This could signify that the company is embracing its image as a meme stock. This partnership makes sense to many since investors who believe in meme stocks will also likely be cryptocurrency supporters. Investors are just concerned about the rate the company is spending money without turning a profit.Ī new deal was also announced with FTX, a crypto exchange where users can buy and sell cryptocurrency and NFTs. While the company seems to be burning through cash, the upside is that they have plenty of runway left to grow their business with the cash they currently have. This is down from the billion dollars in cash the prior quarter. The company ended the quarter with $908.9 million in cash and equivalents. If consumer demand does increase in the coming months, GameStop should be able to match it with supply. According to the company, this increase in merchandise was intentional as they wanted to keep up with customer demand. GameStop announced that inventory totaled $734.8 million at the end of the quarter, an impressive figure considering that many retailers have struggled with supply chain issues. Such company’s financial results are often disconnected from the stock price because of the artificial boosts their stocks receive from social media-fueled rallies. It’s difficult to say with certainty why any meme stock goes up. This naturally leads us to an important question. The GME stock closed at $24.04, then opened at $25.00, and was up as much as 10% from the previous close on the morning of September 8th. However, it’s noteworthy that GameStop stock went up after these results came in. This is the sixth consecutive quarter where the video game retailer had to announce a loss. Losses grew to $108.7 million, up from the previous quarter. Sales declined for the quarter by 4% to $1.14 billion. GameStop announced its second-quarter earnings report on September 7, 2022. It has been revealed that the GameStop NFT marketplace is bringing in less than $4,000 in daily revenue, clearly much lower than what the company had hoped for. Unfortunately, both moves didn’t progress the company as management hoped they would. GameStop recently went through a 4-for-1 stock split and introduced an NFT marketplace, in hopes of increasing the share price.
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