Jeff Sica of Circle Squared Alternative Investments discusses GameStop reports and Vizio’s preparation for going public.
GameStop Corp. is expected to deliver its first set of quarterly results since Reddit’s trading frenzy caused its stock price to skyrocket.
Shares of Texas-based video game retailer Grapevine have soared 932% this year, closing at $ 194.49 each on Monday. They hit an intraday high of $ 483 on January 28, when Reddit WallStreetBets message board traders came together to squeeze short sellers.
Ticker | Safety | Last | Change | Change % |
---|---|---|---|---|
GME | GAMESTOP | 185.28 | -9.21 | -4.73% |
The small squeeze was caused by news that the investment firm RC Ventures, founder of Chewy, Ryan Cohen, has accumulated a large stake in GameStop with the aim of transforming the company into an e-commerce giant that sells a wide variety of goods with fast shipping. The company now controls 13% of the shares.
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Cohen, earlier this month, was officially tasked with leading GameStop’s e-commerce momentum. He has been named chairman of a special committee that will identify initiatives to accelerate the transformation.
GameStop announced on Tuesday the departure of CCO, Frank Hamlin. His departure comes about two weeks after the company announced that Chief Financial Officer Jim Bell would resign as of March 26.
Changes have been underway for weeks with the company in February, naming Matt Francis, a former engineering leader at Amazon Web Services, as its first chief technology officer.
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Investors will be paying close attention to how the company’s e-commerce momentum is progressing amid declining sales at its physical stores.
GameStop said online sales increased by 309% during the crucial nine-week holiday season ending on January 2. However, total sales fell 3.1% year-over-year to $ 1.77 billion, as strong console demand was offset by the closing of physical stores due to COVID-19 and supply chain restrictions.
GameStop is expected to report fourth quarter earnings of $ 1.35 per share on revenue of $ 2.23 billion. The company earned $ 1.27 per share on sales of $ 2.19 billion in the same quarter last year.