GameStop reports net earnings loss, hints at NFT marketplace launch
Yahoo Finance Live anchors discuss quarterly earnings for GameStop as well as details surrounding the electronic retail company’s NFT marketplace launch.
Video Transcript
- Also everyone, we've got to keep a tab on shares of GME. They are lower here this morning. Down by about 1 and 1/2 percent in pre-market trading.
The company reported first quarter earnings, which revealed a wider than expected net loss of over $2 a share. The company once again failed to provide an outlook for the rest of the year, but did follow up its recent NFT wallet unveiling with the announcement of an NFT marketplace, which is set to launch in Q2 for the gaming retailer, I might add.
- Right. Listen, now that's not what the earnings call. I put this out this morning. This is a joke. This whole GameStop story is turning into a big fat joke.
I don't know what CEO Matt Furlong is doing at this company. This was his shortest earnings call as CEO of GameStop. 7 minutes, 41 seconds. And the call before this wasn't exactly great. It was a 10 minutes in 5 seconds or something like that. Zero details on what they plan to do and I know this is what they're trying to do over at GameStop just they don't want to lay out their master plan on how they're going to change the universe and send their stock price, maybe up to $700 a share.
But at some point, as an executive of a public company, you have to come out here and say, this is what we're going to do. These are our numbers. Here's how we're going to execute. Take some questions from the Wall Street community try to get more analysts out there covering the stock.
This is another embarrassing performance by a guy, Brad, that made $17 million last year despite only being six months on the job. What are you doing all day?
- Well, it also begs the question of when we think about the Wall Street community or in the community of investors here when you have that low analyst coverage, and it's really more the retail investor out there that is so focused on GameStop, do the fundamentals matter?
I would still argue, Yes, the fundamentals do matter. If you're looking at this company and the vision and how they're using the money, even taking into account some of at the market equity offerings, which quite frankly, if you are an investor, you should care about because that dilutes the shares that you have.
And so with all that considered, how they're using that money when they went out to the markets and introduce those offerings in 2021, now in 2022, focusing on the NFT landscape, which we know has hit a headwind, a major hurdle in the road here as valuations for many of those non-fungible tokens have decreased substantially from the fanfare that we had seen even in 2021.
At this point in time, I wonder when that starts to actually drive revenue for them and produce a profit at the end of the day
- Good luck with that. At least they teased. At least they told us they're coming out with NFT marketplace in the second quarter. No projections, no anything else and what this might even look like. They just dropped it in their 7 minute and 41 second earnings call.
And I think if you are a believer, this ongoing believer in a GameStop on the Reddit thread that at some point, you have to question why are you in fact, invested in a company that still operates thousands of stores, terrible locations, really bad lease rates, and you're getting no strategy from an executive team, a well-paid executive team, with many years of experience in Amazon? You're putting your life savings in this company and you're getting nothing from management. Just another quarter of operating losses.
- I mean, at the end of the day, it's really--
- I know I'm hot. I know I'm hot on GameStop but it really bothers me.
- It's such a moment-- it has been such a momentum trade where it's really just going against the shorts. And so with the short interest that's pulled back tremendously, is there still that same fanfare that dives head into GameStop?
- Oh, there is. I'm going to go to my Twitter feed and I can guarantee I'm just getting absolutely shredded. And I'm sorry I'm going to bring you into it too as well. I mean, welcome to the cesspool with me.
