GameStop reports larger Q3 loss as revenue falls short

December 7, 2022 4:38 PM EST

By Yasin Ebrahim – GameStop (NYSE: GME) reported Wednesday quarterly results that missed Wall Street expectations on both the top and bottom lines as the video game retailer continues efforts to turn around its business.

GameStop rose 1% in after-market trading following the report.

The company reported a third quarter loss of $0.31 on revenue of $1.19 billion, missing estimates for a loss of $0.28 a share on revenue of $1.35B. That compared with a loss of $0.82 on revenue of $1.30B a year earlier.

GameStop, one of the original so-called meme stocks, is in the midst of a transformation that has included job cuts and a foray into the world of cryptocurrency and nonfungible tokens, or NFTs. But these initiatives have yet to have a meaningful impact at a time when its core video game business remains "challenged," Wedbush said in a recent note.

"GameStop’s transformation efforts have missed the mark so far, leaving it to rely on a challenged core business," Wedbush added.

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