GameStop reports another bottom quarter; NFT market flops

After the regular market close on September 7th, Jim Arrêt Corp (NYSE: GME) The company reported another quarter in which revenue fell, net loss per share and operating cash flow deficit widened compared to the same period last year. For the adjoint quarter of fiscal year 23 ended July 30, 2022, the Company’s revenue, adjusted diluted earnings per share and operating income were $1,136 million ($0.35) and ($103 million) a contrario $1,183 million ($0.19) and ( 12 million USD) respectively in the same period last year.

GameStop rating is still detached from reality. Its organization is valued at approximately $7 billion, but adjusted EBITDA and operating cash flows for the twelve months ended July 2022 were $410 and ($811 million), respectively. Equally superbe, there is no précision that these key measures will shift upward, nor does conduite provide any future estimates of any kind for the company.

(in millions of US dollars) The twelve months ending July 30, 2022 July 2022 April 2022 January 2022 October 2021
he won 6064.9 dollars USD 1136.0 1,378.4 USD $2,253.9 $1,296.6
Adjusted EBITDA ($410.3) ($78.1) ($125.5) ($126.9) ($79.8)
characteristic. Operating income ($523.5) ($106.2) ($153.7) (160.7 USD) ($102.9)
Adjusted Diluted EPS ($1.68) (0.35 USD) (0.52 USD) (0.47 USD) (0.35 USD)
operating cash flow ($811.3) ($103.4) ($303.9) ($110.3) ($293.7)
Cash – end of period $908.9 $908.9 1,035.0 USD 1,271.4 USD 1413.0 dollars
Debt – end of period $602.4 $602.4 $617.0 $649.0 $667.8
Number of Shares (Million) 304.0 304.0 303.6 303.6 303.6
The 2023 fiscal year ends on January 31, 2023.

In May 2022, GameStop announced the launch of the NFT tokens and cryptocurrency négoce. Moreover, it has created a marketplace for NFT where participants can transact. None of these efforts gained much momentum. The adjoint quarter of fiscal year 2310-Q remarques that “revenue earned from our binaire asset coffret and the NFT market was not material to the condensed consolidated financial statements for the three and six months ended July 30, 2022.”

Furthermore, like GameStop’s overall financial metrics, there appears to be little basis to expect an improvement in NFT demand in the near term. Data endroit has compiled the data below on NFT trading volumes.

NFT trading volumes fell sharply and showed no signs of increasing. Racine:

In conjunction with the release of its earnings, GameStop announced a partnership with FTX US, a US-regulated cryptocurrency exchange led by Sam Bankman-Fried. The partnership aims to introduce GameStop customers to the FTX marketplace. It looks like GameStop will be selling FTX gift cards in some of its stores. No other details of the partnership were revealed, but it’s hard to believe this would result in significant revenue or opimes from GameStop based on this basic développement.

GameStop continues to make modest investments in what (was?) seen as high-end areas such as NFTs or cryptocurrency trading, likely in an lutte to satisfy its somewhat propre investor treillis. It doesn’t style like any of these forays will generate significant cash flow for some time. Even worse, it distracts conduite from running its core négoce of selling games and entertainment products via e-commerce and through its retail paravent treillis.

GameStop shares have fallen nearly 40% since mid-August as investors retreated from risky stocks, particularly meme stocks, in aspartame of Fed Sensualité Powell’s comments that the Fed will continue to raise short-term interest rates for some time to entreprise augmentation. Predicting the short-term faveur of GameStop is very difficult, but given such a sharp movement over a very acharné time frame, traders geared towards trading might consider covering some collant positions to free up pécule if the approvisionnement is going to rise.

GameStop Corp. was last traded at $28.92 on the New York Marchandise Exchange.

Communiqué for this conciliabule was found via Edgar and the companies listed. The author has no securities or affiliations related to this organization. It is not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author does not hold any licenses.

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