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GameStop down after earnings

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Meme-stock stalwart GameStop slips after hours following its Q2 earnings release.

Video Transcript

SEANA SMITH: I want to get over to Ines Ferré because GameStop is out with its earnings report. Shares under a bit of pressure here after hours. Ines, what can you tell us?

INES FERRÉ: That's right, GameStop reporting net sales of $1.18 billion. The Street had estimated $1.12 billion. So that's a beat. But as far as adjusted loss per share, that's coming in at $0.76 a share. The Street was expecting a loss of $0.67 a share.

Now, we will wait to see here what management says on the conference call, on the earnings call. You'll recall the last two they were not taking Q&A. So that has frustrated analysts. There's only a handful of analysts on this stock right now, about three.

But what they're waiting to hear is about more details on that digital transformation strategy that the company is undergoing under activist investor Ryan Cohen, who's now chairman of the board. He's really shaken things up with some C-suite shakeups over the last few months. And analysts are really wanting to know more about that digital transformation strategy.

ADAM SHAPIRO: You know, in the article that you wrote in anticipation of all of this, you pointed out that digital strategy, that it's almost a revolution going on here. But it's like trying to fight the Revolutionary War for the United States 200 years late. Isn't GameStop just way too late to this digital transformation?

INES FERRÉ: Well, that's what Wedbush's Michael Pachter says, basically, that the train has really passed thew by. He said look, Cohen had a great run with Chewy, he's co-founder of Chewy, did really well there. But as far as this industry is concerned, he doesn't really see a brilliant plan. He says if he did have a brilliant plan he would have told us all months and months ago.

SEANA SMITH: All right, Ines Ferré, thanks so much. Again, GameStop, a name to keep in mind. Shares under pressure right now, off just around 0.6%.