GameStop recently posted its biggest quarterly revenue drop in two years. This comes as the entire gaming industry has been facing a downward trend throughout 2022.
For the three-month period that ended on October 29th, GameStop saw net sales fall by 8.5% to $1.19 billion. This represents an almost $200 million drop-off when compared to quarterly projections from industry analysts. Additionally, the company’s adjusted loss per share was two cents higher than originally predicted.
Overall, the third quarter was not kind to the video game space. Software sales fell 19% during this period. The hardware and accessories sector also saw a 6.4% decline in sales.
Over the last 12 months, GameStop’s stock has fluctuated greatly. However, it’s clear that the organization is trending down. The company’s stock went from $38.91 on December 13th, 2021 to $20.39 as of 11:30 AM EST on December 15th, 2022.
The Profit‘s Take:
It seems Ryan Cohen hasn’t been able to spark the turnaround GameStop was hoping for. In fact, I would say Ryan Cohen hasn’t really done ANYTHING for the company. I’m surprised they didn’t try to do anything new or innovative with all the hype and attention they had. They should have taken crazy risks because they HAD to know their core business was going to zero. Every short seller knew it was going to zero. The market knew it was going to zero. The only thing they did was a little crypto, which was a dumb thing to do. It is incredibly disappointing. Any retail investor that bought this stock deserved to lose money. It didn’t feel like there was ANY chance for this business to turn things around. You could argue GameStop stores are even more depressing now than they were two years ago. They’re just more rundown now.
(All information was provided by Yahoo! Finance and Yahoo! News)
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