GameStop Q3 results: ‘I’m looking in the short-term for downside’
Advertisement
- GameStop reports weaker-than-expected results for its fiscal Q3.
- Joe Tigay of Equity Armor Investments shares his outlook on GME.
- GameStop stock is currently down over 50% versus its YTD high.
Follow Invezz on Telegram, Twitter, and Google News for instant updates >
GameStop Corp (NYSE: GME) is trading slightly up in extended trading even though it reported its seventh consecutive quarterly loss after the bell.
Advertisement
Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.
What to expect from the GameStop stock
Copy link to sectionVersus its year-to-date high, GameStop stock is down more than 50% at writing. Unfortunately (for the meme stock fanatics), though, the possibility of another short squeeze in this name is rather slim. Speaking on TD Ameritrade Network, Joe Tigay of Equity Armor Investments said:
Advertisement
The short interest is there but it’s not the same we saw two and half years ago. It’s not going to be one of those catalysts that take the stock to the moon.
His dovish view is in line with Wall Street that has a consensus “underweight” rating on the GameStop that’s left with just over $1.0 billion of cash, equivalents, and marketable securities only.
If it’s going bankrupt, it’ll be less than [a dollar]. What’s the future for it? I don’t see the narrative. We’re not in a good environment for companies that are not making money. I’m just looking on the short-term for the downside.
Notable figures in GameStop’s Q3 earnings report
Copy link to section- Lost $94.7 million versus the year-ago $105.4 million
- Per-share loss narrowed significantly from $1.39 to 31 cents
- Loss was the same even when adjusted for nonrecurring items
- Sales tanked 9.0% on a year-over-year basis to $1.186 billion
- Consensus was 28 cents of loss on $1.345 billion in sales
GameStop ended the quarter with $1.131 billion worth of inventory that was roughly the same as last year, as per the earnings press release.
In September, GameStop had partnered with FTX – the now bankrupt crypto exchange as Invezz reported here. It’s now winding down that partnership and will be offering refunds to its affected customers.
Advertisement
Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.