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.

GameStop’s board voted in favor of a 4-for-1 stock split on Wednesday. The decision won’t affect the value of the investment for the current shareholders, but the number of their shares will increase in a way that they’ll receive three extra shares for every share they now own. On the other hand, owning GameStop stock (GME) will become much easier for the new investors as the shares will be four times cheaper. The stock split will become effective on July 22.

GME closed at $117.43 on Wednesday before surging to $134.81 at one point following the stock split announcement. It later settled at 133.76 in extended trading, which marked a 14% daily increase.

Stock splits have recently become quite a popular trend, especially among tech companies. For example, e-commerce giant Amazon and Google’s parent company Alphabet had 20-for-1 splits in June while electric car maker Tesla announced a 3-for-1 stock split earlier this year. There are several reasons why companies decide to do a stock split, but probably the most common one is to make shares available to individual investors and increase the demand. 

The post GameStop Shares Surge After Stock Split Announcement 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.

GameStop’s board voted in favor of a 4-for-1 stock split on Wednesday. The decision won’t affect the value of the investment for the current shareholders, but the number of their shares will increase in a way that they’ll receive three extra shares for every share they now own. On the other hand, owning GameStop stock (GME) will become much easier for the new investors as the shares will be four times cheaper. The stock split will become effective on July 22.

GME closed at $117.43 on Wednesday before surging to $134.81 at one point following the stock split announcement. It later settled at 133.76 in extended trading, which marked a 14% daily increase.

Stock splits have recently become quite a popular trend, especially among tech companies. For example, e-commerce giant Amazon and Google’s parent company Alphabet had 20-for-1 splits in June while electric car maker Tesla announced a 3-for-1 stock split earlier this year. There are several reasons why companies decide to do a stock split, but probably the most common one is to make shares available to individual investors and increase the demand. 

The post GameStop Shares Surge After Stock Split Announcement appeared first on theprimarymarket.com.