GameStop shares fall as video game retailer's losses widen. New York News. New York Business portal

9 December 2021

3357

2 min.

GameStop shares fall as video game retailer's losses widen

GameStop losses

GameStop (GME) shares fell on Wednesday after reporting higher loss growth than market analysts had predicted. GameStop management cited revenue growth, ongoing transformation and ambitious goals, including exploring blockchain, NFT and Web 3.0 gaming opportunities.

GameStop (GME), the US game retailer undergoing an e-commerce transformation with the arrival of new management, reported an increase in losses in its latest quarter on Wednesday.

For the third quarter ended 31 October, GameStop's loss per share rose 62% to -$1.39, up from -$0.53 in the same quarter last year. This is also significantly worse than the -$0.53 loss per share that Wall Street analysts had forecast on average. GameStop's total quarterly revenues rose 30% to $1.3 billion, above analysts' estimates of $1.19 billion.

On the positive side, the company's inventory nearly doubled this quarter compared to last year, reflecting GameStop's focus on upfront investment to meet higher demand and mitigate supply chain issues.

GameStop (GME) shares, one of the loudest meme stocks to post a 925% increase over the past year, fell 2.3% on Wednesday. As a result, GameStop's share price has fallen 20.6% over the past month.

However, many on Wall Street are sceptical of GameStop's current stock valuation, given that the share price is far from the company's own fundamentals.

Nevertheless, many investors have faith in GameStop's new management, including new chairman Ryan Cohen a former Chewy co-founder and new CEO Matt Furlong and new COO Mike Recupero former Amazon executives (AMZN).

During a report on Wednesday, GameStop management declined to provide formal financial targets, but said the company is focused on expanding its range, speeding up delivery speeds and improving customer service. To achieve this, GameStop is making long-term investments in infrastructure, talent and technology. CEO Matt Furlong said the company will prioritise revenue growth and market leadership over short-term profitability.

Furlong confirmed that GameStop is exploring blockchain technology, non-exchangeable tokens (NFT) and Web 3.0 games, but did not provide specific plans. The CEO also declined to answer analyst questions.

Persons³ and Companies² in the news

RECUPERO Mike

Technology industry finance executive of the GameStop

1 place

COHEN Ryan

Chairman at GameStop

2 place

FURLONG Matt

Chief Executive Officer at GameStop

3 place

GameStop

1 place

Amazon

2 place

Tags:

Section:

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.

GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.

The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.

New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!

Alena Potapova

Development Director