GameStop, Adobe, and Domino’s CEO Ritch Allison
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 26 March 2021
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:07.0 | From full global headquarters, this is Motley Fool Money. |
| 0:10.0 | It's the Motley Fool Money radio show. I'm Chris Hill joining me this week. |
| 0:22.0 | Senior Analyst Jason Moser and Ron Gross. Good to see you as always, gentlemen. |
| 0:26.0 | Hey, hey, Chris. We've got the latest headlines from Wall Street. Domino CEO Rich Allison is our guest. |
| 0:32.0 | And as always, we've got a couple of stocks on our radar. |
| 0:35.0 | But we begin with the stock of the year so far. And that's GameStop. |
| 0:40.0 | The meme stock of 2021 issued its fourth quarter report on Wednesday. |
| 0:45.0 | And it was not pretty. Profits in revenue were lower than expected. |
| 0:49.0 | And GameStop's management refused to take any questions on its conference call. |
| 0:54.0 | At one point this week shares of GameStop had fallen 40%. |
| 0:59.0 | They rebounded to finish the week down only about 10%. |
| 1:03.0 | Ron, we've got the underlying business, the management, the stock itself. Where do you want to start? |
| 1:11.0 | You kind of nailed it, Chris. The volatility in this stock this week is laughable. |
| 1:17.0 | It shouldn't work this way. The stock market is more efficient than this stock would have you believe. |
| 1:23.0 | As you said, shares sold off sharply on worse than expected quarterly results, rebounded by the end of the week. |
| 1:30.0 | If we look at that quarter, and I'm going to try not to mention the word reddit more than once. |
| 1:34.0 | And that was the one time. So I'm going to do this story without that as a factor. |
| 1:40.0 | Let's look at the business. And that sales down 3%. That's on a 12% decrease in their store base. |
| 1:45.0 | And a reduction of about 27% of European store operating days. There are about 1000 stores at a 5,000 that are overseas. |
| 1:54.0 | Most folks might not realize that. Now this was offset by some strong demand for a new generation of game consoles that were recently introduced. |
| 2:03.0 | This kind of game console refreshed that people were looking for did did show some strong demand. |
... |
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