GameStop vs Reddit Which Performs Better?

The GameStop vs Reddit stocks saga captivated the world in early 2021, as an army of amateur investors on the social media platform banded together to drive up the struggling video game retailer's stock price. This unexpected turn of events caused chaos on Wall Street, with hedge funds losing billions as the stock soared to record highs. The battle between the retail investors and the financial establishment sparked debates about market manipulation, the power of social media, and the future of investing.

GameStop or Reddit?

When comparing GameStop and Reddit, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between GameStop and Reddit.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. GameStop has a dividend yield of -%, while Reddit has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GameStop reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Reddit reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with GameStop P/E ratio at 247.84 and Reddit's P/E ratio at -40.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GameStop P/B ratio is 2.40 while Reddit's P/B ratio is 11.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GameStop has seen a 5-year revenue growth of -0.15%, while Reddit's is 1.87%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GameStop's ROE at 2.05% and Reddit's ROE at -30.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.63 for GameStop and $128.30 for Reddit. Over the past year, GameStop's prices ranged from $9.95 to $64.83, with a yearly change of 551.56%. Reddit's prices fluctuated between $37.35 and $139.03, with a yearly change of 272.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.