What’s next for GameStop shares?
The brick and mortar videogame retailer’s shares rallied strongly despite lower sales and earnings in its latest reporting quarter.
- GameStop Corp (NYSE: GME) share price jumped up 10% on Thursday (8 September)
- The videogame retailer’s Q2 sales fell 4% year-on-year
- It also announced a new crypto partnership
- Keen to trade GME shares? Open an account with us to start today.
GME stock price: what’s the latest forecast?
GameStop shares rallied as much as 10% after the videogame retail chain reported its second quarter (Q2) results and a new cryptocurrency partnership.
The stock is down over 40% in the last one month, and down over 30% year-to-date. It experienced an eight-day losing streak at the end of August 2022, matching the one in January this year.
Wedbush’s equity research team previously lowered their price target from US$30 to US$7.50 while keeping a rating of ‘underperform’ on GME shares.
The price target equates to a further 71% downside potential from the meme stock’s last traded price of US$26.25 a share.
How did GameStop fare in Q2 2022?
GME saw Q2 2022 sales fall to US$1.136 billion from US$1.183 billion a year ago.
Losses also widened to US$0.36 a share this year from US$0.21 during the same period in 2021. This was below FactSet analyst estimates of US$0.42 on sales of US$1.27 billion.
This was also GameStop’s sixth consecutive quarterly loss.
GameStop’s inventory also came in at US$734.8 million at the close of the quarter, compared to $596.4 million at the close of the prior year’s second quarter. This ‘reflected the company’s focus on maintaining adequate in-stock levels to meet customer demand and offset lingering supply chain headwinds’.
During the quarter, the company also launched its own non-fungible token (NFT) marketplace. The platform allows gamers, creators, collectors and others to buy, sell and trade NFTs.
The company also announced a new partnership with crypto platform FTX on the same day. ‘The partnership is intended to introduce more GameStop customers to FTX’s community and its marketplaces for digital assets,’ the company said in a press release.
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