Home Headline News GameStop E-Commerce is Working
trading

GameStop, reported lower-than-expected earnings Tuesday but showed progress in building e-commerce sales.

The company, which currently trades at some ten times its value at the start of the year, reported fourth-quarter profits of $80.5 million, nearly four times the level in the year-ago period.

Revenues fell 3.3 percent to $2.1 billion

Both the earnings and revenues lagged analyst expectations. Shares of the volatile equity initially rallied after the report in after-hours trading, then tumbled before moving back into positive territory.

The company, which has been building up its e-commerce business as the pandemic has shuttered retail stores, said global e-commerce sales jumped 175 percent compared with the year-ago period.

Digital sales now account for more than one-third of net sales, up from a 12 percent share in the year-ago period.

GameStop said it was continuing to suspend earnings forecasts amid the uncertainty of the coronavirus pandemic.

GameStop’s unlikely rise on Wall Street in 2021 results from a frenzy of buying interest from retail investors who exchanged advice and opinions on a popular forum at the Reddit website and came to the company’s defense when it was targeted by “short sellers” betting on a fall in value.

As a further testament to the company’s following, the company’s official earnings conference call reached capacity and was unable to take additional listeners.

Analysts widely view the company’s jump in valuation this year as unmoored from its actual performance.

Still, some investors are hopeful about GameStop’s prospects given several major staffing shifts, as well as new board members committed to revamping the strategy.

Investors are keen to see the influence of activist investor Ryan Cohen, a co-founder of online pet products shop Chewy who joined the board earlier this year.

On Tuesday, the company announced that Jenna Owens had joined GameStop as chief operating officer after earlier executive stints at Amazon and Google.

Executives did not take questions from analysts during the conference call, where Chief Executive George Sherman said he is focused on “transforming into a customer obsessed technology company that delights gamers.”

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.