GameStop Q1 results: ‘it doesn’t feel like an index kind of stock’

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GameStop Q1 results: ‘it doesn’t feel like an index kind of stock’

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By:

Wajeeh Khan

on
Jun 1, 2022

GameStop Corp reports its financial results for the first quarter.

Ritholtz’ Josh Brown comments on GME on CNBC’s “Closing Bell”.

Shares of the video game retailer are up 3.0% in after-hours.

GameStop Corp (NYSE: GME) reported narrower-than-expected loss for its fiscal first quarter on Wednesday. Shares are up more than 3.0% in after-hours trading.

Notable figures in GameStop Q1 report

Lost $158 million in fiscal Q1 that translates to $2.08 per share.This compares to the year-ago loss of $67 million or $1.01 a share.Sales jumped 8.0% to $1.38 billion, as per the earnings press release.Consensus was for $2.49 of per-share loss on $1.32 billion in sales.At $918 million, inventories were up 61% on a year-over-year basis.

According to the video game retailer, its keeping inventories up to offset supply constraints.


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Experts’ comments on GameStop

GameStop ended Q1 with $1.035 billion in cash and equivalents. Last week GameStop launched a digital wallet to store cryptocurrencies and NFTs. As per CNBC’s Steve Kovack:

Its heyday is over, that’s for sure. It seems like everyone’s hinging their hopes on this NFT thing that they haven’t really explained how it’ll work other than launching a wallet that only works in a web browser the other day.

The stock is still down 20% for the year. Discussing the Grapevine-headquartered company on CNBC’s “Closing Bell”, Ritholtz’ Josh Brown said:

I’m trying to figure out if it trades more with crypto than Nasdaq. It doesn’t really feel like it’s an index kind of stock. It doesn’t seem to have any real correlation to anything in the tech market per se.

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