Davids Trindade🇵🇹

Wyckoff student 📗 Options 📈

[andrew engler @aerockrose]

Jeff Bezos explains the stock-is-not-company rule behind Amazon's $113 to $6 collapse.

"Our stock peaked somewhere around $113."

"Then after the internet bubble busted open, our stock went down to $6."

"It went from $113 to $6 in less than a year."

"My annual shareholder letter that year starts with a one word sentence."

"Ouch."

Then Bezos gives the rule most operators forget in a crash:

"The stock is not the company, and the company is not the stock."

While the outside price was collapsing, he was watching the inside machine:

"Number of customers."
"Profit per unit."
"Defects."
"Every single thing about the business was getting better and fast."

The useful idea: do not let the market's scoreboard replace your operating dashboard.

A price can scream panic while the business is quietly getting healthier.

- Jeff Bezos (@JeffBezos) on Bloomberg's The David Rubenstein Show

[Davids Trindade🇵🇹 @Davids58424262]

@Finishurbkfst23 @ReesePolitics

[Infiltrado Blanco @InfiltradoRM]

Messi en su 6to Mundial, nunca ha jugado contra;

Brazil 🇧🇷
Spain 🇪🇦
England 🏴󠁧󠁢󠁥󠁮󠁧󠁿
Uruguay 🇺🇾
Portugal 🇵🇹

Los únicos equipos grandes a los que se ha enfrentado ha sido Alemania (ha perdido siempre), Holanda y Francia. A ninguno le logro ganar en tiempo regular.

Ronaldo se ha enfrentado a todos.

Porque siguen protegiendo a Messi?

[Daniel Mayakovski @DaniMayakovski]

Mientras tanto, en EEUU, una abuela de 93 años, llamada Mary, que sigue trabajando en un cine AMC para pagar sus facturas, sin poderse jubilar, limpiando la basura que la gente deja atrás en las salas.

Este es el futuro del capitalismo, que trabajes hasta morir sin poder jubilarte para pagar las facturas de los seguros médicos privados.

[GameStop @gamestop]

GameStop reports highest quarterly net income in company history of $389.6 million. Highest first quarter operating income in GameStop’s history of $143.3 million. Net sales grew 14% year-over-year, driven by collectibles. Cash, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset of $9.7 billion.

https://t.co/BAu3T6V9w4

[𐌁𐌉Ᏽ 𐌕𐌉𐌌𐌉 @OrevaZSN]

If capitalism is so great, why do corporations need tax breaks, subsidies, exemptions, grants, bailouts, legal protections, and trade barriers to survive? And when ordinary people ask for help, why is it suddenly called socialism?

[Rueda @ruedaoj]

Catching $GME gain almost 10% economic exposure to $ebay in real time is kinda funny @ryancohen hasn’t even spent over 10mil yet holy shit does $GME 9bil war chest seem like a crazy weapon under the right hands of someone who is used to hostility in the financial system. 🏴‍☠️ , dudes fucking swing trading bitcoin , activist investing , kissing your mom good night, investing in T bills, made @powerpacks bring in millions and we still bitch cause we sit at $20 tbh it’s a fair bitch but holy fuck dude is working for free.

[Kim Dotcom @KimDotcom]

Our leaders are not representing us. They are hated. Their approval ratings are shocking. They lie to us and make empty promises. Better to have direct democracy. You decide on issues. No more politicians. No more political parties. People power and community notes for the media.

[Evan @daviddunn177]

Uneducated voters are more dangerous than illegal immigrants.

[Rushi @rushicrypto]

If capitalism is so great, why do corporations need so many tax breaks, subsidies, exemptions, grants, legal protections, bailouts, and trade protections?

When citizens need these things, why is it socialism?

[Hassan Mafi ‏ @thatdayin1992]

Anti capitalists realizing capitalism is doing so bad that the most powerful capitalists on the planet are visiting the Communist Party of China to beg for help with their economy

[bad robot ventures @foxenflask]

Prepare yourself for a proposition from $GME to increase the total authorized share count. I know that might make some of you uncomfortable, but hear me out because there's a very logical reason this is coming, and it's actually bullish. If you disagree or hate this idea, please give me the courtesy of reading my logic before you have a mid-life crisis in the comments.

Right now, GameStop has ~448m shares outstanding against 1bn authorized. That's a 44.8% issued-to-authorized ratio. Sounds like plenty of headroom, right? Not when you factor in what's already committed:

- 171.5m shares tied to RC's performance options
- ~43.5m shares from the $1.3Bbn convertible notes ($29.85 strike)
- ~77.8m shares from the $2.25bn convertible notes ($28.91 strike)

That alone brings the fully diluted count to ~741m, or 74% of the authorized ceiling. And that's before a single acquisition dollar gets raised.

So why would RC want to increase the limit now, while there's still room? Because good capital allocators do not wait until they are maxed out. They plan ahead, and there is clear precedent for this.

RC has shown you exactly how he thinks about this.

In January 2023, RC built a stake worth several hundred million dollars in Alibaba and personally pushed management to increase their buyback program from $40bn to $60bn. He told them they could hit double-digit sales growth and ~20% FCF growth over five years, but the shares were undervalued and the buyback was not aggressive enough. Alibaba listened and expanded the program.

He also invested the vast majority of his personal wealth into Apple after selling Chewy, becoming one of Apple's largest individual shareholders (roughly $800m plus at peak). When sources close to RC described his Alibaba thesis to Reuters and the Wall Street Journal, they specifically pointed to Apple's capital return program as the blueprint RC wanted Alibaba to follow. RC called Apple “the strongest business in the world” and cited “disciplined capital allocation” as a core investment principle he learned from Buffett. He bought his first Apple share at age 15.

The through-line here is pretty clear to me: RC is acutely aware of shareholder value mechanics, issued-to-authorized ratios, and capital discipline. He does not want to be forced into raises when his back is against the wall. He would rather have optionality.

Buffett operated the exact same way, and there is direct precedent here. Berkshire Hathaway has 1.65m Class A shares authorized but only roughly 523,000 outstanding. That is a 31.7% utilization rate, and Buffett has maintained that kind of headroom for decades. He did not do that because he planned to flood the market with stock, but because he wanted the flexibility to act when opportunity appeared without going back to shareholders for emergency approvals.

At the 1995 Berkshire annual meeting, when shareholders questioned whether authorizing preferred stock would dilute them, Buffett said: “There is no downside to this proposal. It is an authorization. It is not a command to issue shares.” He also explained that shareholders are only diluted if Berkshire receives less in value than it gives, and he repeated that principle in multiple letters and Q&A sessions over the years. In later commentary he went so far as to say he would “rather prep for a colonoscopy than issue Berkshire shares,” underscoring how seriously he treats actual issuance versus simple authorization. The lesson is simple: Buffett authorized far more shares than he ever used, kept massive headroom at all times, but was extremely disciplined about when and why he actually issued stock. That is the model RC appears to be following.

Now let's do the math on what $100bn plus actually requires.

RC has told us the plan: acquire a publicly traded consumer company “significantly larger” than GameStop. He has described it as “transformational” and said this has “never been done before in the history of capital markets.”

GameStop currently sits at roughly $11bn market cap with roughly $8.8bn in cash. To get to $100bn by 2036 (the 10 year horizon of his compensation plan), he is going to need significantly more capital than what is on the balance sheet today. My estimate: at least another $20bn in equity and debt capital over the next 3 to 5 years. And honestly, that might be conservative if the vision is $100bn to $500bn.

Think about it through the lens of how the Mag 7 plan their growth. Meta, Google, Microsoft, Amazon, they are each telling shareholders and the market they are spending $60bn to $80bn per year for the next 3 years on AI infrastructure. They are planning capex 2 to 4 years out and asking for patience. The market rewards that kind of forward planning.

Now apply that same thinking to GameStop. This is not capex, but the principle is the same: how much capital does RC need to build a $100bn to $500bn conglomerate? The answer is: a lot. And it needs to come from a combination of cash flowing acquired businesses that can generate $4bn to $5bn per year, plus accretive equity raises and creative debt instruments (like those 0% converts).

If you assume $20bn in additional equity raises at an average price of roughly $25 per share, that is roughly 800m new shares. Add that to the 741m fully diluted count and you are at roughly 1.54bn shares, well past the current 1B authorized limit.

If RC wants to hover around a 60 percent issued-to-authorized ratio (which, based on his Alibaba and Apple track record, seems like a reasonable mental ceiling), he would need authorization for roughly 2.5bn to 3bn shares. My guess is we will see a proposal for 2bn to 3bn, likely the latter.

Here is the key point most people miss: increasing the authorized share count is not dilution. It is giving the board the legal runway to execute over a multi year period. Dilution happens when shares are actually issued, and RC has shown through his $35bn all or nothing compensation plan that he only wins if the stock goes up. His 171.5m options are worthless unless GameStop hits $100bn in market cap and $10bn in cumulative EBITDA. Every share he issues needs to be accretive to that goal or he is lighting his own paycheck on fire.

It takes money to buy whiskey. You do not build $100bn plus companies without capital. And it is far better to ask for authorization now, while utilization is at roughly 45%, than to come back begging when you are at 90% and the market reads it as desperation.

This is forward planning. This is the Berkshire playbook. Do not let it scare you.

[Davids Trindade🇵🇹 @Davids58424262]

@team_never_tilt @grok @LBleuBlancRouge

[Davids Trindade🇵🇹 @Davids58424262]

@srfrederiksen @AdamMoczar

[TBPN @tbpn]

AMP founder @AnjneyMidha thinks GameStop CEO Ryan Cohen is onto something with his eBay bid.

He says that eBay's 10K filing showed it spent $2.4B on marketing to acquire a million users, or $2,400/ user, in FY2025.

"I don't think he's buying eBay because he thinks he's smarter than eBay's product team. I think he's buying eBay because he can see $2 billion of fat that Wall Street has been pricing as fixed costs. So he goes, 'Let me cut that, and the interest on the debt just pays for itself.'"

Anjey also says Cohen could use Gamestop's 1,600 retail locations to physically authenticate collectors' items, which eBay does big business in.

[TBPN @tbpn]

FULL INTERVIEW: $GME CEO @ryancohen joins TBPN to discuss the eBay acquisition

00:22 Unpacking "half cash, half stock"
02:07 Ryan's vision for eBay
04:36 Live commerce and eBay
05:12 Why he's the best person to buy eBay
06:29 History of cutting costs at GameStop
08:47 Comparing the bid to Elon's Twitter take-private
12:01 eBay's reaction to the bid
13:48 Why eBay will be worth more under Ryan's leadership
18:02 How much of his net worth will be in eBay if the deal goes through
19:10 eBay's digital goods opportunity
22:57 Options if eBay rejects the bid
25:58 On ModRetro and retro gaming

[Pedro Sánchez @sanchezcastejon]

Si tiene que leer algo, señor Feijóo, lea el acuerdo del PP con Vox en Extremadura.

Dan una patada a la Constitución, quieren un frenazo a las energías renovables y quieren desmantelar lo público.

Ustedes se financian en B y quieren trabajadores en B.

[Davids Trindade🇵🇹 @Davids58424262]

@staypredictable @The3Antons @ryancohen

[Davids Trindade🇵🇹 @Davids58424262]

@The3Antons @realestate53719 @ryancohen The company must be 10x that so he can receive that package!!!