now killing it on e-commerce um. But as you can, as i'm literally speaking right now, you can tell um. I don't know it's drop 162.. So people that we were holding out for a fun new, exciting announcement and nothing's happening and as we're filming this gamestop is being hit game stuff is getting down double digits right now, 11 pushing on 12 down at 160.

yeah. I think the uh earnings call was good. I think that that's exactly the business that they need to make into the transition is that uh selling their stores getting out of those stores getting out of those brick-and-mortar locations and going into e-commerce. Because that's the that's going to be the future, and that is the future.

We've already seen it and obviously getting a ceo or a ceo from uh, amazon and prior work at google is a great acquisition as well. Also, i like the fact that they sold their private jet. I thought that was kind of funny um. He sold.

He said that they sold their uh private transportation asset, so they sold their private jet, which is kind of funny um, but nevertheless, uh ernie's call was good. I think uh there's a few more things that i would like to see in terms of, i think really. The reason that we're dropping right now is zero guidance, but that's as expected. Right now, no one known companies giving guidance to dekovid uh and you know the outlook is we don't have any so no company's doing that.

That's probably why it's dropping right now and obviously, due to the fact that we didn't get any kind of headlining news. No headlining to be no yeah, nothing to nothing to drive it forward. If you will personally, i feel like this was so one of the theories that has been permeating the space since last week was the idea of plausible deniability. If there were long whales waiting for their shot, putting us on the ssr putting on a short still restriction list, um pumping up the stock, putting a bunch of new call options on the option chain just to have that plausible deniability of it.

Squeezing this week leading up to 26 and having it due to a bullish, uh earnings report and call now that seems like it is no longer on the table unless uh we are missing something. What do you guys think i'll? Let you take that first belmont, i'm just trying to like get some of my thoughts together here with my notes. Yeah. That idea is uh.

We are hedge funds, fighting hedge funds, right infighting right now. There are long unknown institutions that have been putting gamestop uh on the ssr list right doing things to gamestop that individual investors would just have a really hard time doing themselves. So we have been under the suspicion that we're going to capitalize on today's events and is that still on the table? Well, i think that right now, you're uh, hitting that that level where i think that next level sport comes in at 151, really the bottom. So if we hit that here in after hours, we could see a big buy-in uh from the bulls but like you said, i don't think we we don't have that uh future outlook.

If you will that short-term future outlook, you know, maybe this will pop on earnings. Maybe this will do this and that uh we just don't have that that set thing to have right now, so the only thing to fall back on is that opportunity with the short squeeze and gamma squeeze, but as we fall uh further here that that opportunity seems To be dripping away, you know it's still out there. It's still there, but we're gon na have to get to a higher price target in order to reach that in order to get a gamma squeeze or a short squeeze, but the only way that we lower that number that gamma squeezed line, if you will is if We get a ton of options coming in tomorrow, but i just don't think that that's the case uh you know so this could be that uh uh net delta of a 52 loss by friday and we're already seeing that you know we're already seeing 30 down from The close, which is um so we got 20 more dollars with the options market priced in on the bottom for tomorrow, probably maybe, if it doesn't hold that 151, it just held his support there so um just for my own notes. Uh, did they talk about the earnings per share on the call at all? I didn't get that um, not a broad view on a basis-to-basis view: yeah uh on their net losses and their net gains and net profits stuff like that earnings per share, but not on a broad view: oh okay, not on it the main thing which is 1.34.

I think thirty, four, that's what i was looking for. I didn't hear anything so i guess we had to do that. Math, ourselves, uh and then the sales was in line right, like 2.1 billion was what was it was expected and they hit that yeah. I think that i think that's a little short of expectations, but i mean at the end of the day, what are expectations when, like he was talking about a majority of their stores, were shut down and a lot of people aren't even going to him so again That transition to ecommerce is going to be huge because then you're you're in a more strategic business - and he talked about one of the lines that i like from him, is the fact that he talked about uh.

That they're gon na be that technology company opposed to a brick and mortar corporation talk about you, know, technology and being that technology company within the uh gaming industry, which is huge. I think that that puts them in a much different position than their historical business and their current business model yeah. I i'm getting this overwhelming feeling and i guess i need to dive into these numbers a little bit. I honestly think what was stated is great for the long term of gamestop as a company and as a stock, but i don't think it did any any justice for uh.

Any form of the squeeze is my like gut reaction. Yeah definitely yeah, and that is the tricky part. Sorry to cut you off, but that's the tricky part right is that we can have incremental growth. We can have you know, long-term prospects, but right now what people are looking for was a catalyst was what people are getting antsy for people who held all the way through uh getting bagged held at the top of the 200 plus 250 plus.

Like me, back in february, early february and late january, and now they are holding all the way through february waiting for this earnings call. People have a right to be frustrated, but the most important thing look at us: uh space apes. Look at us moon gain, i'm not sure what uh fan you got. A fan base is called over in belmont, but uh moon, platoon.

Look at us. We are still holding our shares right. We are not selling and it's not a recommendation to any of you to do whatever you don't want to do. But personally, for me, i am seeing this all the way through, and this is not even a bearish sign.

This is just a mismatch of expectation and expectations. Are the thief of joy uh talk to any marriage, so um, i'm gon na ask back to matt matt. Have you collected your thoughts? People are requesting that we collect our thoughts a little more. So it's totally okay.

If you haven't yet collected your thoughts yet i mean, i don't know like, i would say just it's bearish from the obvious fact that we closed out 180, 175 and right now we're trading at 157. So to re, reiterate belmont. He is like he's right in the fact that, like we're pricing in a 52 move uh a 50 plus dollar move. So if you believe the options market and a lot of times that big money is not wrong.

They're calling for 1 30 tomorrow, and i i think with it, there's a chance that it could bring in a psychological fact of all these people who thought that they were diamond handed. They might see that red and be like never mind. I'm gon na have some paper hands in this situation. Um.

I think a lot of people in the retail market right now are trying to talk the talk and i'm curious tomorrow to see if they're gon na walk the walk, so we're gon na get scissors in the chat for those paper hands on my chat in belmont's Chat in matt's chat scissors in the chat, because, once again in the higher grander scheme of things, when that precious element comes back around at higher and higher levels, we don't want them to mess up the pool and right now, if you've been diamond handing from the Beginning there is a case to be made that you are still in the company of once again. Our streams are never this crowded, 14 000 people right 14, 000 people combined with all of us, 20 000 plus - that is the group of space apes that has embarked on this journey along with you. So the calming voice of reason is once again. This is only bearish based on your expectations.

Uh, we had a a strong expectation that this was going to be a catalyst right. We had a strong invitation that this was going to be able to uh bring us to the moon as of right. Now, the only thing that's changed is that that opportunity may not be there anymore, not saying that there is not going to be more opportunities and catalysts in the future matt. Why uh we talked about people moving contracts into the 130 ranges.

What about some? Where did you see that and uh? What are you feeling for gme tomorrow, specifically uh? No, no, no! They they weren't moving it in uh. That was like, basically with the options market, like all the the volatility was reading. Was that move it wasn't like they specifically loaded up on 130s, it was basically calculated yeah, it's calculated across the volume based on all strike prices and the majority of the strike prices are either at. So it's a 56 net delta, which means majority of the strike prices on the bull side are either what would have been at 230 or they're at 145.

130 in that range on the bear side. So that's the net delta that was priced in prior to close day and options markets closed after hours. So i think that's an interesting thing that we'll have to look at tomorrow in the open is where those options volume come in. If it comes in, you know a lot of puts coming in or if there's a lot of calls coming in trying to buy the dip on the options going into friday.

I think that the expiration on the 26th is going to be a key strike to look at in terms of that, so we'll see um, but i would assume the majority of the puts are going to sell, which could be a catalyst to drive this thing up To the upside tomorrow, definitely i'm i'm curious to see, like you said, i think, we'll know by about 10 30 eastern and an hour into the market of uh. If this is going to cause panic and push the snowball down in a bad way, or if people are just going to view it as a dip buying opportunity, it'll be interesting to see where all the money is like kind of placing itself. Well, i think a lot of people are going to look at it as a dip buying opportunity, because it is, i mean, 151 coming off. A 348 high is a pretty low valuation in terms of the short-term outlook.

So i think a lot of people are going to see it as a buying opportunity and again the puts so i mean on a 50 what we're down 30 dollars from the close and a majority of people probably got in on puts this week. So i would say, majority of those puts are going to be up in the if they got short term puts they're going to be up 50 to 60, maybe 70 on those puts so a lot of them are gon na have no option, but to sell i Mean if they didn't sell um, obviously they could probably inch out a little bit more. Maybe, but if a majority of those puts sell, then you're going to stay you're going to take off that short selling pressure at the open. And if you get it, you know the same amount on the long side with bulls coming in and seeing this as a dip opportunity.

Then tomorrow could be really good for this and we could really return back up in that 180 to 190 range by tomorrow. Very possibly interesting, yeah. I'm definitely curious to know the psychology of it of like right out of the gate, because it's like, if the first person to hit that buy back button, that's going to put pressure on other people to buy back so really out of the gate if you're. Obviously, theoretically, anything could happen but um.

As of now i like that thesis of, like maybe just ripping out of the gate. We see four minutes ago that deep effing valley, that's right. Roaring kitty did update on reddit of his yolo update here. He is still holding on to those hundred thousand shares right now, uh as of four minutes ago, holding tight as the general of the storm uh, speaking of which he was the one.

So, first of all, i'm gon na put that up there uh steve was the one that said that 40 was attractive. He was also the one posting all day on twitter today, specifically looking at uh, one of his last tweets was had the intention of like doubling down i'm going to pull up real briefly here. What are you your opinions on the attractiveness of the price right now? You don't have to. If you have no size, you don't have to uh bring it here.

Yeah leroy jenkins was his last tweet, so that had the intentionality of either doubling down or getting into a fight uh with uh, with both with high bullishness. What are the two of your opinions on the attractant just of the current price of gamestop, a good way, matt yeah, i mean i just think from like a technical perspective, all the the rsi is so obviously, if you're looking at the 50 minute 30 minute four Hour, it's so obviously in the oversold territory. So, just for, like a realistic like reversion play, i mean i i'm sure we have to be like a multi-sigma move out of um like the bottom end out of like a keltner channel or something so i think it's just a realistic like even if people were Looking for a day trade or a swing trade, i mean just like a rubber band, we're just like so overextended in one way, obviously to the downside so uh, not if i weren't, knowing that this was gamestop or anything about the short squeeze saga. If i just saw this as a chart, i would say it's a good reversion play, especially at the psychological level of 150..

I i totally agree. I think that well, the numbers don't lie. Rsi is the lowest number we've seen since uh looks like november of last year, so in the in the secondary squeeze or even in the squeeze in general uh. This lowest we've seen it in terms of um rsi and then macd.

Take a look at that as well. It's extremely overextended i mean it went from you know. Just the other day, we were up at almost seven now we're down to almost negative seven on those um indicators, so it's pretty crazy yeah. This is this is currently uh.

14 down, it is hovering on 156, the lowest it got earlier was 151 like, like belmont and matt, said bounced off of that psychological level and is currently hovering at 156 still uh. I am. I am curious about the the overall prospects of what you guys think is this an attractive price drop scissors in the chat, if you agree just your opinion, of course, we're not trying to sway anyone's financial decision right now. Neither should anybody in the chat right now we're talking about our opinions, bullishness or bearishness, and you have to make sure that you can do your own research, speaking of which, what should they be looking at early tomorrow, we talked about an hour into the market, so Maybe just one hour into 10 30 eastern uh at that point, matt uh.

What should they be looking at and how will they know whether or not people are still panic? I mean i'm just uh, i mean the best thing we could do is just play. The important price level see what's going on in the options market see if people are loading up on calls puts just i'm curious if they're going to unload their position in terms of technicals, i have a little bit basically the region of 140 to 160 there's, like Scattered support throughout that um i would have deep concerns if we somehow break below 140. um. I think that could cause some serious capitulation, but i i mean just looking at the rsi like i said man.

If i, if i just didn't know this was gamestop i'd be like this is coming up on support it's about ten dollars away, twenty dollars away like just somewhere in that region, uh coming off of the earnings i mean, i don't know, i think, there's a realistic Reversion play in here, not even in terms of a squeeze at all, it's just of like hey it's over extended one way. I think i could make a decent percentage on the pop back yeah. I think that's a good point to bring up, because that's gon na be a key indicator for tomorrow is that a lot of people are gon na see it that way, and a lot of people are going to play it that way and they're going to play This as a scalp trade as a swing trade, so you're going to have a ton of volatility coming in tomorrow, so any kind of pop-up is going to come straight down very quickly because i think you've, like i talked about earlier. We wanted that long-term perspective to come in, but now with this dropper at such a low level that everybody's going to take this as a scout play and as soon as they get.

You know 10 20 on their options, they're going to pull out very quickly and drive the market down, and then every which way of that. I think we'll run into probably about 168 at the close of after hours here and probably run prior to the opening bell of american exchange pre-market, which is going to be 7 8. 4 a.m, pacific so 7 a.m. Eastern, we'll probably take a quick off with that.

When uh american traders open up on pre-market a quick sell-off and then what we look for on gamestop each and every morning is a dip at the open. You have a lot of sellers that come in at the open dip it down and from there. I think we're going to get a heavy buy-in from there. You know either those puts are going to cover - or i should set should say, sell right at the open or they're going to see that minor decrease in the stock price and they're going to see.

You know a lot more gains and coming into that, so i think you'll have a lot of puts, get out of it and could potentially go back up into that 175 to 180. After that and then again going to be a shaky day tomorrow, with the not only options but the stock in general. So once again we are being supported at around 160 and change, maybe 155 or so. But that was a position of consolidation.

We have now risen. Just a small bit up to 161 after trying uh during that conversation of belmont's thing, it's going to go up. Uh, probably end around 168. now to verify.

Is that for after hours or what do you think is going to happen pre-market when market actually uh opens tomorrow morning, so basically to outline it exactly um when we open pre-market so there's charting and there's trading prior to american exchange opening so prior to that 7 A.M - eastern mark prior to that 4 a.m. Pacific mark there's going to be trading prior to that and i think we'll run up within that time frame and when american exchange is open and you can start pre-market trading except for robin hood because again, robin hood yeah. Whatever um so except for robin hood uh, you know we'll see a quick sell-off because, as we see each and every day with volatility, we start with amc on that initial. When we got that initial secondary run-up, you know when american exchange is open in pre-market.

We see a quick sell-off just due to profit taking because people saw that overnight gain and especially within that time frame when they're not allowed to trade um. So with that being said, i think we'll see us off within that run up into the open and probably be just below a that number that we saw prior to pre-market trading at the open and from the open, uh dropping down and getting a big buy-in from There, i think, is what we're going to see and that's usually what the pattern that happens within um active, volatile stocks uh within pre-market to opening hours, okay belmont on the kind of patterns that we should be seeing for the rest of after hours and into the.