By Yasin Ebrahim
Investing.com – GameStop (NYSE:GME) reported Wednesday quarterly results that missed Wall Street expectations on both the top and bottom lines as the video game retailer continues efforts to turn around its business.
GameStop rose 1% in after-market trading following the report.
The company reported a third quarter loss of $0.31 on revenue of $1.19 billion, missing estimates for a loss of $0.28 a share on revenue of $1.35B. That compared with a loss of $0.82 on revenue of $1.30B a year earlier.
GameStop, one of the original so-called meme stocks, is in the midst of a transformation that has included job cuts and a foray into the world of cryptocurrency and nonfungible tokens, or NFTs. But these initiatives have yet to have a meaningful impact at a time when its core video game business remains "challenged," Wedbush said in a recent note.
"GameStop’s transformation efforts have missed the mark so far, leaving it to rely on a challenged core business," Wedbush added.