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Game Station’s Q2 loss was smaller than expected and announced a partnership with FTX: stock price soared 12%

  • joy
  • 2022-09-08 13:58:06
  • 158 read
  according to reports, on Wednesday local time, the US GameStop Corporation (GameStop) released its second-quarte...

  according to reports, on Wednesday local time, the US GameStop Corporation (GameStop) released its second-quarter earnings report, the loss was smaller than Wall Street analysts expected. The company also announced a partnership with U.S.-based digital derivatives exchange FTX US to expand opportunities in the cryptocurrency market. These two positive news caused Game Station's share price to surge 11.69% in the after-hours trading session of the U.S. stock market.

  Game Station's main business is the retail of game software in brick-and-mortar stores. According to the above cooperation agreement, the company will sell FTX gift cards in some brick-and-mortar retail stores. The financial details of the partnership were not announced by GameStop.

  Earlier this year, GameStop launched a digital wallet. The company is developing a trading platform for gamers and others, where users can use the digital wallet to buy and sell various NFTs (non-fungible tokens).

  Michael Pachter, an analyst at Wedbush Securities in the United States, commented that the cooperation between Game Station and the FTX exchange will not bring substantial revenue and profits, but this is good news. Front.

  Last year, U.S. retail investors launched a “movement” of shorting Wall Street short institutions. Retail investors gathered on some social media to buy specific stocks. Game Station became the protagonist of this round of online movement, and stock prices rose wildly.

  After that, GameStop adjusted its management and prepared to reverse years of sluggish sales. With the popularity of e-commerce during the new crown epidemic, Game Station is also preparing to explore business opportunities for online sales.

  GameStop reported its latest earnings on Wednesday, with an adjusted loss of 35 cents a share in the second quarter, below Wall Street analysts' average estimate of a loss of 38 cents a share.

  In the second quarter, GameStop fired Chief Financial Officer Michael Recupero and announced a "1 for 4" stock split, hoping to attract retail investors in the United States to trade its shares.

  At present, the macro-industrial environment faced by Game Station is not ideal. Game companies have enjoyed booming sales during the new crown epidemic, but now they are starting to experience weak player demand, and the outside world doubts whether the game industry can withstand the economic downturn in the future.

  Shares in GameStop tumbled 4.3 percent to $24.04 in intraday trading on Wednesday. With the release of the financial report and the announcement of the cooperation, the company's stock price soared. As of press time, the latest increase in the stock price was 11.69%, and the stock price rose to $26.91.

  Wedbush Securities analyst Pat said that some investors had previously worried that GameStop Chairman Ryan Cohen might sell their shares, but Cohen did not sell, and the stock price rose sharply on Wednesday. It also shows that investors are relieved.


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