Tiffany Hagler-Geard | Bloomberg | Getty Images
Investors are finally looking at GameStop’s principles following a Reddit trading rage earlier this year.
Here’s what the company did Tuesday after the clock.
- It released quarterly results that missed Wall Street’s estimates.
- In the latest uproar from the CEO, former former Amazon and Google CEO Jenna Owens has named her new chief operating officer.
- And in a hint of the transformation that is making investors excited about the stock, the company said global e-commerce sales rose 175% last quarter, accounting for more than a third of its sales during the period.
- GameStop also admitted in a document that it was considering selling additional shares.
The stock initially traded higher after the clock, but last by about 7%, while traders were likely to react to the news of the possible share sale, which many investors and analysts thought would be wise in light of the run-up to Reddit fired.
“Since January 2021, we have been evaluating whether we want to expand the ATM program (on the market) and whether we will possibly sell our Class A ordinary shares during the fiscal 2021 under the increased ATM program, mainly to to finance the acceleration of our future transformation initiatives and general working capital needs, ”reads an application from the company. disposal, the market perception of us and the then current trading price of our Class A ordinary shares. . “
For the period ended January 2021, GameStop earned $ 1.34 per share on revenue of $ 2.12 billion. According to Wall Street, WallStop reported earnings of $ 1.35 per share on revenue of $ 2.21 billion, according to Refinitiv’s average of the six analysts covering GameStop.
This is GameStop’s first quarterly adjusted profit since the fourth quarter of 2020. GameStop’s earnings in the fourth quarter are mostly the bulk of the company’s annual earnings, supplemented by holiday sales. GameStop’s sales in the same store increased by 6.5%.
“We started strong in 2021 as comparable retail sales increased by 23% in February, led by sustained strength in global hardware sales. Looking ahead, we are excited about the opportunities ahead as we begin to prioritize. -terminal digital and e-commerce initiatives as we continue to run our core business during this emerging console cycle, “GameStop CEO George Sherman said in the revenue statement.
GameStop’s first quarterly report since the Game Manip trading mania in January, earned Tuesday.
In January, an epic brief push on GameStop’s shares shocked Wall Street and drew attention to an emerging class of retail investors on social media platforms such as Reddit. GameStop’s share price soared to $ 483 per share, losing 90% of its value. The controversy drew the attention of Wall Street and Washington.
Since GameStop’s rise and fall in January, the stock has been rising steadily, with shares rising nearly 70% this month. GameStop’s share increased by more than 860% in 2021.
GameStop has a market capitalization of nearly $ 14 billion, more than ten times the market value of $ 1.3 billion at the end of last year. A year ago, GameStop’s market capitalization was $ 245 million.
GameStop’s share has traded positively over the past five months with new developments for the company, such as the appointment of Chewy co-founder Ryan Cohen on GameStop’s board and a focus on GameStop’s transition to technology and e-commerce.
Earlier this month, GameStop announced that it had touched on Cohen to lead its move to e-commerce. Cohen chairs a special committee set up by GameStop’s board to help with the transformation. Board members Alan Attal, former CEO of Chewy, and Kurt Wolf, chief investment officer of Hestia Capital Management, also serve on the committee.
The committee has already appointed a chief technology officer, appointed two executives to lead customer services and e-commerce, and embarked on a search for a new chief financial officer with technology or e-commerce experience. GameStop previously announced that current CFO Jim Bell will resign on March 26. Referring to sources familiar with the matter, Business Insider reported that Bell had been evicted by Cohen.
GameStop said Tuesday its chief customer officer Frank Hamlin will retire.
The company said it was still suspending guidance.