GameStop shares down 9%

10 September 2021
3555
2 min.
1
GameStop shares down 9%

Losses for three years

GameStop (GME) investor enthusiasm continues to fall, despite the video game company's financial report showing quarterly revenues above Wall Street analysts' forecasts. GameStop is perhaps the best-known 'stock meme', but the company is still loss-making.

GameStop (GME) shares, which had become very popular on the back of their explosive speculative rise earlier in the year, fell 8.75% in after-hours trading on Wednesday after the company released its second quarter report.

Market analysts have previously pointed out that the current share price is not justified by GameStop's fundamentals or its growth prospects.

GameStop's share price has risen almost 10 times since the beginning of the year, but the last week has seen a downward trend in the company's shares.

GameStop, with a market capitalisation of $15bn, has announced to its investors that it is switching its current business model of selling video games on media and consoles in its chain of shops to electronic sales and delivery. GameStop's competitiveness is low, given that the company does not sell mobile games, a category that is expected to generate more annual global revenue this year than console and PC games combined, according to industry tracker Newzoo BV estimates.

GameStop's financial report for the second quarter of 2021

GameStop's quarterly loss fell to $61.6m, down from a loss of $111.3m a year ago. The loss per share was $0.76, better than analysts' forecasts of $0.67.

GameStop has reported annual losses for three consecutive years. GameStop's sales revenues rose 25% to $1.18 billion, which also beat analysts' average estimate of $1.12 billion.

The company reported growth in the hardware, software and collectibles categories.

To improve its online order delivery service, GameStop announced it had signed a lease agreement for a large distribution centre in Nevada.

GameStop management did not provide financial forecasts for the next quarter or details on its strategy to increase sales and market share, nor did it respond to questions during the conference call for the report.

Companies1 in the news

GameStop
1 place
Section:
Rating companies
Netflix
18 Mention
Instagram
16 Mention
X (Twitter)
11 Mention
Tesla
10 Mention
Amazon
8 Mention
TikTok
8 Mention
White House
7 Mention

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
Population
8159776978
Died this year
46540180
Born this year
114497080