GameStop (NYSE: GME) has stated its strategy towards cryptocurrencies, which is to stop focusing on the sector once for all. The gaming retailer has reported a loss of over 94.7 million USD worth capital during the third quarter. This led the company to lay off a significant number of employees from the crypto assets department.
CEO of GameStop, Matt Furlong, during the earnings call on December 7th 2022, said that the company has proactively worked towards reducing the cryptocurrency exposure. This continued for over a year and now it does not hold any token.
In addition he said that the company is still going to continue the efforts to have a firm belief in the potential of the digital assets within the gaming world in the long-term. Neither the gaming firm had nor in future they are going to put the capital of their stockholders in the crypto space, given the risk involved.
Earlier TheCoinRepublic reported that in its third quarter earnings release, GameStop Corporation (GME) noted a drop in sales and its cash reserve also declined. The gaming firm, however, has been making efforts for several months to book some profitability. The company is also trying to revive their struggling business of brick and mortar.
Gamestop reported a net loss of about 95 million USD which became a quarterly loss for the seventh consecutive month.
The 6.77 billion USD worth market capitalization company reported a negative earnings per share (EPS) of 6.25 USD for GME stock. The optimism revolves around the stock given the company’s outlook for a digital world.
The GME stock daily technical chart has shown that the stock is witnessing a buying momentum following its Q3 earnings release. The stock price pulled back exactly from its support range of 21.57 USD. Now the price action for GME reflects that the bulls engulf the bears.
GME stock price showed the opposite of what was being expected after the earnings release declining several factors. Currently GME is trading at 24.79 USD after more than 11% upsurge in a day.
Disclaimer
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Source: https://www.thecoinrepublic.com/2022/12/09/gamestop-gme-stock-surges-11-following-q3-earnings/