GameStop Corp (NYSE: GME) shares slid 10% after-hours as stockholders expressed disappointment in a surprise loss for the fiscal fourth quarter. Revenue, however, topped expectations on “new and expanded relationships” with the likes of Lenovo, Corsair, and Alienware.
What GameStop Q4 earnings report tells us
Lost $147.5 million in the fourth quarter that translates to $1.94 per share.In the same quarter last year, it had posted $80.3 million in earnings ($1.23 a share).Revenue was up 6.0% YoY to $2.25 billion, as per the earnings press release.Analysts had forecast 85 cents of EPS on $2.2 billion in revenue, as per FactSet.PowerUp Rewards Pro members grew 32% in fiscal Q4.Have $1.271 billion in cash and equivalents, and inventory worth $915 million.
GameStop to launch an NFT marketplace
According to GameStop, it is set to launch a marketplace for NFTs (non-fungible token), in partnership with Immutable X, before the start of the third quarter. As per Aria Capital Management’s Adam Hollander:
A lot of these NFT projects are starting to add gaming utility behind the NFTs themselves. GameStop is well-positioned to be able to capitalize on that. They have hundreds of millions of people that play video games and recognize GameStop as a credible brand.
Also on Thursday, MarketBeat’s Chris Markoch said GameStop will remain overvalued as long as it has an unprofitable model. Shares of the American video gaming merchandise retailer have crashed roughly 70% in less than four months.
The post GameStop shares slid 10% after-hours: explained here appeared first on Invezz.