GameStop stock tumbles amid tough Q3 quarter, digital repositioning
Yahoo Finance's Ines Ferre discusses GameStop stock tumbling after a wider-than-expected loss in Q3.
Video Transcript
AKIKO FUJITA: Let's turn our attention to one stock that is seeing heavy pressure in the session here. That is GameStop, down more than 7% in the session on concerns about widening losses in the third quarter. Let's bring in Yahoo Finance's Ines Ferre, who has been watching those numbers for us. Ines, it is a ugly day for the stock.
INES FERRE: Yeah, that's right. Right now, we're looking at GameStop that's down about 7%. This is after the company reported its third-quarter results with adjusted loss per share coming in at $1.39. The Street was expecting a loss of $0.52. Also, revenue came in at $1.3 billion. That was a beat, though, because the Street was expecting revenue of $1.19 billion.
And also, the company talked about opening new offices in Boston, in Seattle, in tech-heavy areas. However, few details really have been given so far about the company's digital strategy going forward. The conference call was only about eight minutes long. Matt Furlong-- he's an Amazon veteran who was put in the CEO position over the summer. He was the one giving the conference call. There were no analyst questions. And by the way, there's only three analysts that are right now covering the stock anyways.
But there was something said during that conference call that retail traders are hanging on to, and that is that the company said-- that Matt Furlong said that the company is exploring emerging opportunities when it comes to blockchain, NFTs, and Web 3.0 gaming. Now, no more details other than that were given about that. And I did reach out to one retail trader, Matt Kohrs, who's a YouTube host who's been on the show before, and he told me that he wants more information on the company's NFT platform. This is something that had been speculated prior to this because there were job postings back in October that were asking for NFT platform engineers, so retail traders were speculating that something would be announced.
But Kohrs has said also, look, he as a shareholder would want more details, more information, about the company's strategy going forward. He is still long, though, on the company. He still very much believes in GameStop. But as far as, really, when you step back and just take a look at all of this, each quarterly result that the company announces is still a bit of a black box as far as what the details are going forward.
And retail traders are the ones that have really held up the stock. I mean, I'm just looking at my YFi Interactive board here. And if you just take a look-- and we'll pull up the year-to-date chart-- I mean, this stock was-- has not gone below $100 since February. It's been in the range of around $150 to $220 a share for months now. So definitely, retail traders are the ones that are still holding the stock at this level.
ZACK GUZMAN: That does still look like a pretty interesting floor to watch there, though, if we-- if we can hold that or if it breaks through. We'll see what happens there. Ines Ferre, appreciate you bringing us the latest.
