GameStop (GME.US) stock surged over 9.0% on Thursday following the news that the video game retailer entered a new partnership with crypto exchange FTX, which overshadowed the weak quarterly results.
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In Q2, sales plunged to $1.14 billion from $1.18 billion year prior, while losses increased to $108.7 million, or 36 cents per share, compared with a loss of $61.6 million, or 21 cents, last year.
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GameStop’s results cannot be compared with estimates because too few analysts cover the company. Company also did not issue any financial guidance since the beginning of the pandemic.
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Company recorded lower quarterly sales and higher losses, as its cash pile shrank and inventory increased.
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GameStop also unveiled a new business partnership with FTX, one of the world's biggest cryptocurrency and derivative exchanges, that will "introduce more GameStop customers to FTX’s community and its marketplaces for digital assets."
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"In addition to collaborating with FTX on new ecommerce and online marketing initiatives, GameStop will begin carrying FTX gift cards in select stores," the GameStop said.
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GameStop, which aims to move from brick-and-mortar sales towards online, reduced staff costs in order to create its NFT marketplace with Australian blockchain startup ImmutableX.
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Company expects that its GameStop Wallet, which allows users to store, send, receive and use both NFTs and cryptocurrencies across decentralized apps, will form the lynchpin of its digital asset strategy. So far It looks promising, as sales attributable to collectibles jumped from $177.2 million in Q2 of 2021 to $223.2 million in the most recent one.
GameStop (GME.US) stock rose early in session, however buyers failed to break above major resistance at $27.50, which is marked with 78.6% Fibonacci retracement of the upward wave launched in March 2020. As long as price sits below, another downward impulse towards the recent low at $19.70 may be launched. Source: xStation5
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