Jeff Macke: GameStop is 'a dump truck of a company'

'It stopped making sense from a business perspective a while ago,' market commentator Jeff Macke told Yahoo Finance Executive Editor told Brian Sozzi. With a little lightheartedness, the long-term friends joked about what the GameStop (GME) stores look like today: 'they're packed away in the mall where like the newsstand used to be and the shoe polish guy,' Macke said.

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Video Transcript

I still approach gamestop.

Jeff, as you can imagine, from a fundamental perspective.

I don't know, I was an analyst for 10 years and wow, I read financial statements but it's totally detached from that reality.

What is your read on gamestop?

What do you think happens next and why?

Uh, you know, it's a dump truck of a company.

To be honest, it, it's, you know, five years ago, I was actually long, I had my kids accounts in it.

I owned it when it, when, when, you know, it was the $4 stock.

I didn't know who roaring kitty was, but I figured that you could manage this business a little better than the guys that were in charge then.

And you could, but the problem is that, that things just got out of control.

I had no idea why the stocks spiked the way it did.

So I sold at 25 and I thought I was freaking just the genius of all time.

It went up to a split, adjusted what, $5 billion or something insane like that.

And I, you know, but, but so it's not making sense from a business perspective.

A while ago, it's a totally different company now.

And so what happened the other day when, when, you know, the roaring kitty guy came out and 700,000 people myself included, sat there and wondered exactly how much micro dosing he'd been doing and, and what the definition of micro might be.

You know, it, it's his, his notion that, you know, I've done no research on it.

I just really trust the company that falls flat to guys like you and me because that hasn't really worked.

Says this company's garbage.

Uh, but it doesn't matter, it doesn't seem to matter anymore.

The 10-K does the anecdotes to the people you've brought in to, to kind of fix up, you know, Jeff, you ever been to a cave stop?

It's so dreadful.

It's like Billy, there's like no lights in these stores and there's over 4000 of them now.

No, it's there.

And they're packing in the mall where like the news stand used to be and the shoe Polish guy and it's just like this is, this is probably not a growth industry and, and they're selling cassettes.

So it's like Bob, you know, it's like, it's the house of VCR rental and, you know, in a, in a modern world they never figured out how to go online.

And, you know, it just as a retailer, it's nothing now where it becomes interesting.

It's an $11 billion company.

Ryan come to his credit was smart enough to, to kind of monetize that.

Now, the cynical way of looking at it is he is exactly the type of fat cat that was pilloried and made so much fun of in this kind of we're gonna stick it to the man with our diamond hands, things like they're really gonna give it to him.

Huh.