Question
In the last week of January 2021, the retail investors in r/wallstreetbets pushed the price of GameStop (GME) by about 1600%. While most professional investors
In the last week of January 2021, the retail investors in r/wallstreetbets pushed the price of GameStop (GME) by about 1600%. While most professional investors indicated that there is no fundamental analysis behind this push, there are certain aspects that may justify part of this increase. Consider that GME will take the following strategicactions related to its operations: Close all its physical stores Create a new web site that would position it as the primarydestination for game exchanges and sales
Review the financial statements of the company and create a pro-forma financial statements for 2020 and 2021 taking the most optimistic assumptions in your analysis and extrapolating the profit of the company for future years.
Estimate a value for the stock based on the DCF method
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