GME: GameStop Stock Fails Post-Earnings Liftoff, 6% Drop Bruises Traders’ Long BetsLast week’s YOLO move by Reddit’s diamond hands didn’t pan out as GME reported a losing third quarter.
- GameStop stock (ticker: GME) dropped 6% in after-hours trading on Wednesday, looking to open Thursday's session under $14 a share. The company posted its highly-awaited fiscal third-quarter earnings report, much to the disappointment of retail investors. The OG meme-stock player couldn’t live up to lofty expectations of consensus-crushing earnings figures and YOLO-themed long bets.
- GameStop reported a loss of 1 cent a share on sales of $1.078bn, coming in below estimates for $1.18bn. The earnings-per-share figure, however, was better than the expected 8-cent loss predicted by Wall Street. Sales in the US, the videogame retailer said, declined by 13.3% from the year-ago quarter.
- The company, which doesn’t provide forward-looking guidance, headed into the current quarter sitting on $1.2bn in cash and cash equivalents. On the year, shares of GameStop are down 13% despite efforts by retail traders to pump up the price.
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GME: GameStop Shares Soar 20% as Traders Bet on Blowout 3rd-Quarter Earnings DataThe household name in the meme-stock corner is gearing up for its Dec. 6 earnings data. And traders like the stock.
- GameStop stock (ticker: GME) skyrocketed 20% on Wednesday, lifting shares to a two-month high of $16.25 a piece. The retail-trading army flocked back to the Reddit darling in anticipation that the company’s earnings report, due Dec. 6, will knock it out of the park.
- Thrill-seeking traders flocked back to GameStop this week, scooping up high-risk call options contracts with strike price of $22. In essence, the pump-loving community of retail investors is betting that the stock will go ballistic after the video-game retailer reveals its third-quarter financials.
- The speculative move ahead of the update saw shares exceed their average daily trading volume by as much as 17x. Is the retail army roaring back to life with another short squeeze? GameStop is up 36% since Tuesday but ways away from its record high of $483 per share.
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GME: Hold the Line - GameStop Jumps 48% on Surprise ProfitWho said diamond hands were out of fashion? Let’s take a look at why GameStop is making a comeback.
- GameStop swung to a quarterly profit for the first time in two years. The surprising news shot the meme stock higher by 48% in after-hours trading, giving the diamond hands among us a reason to drool over the opening bell in New York on Wednesday. Let’s talk about that.
- The retail traders’ darling reported earnings of 16 cents a share, compared to a loss of 49 cents in the year-ago quarter. That’s a profit of $48mn. The figure also blew past forecasts of a per-share loss of 13 cents. GameStop notched $2.23bn in sales for the quarter ended Jan. 28.
- The videogame retailer, whose stock sparked a trading revolution, had been hard at work to swing itself back to profitability. While it’s too early to say whether the meme-stock momentum is making a comeback, the short-term volatility is to many a nice trip down memory lane.
Web3 gaming goes live on GameStopGameStop stands to be a major player in the crypto world, which investors are understandably excited for given its declining core business.
- GameStop’s NFT marketplace is now live on Immutable X, a layer 2 Ethereum scaling protocol. The marketplace’s official release has been highly anticipated since its beta version was launched in July for public use, and is the result of a partnership that’s been months in the making.
- It means assets from Web3 games can be bought and sold on the platform. GameStop initially only offered digital artwork and collectibles, but with interactive NFTs based on a new popular slate of Immutable X-based games like Gods Unchained, there’s bound to be an increase in traffic.
- GME investors seem incredibly excited about the potential here. The stock soared nearly 25% in day trading to touch its highest level since mid-August before the NYSE halted trading based on the “Limit Up Limit Down” rule and the stock closed up only 0.5%. Can GME successfully buoy its embattled balance sheet with this new attraction?
Shubham's Web3 / Unsplash
A sixth consecutive quarterly lossGameStop's latest earning’s report reveals accumulating inventory and big losses – sorta like a facemask salesperson in 2022 – but not quite as much as some analysts forecast.
- GME’s Q2 earnings report has revealed a $109M loss, which, on an adjusted basis, amounts to 35 cents a share – compared to 19 cents a share for the same period last year. Net sales have also done an oopsie, slipping from $1.14bn compared to $1.18 billion a year earlier, while inventory has swollen nearly 25% to $735M.
- Still, the stock jumped over 10% in after-hours trading, possibly driven up because FactSet analysts had braced people for an adjusted loss of 42 cents a share. That or retail trading degenerates really liked the news about the retail chain’s e-comm & marketing partnership with crypto exchange FTX.
- Profitability is now the name of the game for the biz, decreasing its QOQ expenses 14%, recently firing its finance chief, and making job cuts after hiring over 600 people in 2021 and this year. Still, it’s got a way to go before areas like its NFT marketplace start to show meaningful results on the balance sheet.
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A nefarious NFT sale?An accusation towards an NFT minter on the new GameStop NFT marketplace brings to light the complexities of the non-fungible market.
- GameStop’s NFT marketplace sold a HTML5 game without permission, says the game’s developers. Those behind the popular Indie Games have come out against the marketplace and Nathan Ello, who released the NiFTy Arcade interactive NFT collection and earned at least $55k without getting consent from the owners of the game.
- The creator has now been suspended from the platform despite having received all the appropriate permissions earlier, though the money he earned is still securely in his account – it marks the second controversy for GameStop’s new marketplace, which had to remove an image of a 9/11 victim only two weeks ago after huge backlash.
- It once again highlights the blurry lines in the NFT world between ownership and theft, going back on the promises made in 2021 by NFT marketplaces that non-fungible artists would have complete ownership of their work – the rules may not be clear, but they clearly do need to be slightly more stringent.
GameStop NFT launches. Now what?It’s been a year in the making, but GameStop finally launches its NFT marketplace – just in time to catch the optimum bleakness of the bear market blues.
- The long-awaited GameStop NFT launched on Monday. It works just like any other NFT marketplace, and GameStop and Immutable X have already launched a $100m token grant fund to attract devs and artists alike. Others that have attempted similar moves like Coinbase and eBay have so far have been met with relative tumbleweeds amid wider crypto market struggles.
- The marketplace has seen more than $2m in sales this week… which isn’t too much to write home about given some Bored Apes on OpenSea go for more than that benchmark alone. Even the second most popular NFT platform – Solana’s Magic Eden – currently struggles to compete with the market dominance of OpenSea. So needless to say, they’ve got their work cut out for them.
- The push into digital collectables is part of GameStop’s effort to reinvent itself. The age-old, brick-and-mortar company now wants its name in the web3 hat, and boy do they hope it’ll work: GME reported further losses on its revenue in Q2 and had to lay off an unconfirmed amount of employees in early July, including CFO Michael Recupero.
GameStop gets into the stock split gamePicture this, Oprah appears at this year’s GameStop AGM, shouting: “you get a share, you get a share, you get a share”. Well, that’s not what’s happening, but it’s something along those lines.
- GameStop has just announced a 4-for-1 stock split, which basically means shares are perceived as ‘more affordable’ and will (they hope) attract more investors without lowering the company’s valuation, as the brand tries to turn its memestock madness into financial success.
- GameStop “knows that they have a 100% retail shareholder base” and is trying to cater for those investors who don’t have the big bucks to throw around, Wedbush posits, while others think it’s bc the last thing they tried to hype up is NFTs, and that market is quote, “dead”, end-quote, rn.
- Investors were keen little beans, sending shares up 8% in extended trading on Wednesday. They’re not the first brand to take the step this year and surely won’t be the last, with a bunch of big and small companies including Tesla, Amazon, and Apple, also splitting up their stock.
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GamePop or GameStop?You know the old saying: always leave the party when you’re having the most fun. Well, it seems GameStoppers are considering following that advice if things don’t get better soon.
- GameStop shares popped nearly 9% in extended trading on Tuesday before paring most of those gains, following a Q1 report that was worse than expected with a LPS of $2.08 on revenues that were up 8% at $1.38bn, though the company said it’s still not comfortable giving guidance yet.
- Hardware and accessories sales fell over 4% YoY, which is a big deal considering those metrics make up the bulk of the business’ revenue. On the plus side, sales of collectibles rose, and software sales are on the up and up, plus the company brought in $76.9m in proceeds from the sale of digital items. Speaking of which…
- “Digital assets are core to the future of gaming”, said CEO Matt Furlong as he told investors that GameStop would be investing heavily in its blockchain efforts after launching a crypto wallet in May, though we didn’t get a financial update on the brand’s highly anticipated NFT marketplace.
Will Buckner / Wikimedia Commons
We Like The NFTGameStop has launched a wallet so you can store, send and receive NFTs from your browser. Just what you always wanted.
- Shares in the memestock legend flicked up 3% on news the video game retailer has dropped its latest wheeze – a self-custodial Ethereum wallet for Chrome (with iOS coming soon), which it hopes will fuel interest in its upcoming NFT marketplace.
- GameStop has partnered with Aussie startup Immutable X to create an NFT emporium in which “billions of low-cost, in-game assets can easily be bought and sold”. It’s due to launch in July.
- A lot of eggs have been put in this basket though as GME attempts to scramble into the digital space – but NFTs have proved divisive in the gaming community, so who knows whether this is a good idea. And GME is down around 36% so far this year. Best of luck guys.
The Game Stops for MelvinAfter trying to short GameStop out of existence, it now seems the chicken tenders have finally gone cold for Melvin Capital.
- How does one topple a $7.8bn hedge fund? Easy – just find a man wearing a bandana to spread the word of a brick and mortar stock heavily undervalued and over-shorted, get a bunch of degenerate apes to buy that stock, and then ensure nobody paper hands until the hedge fund wishes it never had access to its shorting button.
- Melvin Capital will be shutting down its business, so it seems like the apes actually won. CEO Gabe Plotkin announced that after a nightmare 17 months, Melvin is now “stepping away from managing external capital” and will begin the process of returning investors’ cash. At least 50% will be returned by May 31, and the rest by June 30.
- The firm lost nearly $7bn by heavily shorting GME in January 2021, losing more than half its value that month. It may have gone under then, had it not been for outsider support. Now apes will turn their heads to Citadel’s Ken Griffin, the Ultimate Degenerate Shorting Boss. But most apes are happy either way – they just Like the Stock.
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GameStop wants more sharesGameStop wants shareholders to authorize a bunch more shares, and price increases imply they’re keen.
🔍 Key points:
- The gaming retailer wants to split its stock soon. GameStop plans to ask shareholders to approve the increase of its common stock from 300m to 1bn, partly to conduct a stock split (its first since 2007) in the form of a dividend in future.
- The company’s shares catapulted 17% in extended trading on Thursday, building on March’s 35% gains – its best month since August. GameStop says it’ll “provide flexibility for future corporate needs”, so investors are hoping it’ll use some of the extra cash to work on its e-commerce transition.
- Technically speaking, a perfect stock split shouldn’t actually do anything to the underlying value of investors’ holdings. But the resulting lower share price can appear more attractive and accessible to traders, bumping up demand – and therefore value – as a result. Psychology for ya.
Oxiq / Wikimedia Commons
Retail traders ramp up their enthusiasmThe WallStreetBets crowd is never quiet for long, and share sale news from GameStop sends the whole memestock basket running ahead.
🔍 Key points:
- GameStop kicked things off by gaining 30% on Tuesday after earning itself top on the trending list. Things seem to have started with a WSB post by Tump4 suggesting the stock was trading at a 58.2% discount. That got people riled up and started the online chatter.
- The stock extended the rally by 16% afterhours when Chairman Ryan Cohen said he bought over 10k shares of the video game retailer this week, taking his total stake to 11.9%.
- AMC joined in on the fun to jump over 15% on Tuesday, with over 72m shares changing hands, which is about 164% times its average daily volume. AMC bought a stake in a metal minings company Hycroft (which is a very shorted stock) last week, but that’s the only real news we’ve had from them recently.
Playing a dangerous gameGameStop continues to test its investors’ commitment with an unexpected holiday quarter loss.
🔍 Key points:
- The stock sank nearly 10% in extended trading on Thursday after the retailer recorded a surprise loss in its holiday quarter despite topping revenue estimates, reporting LPS of $1.86 on revenues of $2.25bn. Prices are down over 40% this year alone, so they needed a win.
- The video game retailer felt pressure on its margins from ongoing supply chain challenges as well as Omicron, having made the conscious decision to absorb higher costs to meet customer demand. Appaz that side of things could go on for a while so GameStop once again declined to give any guidance, but CEO Matt Furlong has a plan.
- The brand is in the middle of a massive turnaround plan and is focusing on becoming a “customer-obsessed technology company to delight gamers”. Its move away from brick and mortar is going well, and this quarter will see improvements in its e-commerce efforts, its app, and website. Will it be enough to please the apes?
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How will investors console themselves after this?A bearish pre-earnings research note sends GameStop shares plummeting on their worst day of the year.
🔍 Key points:
- GameStop cratered nearly 16% on Monday to hit its lowest levels since February last year, just after its historic retail trading frenzy.
- A Wedbush analyst was to blame for this one. Influential voice Michael Pachter reiterated his Underweight recommendation on the stock, as well as his $45 price target – shares closed Monday at around $78, so he’s not feeling confident.
- It’s not a great prelude to Thursday’s earnings report. Pachter sees “modest” revenue growth this year, arguing that 2021’s short squeeze made the stock “completely disconnected” from its fundamentals. Only time will tell, we guess.
Zdeněk Macháček / Unsplash
GameStop guns for NFTsGameStop is trying its damndest to stay relevant in the post meme stock age, and it’s using NFTs to do it.
- It’s launching its own NFT marketplace together with Immutable X, a Layer 2 platform based on the Ethereum blockchain that was chosen because of its carbon neutral environment.
- It’s also creating a $100m fund with Immutable X dedicated to supporting Web 3 game development in its ecosystem.
- It wants to bring Web3 to gaming in an effort to keep its momentum as the retail trading frenzy fizzles out. But, it risks the wrath of its hardcore gamer fans that have already expressed anger at the decision, saying NFTs are just a money grab.
Investors press “Start”. AgainGameStop stock gets a Power Up after the gaming firm adds a new NFT feature.
- Prices pumped up by 30% in extended trading on Thursday. Investors have been AFK this year so far, with prices hitting a seven month low in intraday trading.
- GameStop has joined the NFT game. It reportedly has a team of over 20 experts working on an NFT platform and planning a bunch of big crypto partnerships.
- NFTs could be bigger than Bitcoin, according to Shark Tank legend Kevin O’Leary, who says they hold more potential because they can serve as proof of ownership for physical items.
Zé Ferrari Careto / Unsplash
Memestock mayhemTurns out even the online army can turn paperhands (who’d have thought it?), pulling back in the face of tightening monetary policy.
- Is meme mania in the rearview mirror? GameStop pulled back 13% on Wednesday to its lowest closing price since March, and AMC (AMC) and Bed Bath & Beyond (BBBY) both fell 10%.
- Retail investors are dumping speculative investments after the Fed announced an accelerated tapering timeline.
- Memestocks are struggling to stay relevant following their parabolic 2021 gains, and if Q3 earnings from GameStop and AMC (AMC) are anything to go by, there’s a lot of work still to be done.
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“Calling all creators”The time has finally come. Gamestop has put out the call for NFT applications from developers. Are you ready?
- Looks like the Gamestop NFT marketplace is really happening. The company has updated its website, allowing users to submit requests to become NFT creators.
- There’s not much more info out there, so we still don’t know how it’s going to work – or whether, as rumored, Loopring will be the platform.
- The application form is pretty detailed though, suggesting that it might not be an “open to all” platform like OpenSea or Rarible.
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Meme stock miseryAn agitated market sees investors flock to safer bets, sending meme stocks stumbling on Monday.
- GameStop lost nearly 14% to hit its lowest point since March, and AMC (AMC) tumbled over 15% to levels unseen since its massive May short squeeze.
- A Bloomberg-tracked list of 37 retail trading faves dropped 5.5% on Monday to its lowest point in seven months, after losing a quarter of its value in the last three weeks alone.
- Wednesday’s Fed meeting is making people nervous. It’s expected to speed up its tapering timeline and investors are ditching risky bets before that happens.
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