Despite being ground zero to Wall Street’s biggest-ever short-squeeze, GameStop is determined to show investors that it means business.
It’s not quite made it to the moon just yet, but GameStop (NASDAQ: GME) is showing investors that it plans to turn things around.
Aside from its meme-stock status, its fundamentals as a business are improving according to its Q1 earnings.
GME to the moon?
For Q1, GameStop reported that its net loss narrowed to $66.8 million, or $1.01 per share, from a loss of $165.7 million, or $2.57 per share, a year earlier.
What’s more, its actual business of selling games and merchandise is improving, with revenue growing to $1.28 billion from $1.02 billion a year earlier. And Q2 appears to be going well too, with leadership letting investors know that total sales for May actually rose 27% year-over-year too.
Despite declining to provide guidance for the year, which has sent shares down in after-hours trading, the company is also officially free of all long-term debts as of May 1.
And the ace up its sleeve? The video game retailer said it had tapped Amazon executive Matt Furlong as its new CEO — an all-star addition to a business seeking to rehabilitate its image and become a dominant e-commerce leader.
What investors should be taking away from all of this is the company’s refusal to simply be a ‘meme’ stock. Not only is it actively tackling business problems — poor leadership, failing business model, rising debt — but it’s keeping investors in the loop about all of these goings-on.
Unlike its meme-stock brethren, AMC — which is offering shareholders free popcorn to appeal to the young retail investor demographic — GameStop could well be on its way to successfully pivoting towards a collectibles and games e-commerce model, leaving its bricks-and-mortar past behind. Sure, it’s a long way off just yet, and I wouldn’t personally invest at these overinflated prices, but I can’t deny that my interest has been piqued.
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