GameStop in losses, pending NFTs

Posted 02 June, 2022

GameStop published last night larger than expected losses for the quarter ended, but the title progressed after trading on Wall Street. This somewhat contradictory stock market reaction comes as the Securities & Exchange Commission, the watchdog of the US stock market, has just issued a warning about 'meme stocks', these stocks moving in a very volatile way with the flows of purchases and sales. of 'social traders'.

For its first fiscal quarter, GameStop published an adjusted loss per share of $2.08 last night, compared to -$1.16 Bloomberg consensus and -45 cents a year earlier, at the same period. Revenues totaled $1.38 billion in the quarter ended April, 2% above market expectations, compared to $1.28 billion a year earlier. The American video game retailer, which is also getting into cryptocurrency and NFT, therefore beat the revenue consensus with this 8% growth but also doubled its net loss to $157.9 million. Ryan Cohen, who joined the board and became chairman last year, has tried to revive GameStop's growth, which had slowed as gamers shifted from buying physical games to digital downloads. It seems to have succeeded, but profitability is still lacking. GameStop recently launched a digital asset wallet allowing gamers to store, send or receive cryptocurrencies and NFTs. The wallet will be used in the group's new NFT platform, which is expected to launch this quarter.

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