Texas-based GameStop made its fourth-quarter earnings public with a record $2.1 billion in sales as predicted by the analysts.
This was the firm’s first-quarter sales report since a record-shattering 2000% surge in the stock price in January 2021.
The unprecedented surge in GameStop stock price continued with a newly formulated vengeance and volatility since it was declared the ultimate meme stock of choice by Reddit traders in January, as they plowed down some big shots at Wall Street.
The brick-and-mortar retailers had hit GameStop hard over the past decade by wiping almost 90% of the stock, making it a dead commodity in the stock exchange market.
The equation changed when 35-year-old Cohen bought up the shares and brought new ideas and resources on the table to usher in a new era for GameStop. Cohen and his Chewy colleagues were hired as members of the board of directors of GameStop in January and have transformed the firm by restructuring its business techniques.
GameStop also announced the appointment of Jenna Owens – a former Amazon executive – as Chief Operating Officer.
The video-game retailer company has recorded a revenue of $2.1 billion, the same revenue that the company had reported last year.
Bank of America analyst Curtis Nagle had predicted underwhelming quarter sales for the company because of the disappointing holiday sales.
Nagle had claimed that GameStop had become a raging commodity in the stock market because of its digital revenue-sharing arrangement with Microsoft. On the other hand, he claimed that the sales were bound to be underwhelmed because no details had been made public regarding the costs, strategic points, timeline, and impact on earnings.
GameStop’s shares went down 7% but surged by 2% in the after-trading hours after the earnings were made public.