• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

GameStop shares subdued on lack of rejig details

September 9, 2021 by David Barret Leave a Comment

September 9, 2021

By Medha Singh and Sagarika Jaisinghani

(Reuters) -Shares in GameStop Corp carved out a tiny gain on Thursday after dropping as much as 10.5% earlier in the session even as the video game retailer’s silence on its turnaround plan led its army of individual investors to question the meteoric rise in its share price this year.

The company posted a 25% jump in quarterly sales, but its executives gave no new details for a plan to refashion itself from a mostly brick-and-mortar retailer. The company recently raised more than $1 billion in fresh equity.

GameStop shares closed up 0.2% at $199.18 after touching a low of $178 during the session. Thursday’s close was more than 10 times its close of $18.84 at the end of 2020. But it compared poorly with a $483 peak reached in January, when the stock was seeing wild swings at the height of a battle between small-time traders and Wall Street hedge funds.

Thursday marked the stock’s first time finishing in positive territory in the session after an earnings update after declining the last four times. And GameStop had fallen close to 30% after its previous two updates.

“This is the third time that investors have expected GameStop management to articulate its strategy and the third time the company failed to do so,” wrote Wedbush analyst Michael Pachter, who rates it “underperform” with a $50 price target.

“We think that GameStop will continue to promise and to fail to deliver a strategy to its investors, and will seek ways to increase online sales while it holds investors at bay.”

Going into the first post-earnings conference call by new Chief Executive Matt Furlong, investors had been looking for details on efforts by Chairman Ryan Cohen to focus on e-commerce.

But the call lasted less than 10 minutes and “the CEO did not mention consoles or video games and, given that the company completely relies on them, it was quite remarkable,” said Neil Campling, global technology, media and telecommunications analyst at Mirabaud Securities.

GameStop faces competition from Microsoft Corp’s Xbox, which is building its own streaming devices for cloud gaming to reach gamers on any television or monitor without the need for a console.

Net sales in the second quarter jumped to $1.18 billion, but GameStop also posted a bigger-than-expected adjusted loss of 76 cents per share.

Social media forums were abuzz with individual investors complaining about the lack of disclosure about GameStop’s strategy.

“I understand Cohen’s belief in keeping your strategy close to your chest so the competition won’t know what you’re doing, but I’d like to learn something,” one user wrote on Reddit’s WallStreetBets. “Regardless, I’m not selling.”

(Reporting by Sagarika Jaisinghani, Medha Singh, Nivedita Balu in Bengaluru, Sinéad Carew in New York ; Editing by Shounak Dasgupta, Arun Koyyur and Jonathan Oatis)

Source Link GameStop shares subdued on lack of rejig details

David Barret
David Barret

Related posts:

  1. UK card spending slips to 93% of pre-COVID level – ONS
  2. Your next smartwatch could come with not one, but two cameras on board
  3. GM to cut North American production, citing chip shortage
  4. Fujifilm confirms it’s working on high-resolution mirrorless cameras

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • The First Ever Full Asteroid History: From Its Doomed Discovery To Collecting Its Meteorites
  • World’s Oldest Pachycephalosaur Fossil Pushes Back These Dinosaurs’ Emergence By 15 Million Years
  • The Hole In The Ozone Layer Is Healing And On Track For Full Recovery In The 21st Century, Thanks To Science
  • First Sweet Potato Genome Reveals They’re Hybrids With A Puzzling Past And 6 Sets Of Chromosomes
  • Why Is The Top Of Canada So Sparsely Populated? Meet The “Canadian Shield”
  • Humans Are In The Middle Of “A Great Evolutionary Transition”, New Paper Claims
  • Why Do Some Toilets Have Two Flush Buttons?
  • 130-Year-Old Butter Additive Discovered In Danish Basement Contains Bacteria From The 1890s
  • Prehistoric Humans Made Necklaces From Marine Mollusk Fossils 20,000 Years Ago
  • Zond 5: In 1968 Two Soviet Steppe Tortoises Beat Humans To Orbiting Around The Moon
  • Why Cats Adapted This Defense Mechanism From Snakes
  • Mother Orca Seen Carrying Dead Calf Once Again On Washington Coast
  • A Busy Spider Season Is Brewing: Why This Fall Could See A Boom Of Arachnid Activity
  • What Alternatives Are There To The Big Bang Model?
  • Magnetic Flip Seen Around First Photographed Black Hole Pushes “Models To The Limit”
  • Something Out Of Nothing: New Approach Mimics Matter Creation Using Superfluid Helium
  • Surströmming: Why Sweden’s Stinky Fermented Fish Smells So Bad (But People Still Eat It)
  • First-Ever Recording Of Black Hole Recoil Captured During Merger – And You Can Listen To It
  • The Moon Is Moving Away From Earth At A Rate Of About 3.8 Centimeters Per Year. Will It Ever Drift Apart?
  • As Solar Storm Hits Earth NASA Finds “The Sun Is Slowly Waking Up”
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version