GameStop shares jump on smaller-than-expected loss, deal with crypto marketplace FTX
(Reuters) -GameStop Corp on Wednesday reported a smaller-than-expected quarterly loss and a partnership with crypto market FTX US, sending the online game retailer’s shares up 13% after the bell.
GameStop launched a digital pockets earlier this yr that it stated would allow transactions in a market it’s constructing for avid gamers and others to purchase, promote and commerce non-fungible tokens, or NFTs.
The corporate will begin promoting FTX present playing cards at a few of its shops as a part of the FTX deal, monetary phrases of which weren’t disclosed.
Final yr, GameStop was on the heart of a social media-fueled buying and selling frenzy that despatched its shares hovering.
The corporate overhauled its administration in an effort to reverse years of languishing gross sales and has been bolstering its e-commerce capabilities as on-line procuring accelerated in the course of the pandemic.
Nonetheless, GameStop’s outcomes come at a time when gaming firms are going through a slowdown in demand for video video games from pandemic highs, elevating doubts about their capacity to climate an financial downturn.
GameStop’s income within the second quarter fell 4% to $1.14 billion.
On an adjusted foundation, the corporate misplaced 35 cents per share, in contrast with estimates of a lack of 38 cents, in response to Refinitiv knowledge.
GameStop’s shares closed at $24 on Wednesday and have been buying and selling at $27.35 after the bell.
(Reporting by Eva Mathews in Bengaluru; Enhancing by Shounak Dasgupta)
