GameStop (NYSE:GME), a retailer of video games, will release Q2 financial results on September 7 following the market close.
Consensus revenue estimates are $1.27B (+7.6% Y/Y) and -$0.41 (+146.1% Y/Y) for EPS. GME has outperformed revenue and EPS expectations for the past two years in 50% and 38% of the cases, respectively.
Consumer videogame expenditure fell 13% Y/Y in Q2. As the sector struggled with difficult comparisons and rising inflation constraining consumer spending fell 13% Y/Y in Q2. According to NPD Group data, hardware sales decreased by 1% while accessory sales decreased by 11%.
A 4-for-1 stock split was adopted by GME in July. According to Wedbush Securities, the split had little effect on the economy and post-split shares are still trading at levels unrelated to the company’s core competencies.
Data compiled by CoinDesk shows that since its introduction, GameStop’s NFT Marketplace has seen a trading volume of over 5,000 ETH and a value of over $7.2M.
According to Axios, GameStop terminated the employment of former CFO Michael Recupero and said that it would dramatically decrease its workforce. Chief accounting officer Diana Saadeh-Jajeh took over Recupero’s position.
The meme stock increased as a result of GameStop’s Q1 earnings. Jefferies recognized GME’s advancements in terms of improved fulfillment times, a deeper emphasis on the client, and competitive pricing.
In a pessimistic study for SA, SA writer Daniel Jones said that GameStop is fundamentally a shambles and that investors and speculators have grossly overvalued the company. With a 52-week trading range of $19.40-$63.92, GameStop, which has lost 34% of its value year to date, has been incredibly volatile. In the previous year, the stock underperformed the Dow Jones U.S. specialty retailers and S&P 400 consumer discretionary indices.
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