- GameStop Corporation is estimating a reduced loss in EPS in the upcoming earnings report.
- Investors have lost interest due to disappointing quarterly earnings previously.
- GME stock was trading at the market value of $27.52.
Have Investors Already Lost Their Interest?
As the GameStop Corporation’s (NYSE: GME) third quarter earnings are about to be unveiled, GME stock investors are eagerly waiting for the company to give some fruitful news. Previous quarter showed better than the estimated EPS, which lowered the loss from company shares. They are expecting some reduced loss in the earnings when the revelation will be made on December 7, 2022.
With the rise of virtual collectibles, GameStop is primarily focused on the physical gaming merchs. But the company has an NFT marketplace too which they launched in collaboration with ImmutableX this year. The figures show that the non-fungible token platform led the sales volume to surpass $5 Million in the opening week.
On one hand, traditional collectors are more into physical collections, but the NFT mania has topped the charts during 2021. Though the market went cold following the crypto winter, metaverse ecosystems remained intact despite the fact that tokens are considered as an essential element in digital spaces.
There’s no precise definition of metaverse to this date, still the industry mammoths including Meta (NASDAQ: META), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA) and more are betting on it. Investment bank Citi thinks that the sector can grow to become a $13 Trillion industry. Many companies including Nike, Prada, Samsung and more have already forayed into this space.
GME Stock Price Analysis
Current chart shows a sideways momentum in GME stock since September 2022. The previous earnings reports showed rising investors’ interest, but the disappointing financials led the interest to decline during the Q2 2022 report. The company is expecting reduced loss in EPS upon the upcoming earnings report in contrast to the former.
Analysts are not expecting the GME stock to perform well in the future. Some even think that it can plunge to as low as $5 in the next 1 year. This explains the strong sell ratings of some experts in the market. Still, the company can do a lot more considering the growth in the gaming industry.
The gaming industry registered a massive growth during the pandemic. Q2 2021 saw consumer spending rising to $14 Billion in the US alone and the sector generated over $180 Billion in revenue during the year. With the improved gaming functionalities, these figures may increase even more in the future.
Latest gaming consoles are grabbing the attention of gamers. According to a report Sony’s PS4 consoles have sold 116.5 Million units to this date followed by Switch and 3DS with 91.4 Million and 75.9 Million.
Source: https://www.thecoinrepublic.com/2022/12/05/why-are-the-investors-remaining-aloof-on-gme-stock/