GameStop fell as much as 10% to the lower bound of its meme-stock price range after reporting Q4 earnings results.- The company revealed a surprise loss during the holiday season as video game console sales slowed.
GameStop stock is down 83% from its record high of $483 per share seen during the January 2021 short-squeeze.
$4 has $4 and is now in the execution phase as the video-game retailer attempts to stage a turnaround led by its chairman, Ryan Cohen.
That scenario became apparent on Friday when the stock fell as much as 10% after $4 The stock then reversed those losses and traded up as much as 6% in early Friday trades.
The company beat revenue estimates but reported a surprise loss for the quarter as video game console sales decelerate following a surge in sales amid the COVID-19 pandemic.
Here were the key numbers:
Revenue: $2.25 billion, versus analyst estimates of $1.95 billion
Adjusted earnings per share: -$1.86, versus analyst estimates of $0.84
PowerUp Rewards Pro Members: 5.8 million, representing year-over-year growth of 32%
Video game sales overall have been decelerating from the pandemic peak over the past few months, with a decline in console sales hurting GameStop the most. Hardware and accessories sales represented 52.7% of total sales for GameStop, a decline from the 54.8% a year ago.
While demand for video games is not as high as it was when much of the country was in lockdown, $4 and Microsoft's Xbox Series S consoles also put pressure on sales.
GameStop is moving ahead with a transformation strategy into a specialized e-commerce retailer focused on video games, accessories, and digital products. During the fourth-quarter, GameStop launched a partnership with Immutable X to develop and $4
But the allure of operating a NFT marketplace may have lost some of its luster over the past few months as $4 from their peak.
Despite GameStop's fourth-quarter loss of almost $150 million, the company had more than $1.2 billion in cash and nearly $1 billion in inventory at the end of its fiscal year. That's a big enough cash runway to fund the company's turnaround endeavours for at least a few years, based on its FY 2022 loss of about $381 million.
GameStop stock is down 83% from its record high of $483 per share seen $4 Cohen has a lot of work ahead in order to satisfy investors that bought in during those sky-high levels.