Of three analysts surveyed by FactSet, one has a hold rating and two have a sell rating for GameStop.The SEC said in a complaint Monday that investors Suyun Gu and Yong Lee took advantage of the maker-taker model in options markets that market makers use to attract orders and increase market liquidity. Speaking during the conference call, Furlong said that approximately $50 million of GameStop’s revenue decline was attributable to FTX. 11, GameStop tweeted that it was winding down its relationship and pilot partnership to market gift cards with FTX and that it would provide refunds to affected customers. Last month, FTX, which was once the world’s third-largest crypto exchange, filed for bankruptcy following a dramatic collapse that sent shockwaves through the crypto industry. In September, GameStop’s stock surged after the company reported a narrower-than-expected loss and announced a partnership with cryptocurrency exchange FTX. The company’s market cap is now around $7.1 billion.Īlso read: GameStop: Cash burn, lack of profitability loom large over meme stock darling Between January and March 2021, GameStop’s stock price rose more than 1,200% and the company’s market cap surpassed $17 billion. 1.21% , was a major beneficiary of the meme-stock buying frenzy in January 2021, which sent the struggling company’s shares skyrocketing to dizzying heights. GameStop, like its fellow meme stock AMC Entertainment Holdings Inc. The video game retailer’s stock has declined 40% in 2022, outpacing the S&P 500 index’s decline of 17.5%. GameStop’s stock ended the regular trading day down 4.8%, compared with the S&P 500 index’sĭecline of 0.2%. GameStop’s long-term debt remains limited to a low-interest, unsecured term loan associated with the French government’s response to COVID-19, the company said. The company also ended the quarter with $1.042 billion in cash, cash equivalents and marketable securities. Inventory was $1.131 billion at the end of the quarter, compared with $1.141 billion at the end of the prior year’s third quarter. GameStop’s stock rose in after-hours trading Wednesday. “We now have a firm understanding of the resources required to pursue opportunities in gaming,” he said. The CEO said that, throughout 20, the company was extremely focused on repairing what he described as “our decayed foundation.”įurlong also described reductions in headcount during the back half of this year, but did not give specific numbers. The company is a stronger business today than at any time in the recent past, he added. “We’re seeking to transform a legacy brick-and-mortar business that was on the brink of bankruptcy,” he said. Speaking during a conference call after market close, GameStop CEO Matt Furlong said that the company’s priorities are achieving profitability in the near team and growth in the long term. ![]() GameStop also reported its seventh consecutive quarterly loss. See also: GameStop stock soared, then fell all the way back down, in biggest price reversal since May. To report an adjusted loss of 28 cents a share on sales of $1.345 billion. ![]() Sales fell to $1.186 billion, compared with $1.297 billion in the prior year’s quarter.Īnalysts surveyed by FactSet expected GameStop ![]() Adjusted for one-time items, the company lost 31 cents a share.
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