Expenses fell by 21.2% to $357.1 million, largely resulting from lower labor costs as well as consulting services and marketing. Reduced labor costs were largely the result of GameStop’s exit from its operations in Austria, Ireland, and Switzerland.

Still, GameStop’s reduced expenses did little to quell worries about its declining revenue, particularly given the rising trends in video game purchases. “An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately,” Wedbush Securities analyst Michael Pachter observed, Pachter recommended that GameStop management think of new ways to drive store traffic.

The post GameStop Stock Plunges Following Slump in Revenue appeared first on theprimarymarket.com.

GameStop is expected to release its quarterly earnings report next week. Investors are betting on the impact of the company’s new CEO, Ryan Cohen, and hoping a surge of more than 50% with a $20 call option on December 8 being traded more than 20,000 times by Wednesday.

Meme stocks have rebounded lately amid expectations that the Federal Reserve is done with raising interest rates, which prompted traders to circle back to speculative investments.

“Speculation is back … and GameStop is ground zero for speculation,” said Steve Sosnick, chief strategist at Interactive Brokers, via Reuters.

GameStop stock has been down 38% year to date and dropped to $12.12 per share earlier in November. This has been their lowest point since February 2021 and more than 80% down from an all-time high of $81.25 in early 2021.

After a recent CEO change and a resurgence of interest in meme stock, GameStop shares experienced a steady rise. The stock started the week at $12.21 on Monday before climbing all the way to $16.25 close on Wednesday.

The post GameStop Shares Surge More Than 35% Ahead of the Earnings Report appeared first on theprimarymarket.com.

The video game and electronics retailer had a slight dip in net sales compared to the same period last year, going from $2.25 billion to $2.23 billion. However, the profits came at $48.2 million compared to a $147.5 million loss the year before.

GameStop’s return to profitability has a lot to do with the company’s efforts to cut costs, which is something they intend to continue doing in the future.

“Looking ahead, we’re aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,” CEO Matt Furlong said during an earnings call on Tuesday.

However, while the cost-cutting methods might be working for the company at the moment, most analysts agree this isn’t sustainable in the long run. The overall sentiment is that the company will have to find ways to remain profitable by actually increasing its sales.

After closing at $17.64 per share on Tuesday, the GameStop stock surged to the $26.76 mark early on Wednesday. This represents their highest price since late 2022. The company’s shares later stabilized at around $24 later in the day.

The post GameStop Has First Quarterly Profit in 2 Years, Sees Huge Stock Jump appeared first on theprimarymarket.com.

Expenses fell by 21.2% to $357.1 million, largely resulting from lower labor costs as well as consulting services and marketing. Reduced labor costs were largely the result of GameStop’s exit from its operations in Austria, Ireland, and Switzerland.

Still, GameStop’s reduced expenses did little to quell worries about its declining revenue, particularly given the rising trends in video game purchases. “An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately,” Wedbush Securities analyst Michael Pachter observed, Pachter recommended that GameStop management think of new ways to drive store traffic.

The post GameStop Stock Plunges Following Slump in Revenue appeared first on theprimarymarket.com.

GameStop is expected to release its quarterly earnings report next week. Investors are betting on the impact of the company’s new CEO, Ryan Cohen, and hoping a surge of more than 50% with a $20 call option on December 8 being traded more than 20,000 times by Wednesday.

Meme stocks have rebounded lately amid expectations that the Federal Reserve is done with raising interest rates, which prompted traders to circle back to speculative investments.

“Speculation is back … and GameStop is ground zero for speculation,” said Steve Sosnick, chief strategist at Interactive Brokers, via Reuters.

GameStop stock has been down 38% year to date and dropped to $12.12 per share earlier in November. This has been their lowest point since February 2021 and more than 80% down from an all-time high of $81.25 in early 2021.

After a recent CEO change and a resurgence of interest in meme stock, GameStop shares experienced a steady rise. The stock started the week at $12.21 on Monday before climbing all the way to $16.25 close on Wednesday.

The post GameStop Shares Surge More Than 35% Ahead of the Earnings Report appeared first on theprimarymarket.com.

The video game and electronics retailer had a slight dip in net sales compared to the same period last year, going from $2.25 billion to $2.23 billion. However, the profits came at $48.2 million compared to a $147.5 million loss the year before.

GameStop’s return to profitability has a lot to do with the company’s efforts to cut costs, which is something they intend to continue doing in the future.

“Looking ahead, we’re aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,” CEO Matt Furlong said during an earnings call on Tuesday.

However, while the cost-cutting methods might be working for the company at the moment, most analysts agree this isn’t sustainable in the long run. The overall sentiment is that the company will have to find ways to remain profitable by actually increasing its sales.

After closing at $17.64 per share on Tuesday, the GameStop stock surged to the $26.76 mark early on Wednesday. This represents their highest price since late 2022. The company’s shares later stabilized at around $24 later in the day.

The post GameStop Has First Quarterly Profit in 2 Years, Sees Huge Stock Jump appeared first on theprimarymarket.com.