GameStop Shares Rise Despite Q3 Earnings Miss

GameStop Shares Rise Despite Q3 Earnings Miss

GameStop (NYSE: GME) reported a decline in third-quarter sales and a dip in its cash pile as it aims to further expand its digital presence. Nevertheless, the company’s shares rose approximately 7%, after having declined 4.8% on Wednesday.

The video game retailer reported an earnings loss of USD0.31 per share, compared to the expected loss of USD0.28. Revenue amounted to USD1.19 Billion, lower than analysts anticipated USD1.35 Billion.

“We’re seeking to transform a legacy brick-and-mortar business that was on the brink of bankruptcy into a retailer that meets customers’ needs through our stores, e-commerce properties, and emerging sales channels,” CEO Mike Furlong told investors on a conference call late Wednesday. “This path carries risk and is taking time, but it is the path we are on.”

GameStop is slowly developing an online presence as it builds out its non-fungible tokens or NFT marketplace. It hopes that its GameStop Wallet, which permits users to store, send, receive and use NFTs and cryptocurrencies throughout decentralized apps, will be the foundation of its digital asset strategy.

“Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not, and will not, risk meaningful stockholder capital in the space,” Furlong said.

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