$GME - GameStop has successfully transformed from a struggling retailer into a profitable collectibles business with strong cash generation. Q1 revenue grew 14% YoY to $835M, collectibles now represent 42% of revenue at $350M, SG&A was cut from $228M to $202M, and the company has $4.7B in cash with $333M in free cash flow. The board authorized share repurchases, demonstrating confidence in the business.
$EBAY - eBay has significant unrealized value through operational improvements and strategic expansion opportunities. Cohen identifies three value drivers: immediate $2B in cost cuts from a bloated $5.5B expense base, massive growth potential in live commerce (a $400B TAM where eBay is underperforming despite having users and brands), and expansion into digital collectibles/in-game items marketplace which could exceed eBay's current physical marketplace. The business has strong marketplace economics but has been mismanaged with stagnant growth while ecommerce expanded around it.
Bearish:
$EBAY - Under current management, eBay has systematically underperformed with declining key metrics post-2015. GMV is down, active users declined 30%, operating earnings are down, revenue is essentially flat, while operating expenses increased dramatically to over half of revenues. Management has alienated sellers by not providing necessary tools, forcing them to use third-party solutions, and the platform quality has deteriorated significantly in live commerce and seller experience.