GameStop posted EPS of $0.00 in its fiscal third quarter of 2023. In the same period last year, the retail chain for computer games and entertainment software lost $0.31 per share. Analysts had now expected the company behind the well-known meme stock to narrow its loss to $0.083 per share.
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GameStop’s revenue for the most recent quarter was $1.08 billion, up from $1.19 billion in the same period last year. The experts had previously expected that quarterly sales would now be $1.18 billion.
GameStop missed expectations due to strong competition and weak demand. According to the information, profits fell by almost 24 percent to $296.5 million. Ongoing inflation and high borrowing costs are putting pressure on players’ purchasing mood. “While weak sales in the third quarter were expected…the increasing loss of market share to mass retailers and e-commerce giants like Amazon will continue to be an uphill battle for GameStop,” said Third Bridge analyst John Oh. GameStop is one of the so-called “meme stocks” that small investors encourage each other to buy in relevant Internet forums such as Reddit. In the past, this has also caused problems for hedge funds that speculated on falling prices with short sales.
In trading on the NYSE on Thursday, GameStop shares ultimately rose by 10.26 percent to $16.36. However, significant losses were still observed before the trading session, but the shares gradually made up for them in regular trading. As the game progressed, the GameStop shares continued to climb.
Editorial team finanzen.net / Reuters
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