Hi {{first_name}} ,

Edwin here, your host for TMC Daily. Yesterday, Ryan Cohen appeared on a livestream called the Technology Business Podcast Network (TBPN), hosted by John Coogan and Jordy Hayes. This is the first time I've had a chance to share my thoughts on it, and after reviewing the notes from the livestream, I wanted to break down some of the key points.

Ryan covered a lot—from $GME ( ▼ 1.97% ) headcount reductions to his views on the video game market and emerging tech. No fluff, just straightforward insights into GameStop's direction and that substantial war chest. Let's get into it.

🔉 Want to skip the read and listen to Spaces Call for $GME Insights from the chairman? Here you go: https://x.com/edwinbarnesc/status/1980478164121145772

Right off the bat, Ryan confirms the origin story we all know and love. Back in August 2020, he drops that 13D filing, scooping up GameStop shares like it's going out of style. By January 2021, he's on the $GME ( ▼ 1.97% ) board, and bam, the saga explodes. "The rest is history," as he puts it.

But here's a fresh nugget. Ryan calls out how board members and execs back then had "perverse incentives" (stuff that wasn't aligned with shareholders). No wonder he shook things up big time. If you're new to this, it's all about putting skin in the game. Ryan straight-up says folks who don't risk their own money "don't give a shit" (yep, he went there). And he’s right. That’s why I love this guy, because he puts his money where his mouth is and leads by example.

This one's a doozy, and the notes hammer it home. GameStop slashed corporate headcount from 1,400 execs down to 400. That's a whopping 1,000 folks out. Top brass, middle managers, the works. Many board members got replaced or dismissed too, all to ditch those misaligned incentives. We've seen the layoffs play out if you've been tracking $GME like me, and it confirms my thesis. Ryan's building a tighter ship for max efficiency.

Here's the quick stats to make it crystal clear:

This isn't just cost-cutting. It's about getting everyone rowing in the same direction.

Ryan's a smart operator through and through. He loves "reducing costs" and says it multiple times. But here's the gold. He wants to sell products at high margins, no moonshots or wild gambles. Pragmatic all the way, aiming for real returns. He even admits getting humbled trying to slap the Chewy playbook onto GameStop.

Ecommerce and physical retail are "very, very different," and it cost shareholders some money early on. Brutal, but honest. Now, incentives are locked in with common shareholders and he's got his own money on the line. He's all about moving the needle with scalable ideas. If it's 80% margins but not billion-dollar potential? He doesn't care. Focus on what scales big. That's the focus.

Oh, and about filing earnings reports with SEC? He'd go bi-annually if it saves cash, but he knows shareholders deserve the info. Still, he’d rather save cash. That’s Ryan.

The video game world's flipping from physical discs to digital downloads, and Ryan's on it. No heavy capex, just a clear path forward. But the real nugget? Collectibles are exploding! GameStop’s partnership with Pokemon and PSA Grading Cards has proven itself. Trading cards went from 10% of GameStop’s sales to a whopping 33%. That's a 300% jump in that category. He calls it a "strong appetite," nostalgic, and even hints it could be a store of value.

GameStop’s Power Packs (mix of physical and digital) are hot too. Can't get enough inventory. And Virtual Reality? Ryan roasts Meta Quest as a "joke" with "retarded glasses on their head." Lol, no holding back!

Quick table on the collectibles boom:

This shift is GameStop evolving, folks. Digital world, here we come. The next earnings report is going to be painful for Wallstreet and the financial markets.

Idiosyncratic risk intensifies. Read about that stock here.

Fresh from the notes. AI's integrated into GameStop to "do more with less." Smart way to boost efficiency. I revealed GameStop’s tech stack integration in this post recently.

But Ryan's cynical on emerging tech. He doesn't want to be first, and will wait for adoption. His view on AI's future? Ryan believes it's sci-fi movies coming to life. Computers vs. humans, robots coming after us ("who the fuck knows?" -RC). He's worried about wealth inequality and if it's good for humanity.

We're only in the 2nd or 3rd inning, he says too, so be careful. They even shout out that Karpathy interview which I talked about in this post. Ties right into the big picture. Ryan's not buying hype, instead he’s focused on what works now and maximum ROI.

Ryan held his tongue a few times. Media's always lurking for hit pieces, so he's careful. But those hints? Gold. M&A in collectibles could be brewing, and he's eyeing scalable plays that translate to billions. Read between the lines. GameStop's war chest is for meaningful moves, not fluff. He's always dropping clues, and these notes confirm he's playing the long game.

It’s no coincidence that Immutable is GameStop’s exclusive web3 gaming partner, which has not terminated. This can only mean one thing, NFTs will make a come back.

Let's tie this back to Ryan's roots with Chewy, because that's where a lot of his wisdom comes from, and it sheds light on what he's doing at GameStop. Back in the late 1990s, Amazon was dipping into pet products, but Ryan didn't jump in right away. He started out wanting to sell jewelry through affiliate marketing. Then, in 2011, he launched $CHWY ( ▲ 2.28% ), focusing on delivering pet food at the lowest prices, in the fastest time, with top-notch customer service. The key takeaway? You don't have to be the first mover to crush it. Ryan stressed that success comes from zeroing in on one category and owning it. Become the category king by specializing and doing that one thing better than anyone else.

He hammered home that the best marketing is word of mouth, not pouring cash into Super Bowl commercials. Build big market leadership by keeping customers delighted and running the company efficiently. That's how Chewy grew into a beast. Now, fast-forward to GameStop. Ryan admitted he came in as a hotshot, trying to slap the Chewy ecommerce playbook straight onto GameStop, and it humbled him quick. Ecommerce and physical retail are worlds apart. In physical stores, you can't just hold onto inventory. You have to sell it fast, or it ties up cash. That misstep cost GameStop shareholders some money early on, but Ryan learned from it. And get this. Both models clicked for him because he's got his own skin in the game. His money's on the line, so incentives align with us shareholders.

This all connects to GameStop's big tech shift. Remember 2022? They were hiring like crazy to pull off a massive cloud migration, moving everything from that old brick-and-mortar setup to a modern, cloud-based system. Ryan touched on the evolution of commerce in the interview, and it fits perfectly. By specializing and focusing, GameStop can become a leader in gaming and collectibles without needing to be first. Word-of-mouth will drive growth over flashy ads, and efficiency is key to making it all work. This overhaul isn't just an upgrade. It positions GameStop for digital dominance, blending physical roots with ecommerce smarts to handle the shift from discs to downloads and beyond. Exciting stuff, right? It shows Ryan's applying those hard-won Chewy lessons to build something scalable and profitable.

Man, this interview was packed. Ryan's raw takes on costs, collectibles, AI risks, and more just reinforce why $GME is stock for the Golden Age. It aligns with everything I've been sharing. Smart moves, efficiency first, and building real value. If you felt he held back, yep. He did, but those nuggets are there for us sharp-eyed folks.

Head over to X and watch the full TBPN video here: https://x.com/tbpn/status/1980386467546558546.

Drop your thoughts in my DMs or hit reply to this message. Let's chat! Stay tuned for more TMC updates. We've got big ideas cooking. Rocket's fueled. Next launch coming.

Very best,
Edwin

p.s. Check out my recent livestream Episode 21 - MAHA and my follow-up post on MAHA: How to Reverse-Uno Cancer, here (Big Pharma doesn’t want me sharing this)