Rethinking my bull thesis on GAP
Company has shown great management during the pandemic

They continue to grow rapidly towards online sales, plan to shut down underperforming stores while keeping valuable flagship locations if they continue on this path which is likely they should be valued closer to the sector average of a .8 p/s ratio possible even a 1.0 due to getting rid of operational liabilities and improving their profit margins

If they simply do that they could more than double from here given they had 16b in sales last year fair value could be a 12-14b market cap from 6b now.

Then you include the possible 2b in annual revenue from Yeezy within 5 years and the halo effect on the GAP brand which could account for hundreds of millions to a billion or 2 by 2025 including the perception of the brand no longer seen as a dying brand could push the P/S to 1 or slightly above 1

Including that growth you could see GAP bringing in 20b in less than 5 years with probable growth from their athleta brand possibly 21-22b in annual revenues across all their brands with a stronger online presence

Could see this company at 20-25b in a few years which is a 3-4x from here and a 6-7x from when Kanye announced the partnership

Just copped 50 shares b

Investing in retail is f***ing stupid but I believe in Kanye b

& that’s just a 3-5 year outlook. If Ye brings the company that type of success they’ll have to put him on the board and make him the creative director of the company. Then you’re talking about possibly massive growth with GAP as a company operating more like LVMH with designers getting their own brands but at Old Navy prices. Then you gotta remember Yeezy is a global brand and has the potential to take GAP to countries it’s never been

If Yeezy GAP is successful this is going to change everything for this company and stock

Easy Money. Duh.

Don’t think to hard about it.

Already made 200 in 1 month 👀.

This is a highly optimistic take bro, but I somehow trust Ye to make wonders with this

stonks

I wouldn’t be as optimistic if it didn’t seem like they were focusing on the right things but from what I can tell they’re trying to make all the right moves and rebrand themselves through Kanye

Imagine having Kanye for the next 10 years and think that GAP won't thrive.

Couldn't be me.

It was nice knowing you guys

Stock seems to be holding well during this down turn and it seems like it’s trading based off fundamentals rn which gives a lot of room for speculative traders like us who see the addition of Yeezy as a big needle mover to capture a lot of upside

Market pressures are likely to push this down further this week so if it ends up in the 15 dollar range it’s a strong buy for me. If it gets anywhere under 16 I’m going to be slowly adding more shares throughout September-October so I can capture some of the bottom of this overall market dip

dont f*** this up kanye

the valuation of this stock should only be taken serious until something Kanye hits the streets, or when the new website and whole shopping experience drops

It must be like hell to collaborate with Kanye.

Man is unpredictable af

2021 drop will decide this

Most of its all just talk tho. Businesses with the companies Ye works with always go well

Look at how well Adidas working with him has gone. Like they haven’t even suffered off of him, they provide infrastructure and production, don’t have the market shoes that heavily cus they sell without it, and in return get $1.5B off a company that improves each year. Seems easy and no brained for them even in Kanye’s controversial moments. Was working with Wex as his adidas connect most of the time too and they have a great relationship

Being challenged to give him a board seat isn’t even a reach based on what he’s done for them.

Pretty much copying same formula for GAP and they need him much much more than he needs them. They’re in no power position with Kanye

100%

Gap Inc. Reimagines Hiring for the Upcoming Holiday Season

businesswire.com/news/home/20201001005436/en/Gap-Inc.-Reimagines-Hiring-for-the-Upcoming-Holiday-Season

Stock really high rn

Got it at $16

Bagged 57 shares @ $12

Winner

We all winners bro