May 19, 2022

News Collective

Complete New Zealand News World

GameStop misses earnings forecast, plans to launch NFT market

GameStop misses earnings forecast, plans to launch NFT market

Bloomberg — GameStop Corp. (GME) reported a surprise loss for the January quarter and said it will launch a non-fungible token market (NFT) at the end of the second quarter of fiscal 2022.

The company reported an adjusted loss of $1.86 per share, while analysts had expected a profit of 84 cents.. Net sales rose 6.2% to $2.25 billion in the three months ended Jan. 29, the video game retailer said in a statement Thursday. Analysts had expected sales of $2.23 billion. Shares fell 9.8 percent in extended trading.

GameStop has been plagued by a combination of supply chain problems and a murky business strategy.. In recent years, it has gone through a series of business concepts with mixed reactions from investors and clients.

The market has been waiting to hear more about GameStop’s long-awaited plans NFT . Market (NFT Market) after reports of the project surfaced earlier this year. Last month, the company announced a partnership with Australian gaming startup Immutable X to create a fund that will provide grants to NFT creators.. In announcing the results, GameStop said it would provide Immutable with up to $150 million in IMX tokens if it hits certain milestones.

Chairman Ryan Cohen, co-founder of Chewy Inc. for pet supplyCHWY) joined the Board of Directors last year with a vision of revitalizing growth, which has slowed as gamers switch from purchasing game cartridges to digital downloads. The company has been further affected by the Covid-19 pandemic, which has closed its retail stores.

“It is difficult to see a significant future for the company given the massive transformation of its primary end market,” said Vital Knowledge analyst Adam Crisavoli. “And while tools like the NFT Marketplace can help drive interest in the event, they are unlikely to translate into much financial benefit.”

See also  Silicius debuts on BME Growth following EiDF, which is up 300% | markets

GameStop’s stock has swung wildly in the past year. They gained nearly 700% in 2021, but are down 41% this year, closing at $87.70 in New York on Thursday.

The latest push into NFTs has investors excited, but few details remain about the plan. The company said Thursday that it has hired “dozens of additional people with expertise in areas such as blockchain gaming, e-commerce and technology.”Product and process renewal. “

Reggie Fels Im, a former GameStop board member and former president of Nintendo of America Inc (7974), condemned the company’s recent orientation on a panel at the South by Southwest conference last week.

“You can go to the GameStop website. Try to find a strategy. There is no clear strategy,” said Phils Aimh. “I have come from a business perspective that you need to articulate your strategy for all of your key components”.

Assisted by Bailey Lipschultz.

You may be interested in:

ETF Stock Meme Is Boring Now Its Manager Says It’s ‘Sleeping’

New MEME ETF seeks to attract bets from retail investors

The market crash defeats the traders who stood up to Wall Street

This article was translated by Andrea Gonzalez