GameStop stock ($GME) tanks on Q4 earnings report

GameStop Corp (NYSE: GME) just posted disappointing earnings report for its fiscal fourth quarter. Shares of the gaming merchandise retailer are down close to 20% in extended hours.

GameStop stock down on a hit to revenue

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The $4.0 billion company based out of Grapevine, Texas improved its net income from $48.2 million to $63.1 million. Its per-share earnings also jumped to 21 cents in Q4 versus 16 cents in the same quarter last year.

Still, the stock is being punished because $GME saw net sales tank about 20% to $1.794 billion in the fourth quarter, as per the earnings press release.

Both metrics fell short of Street estimates as well. Analysts had called for 28 cents of per-share earnings on $2.07 billion in revenue for its Q4.

GameStop stock is now down over 50% versus its 52-week high.

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Jeff Kilburg shares his view on $GME

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GameStop Corp ended its recent fiscal quarter with $1.199 billion in cash and equivalents including marketable securities. On CNBC’s “The Exchange”, Jeff Kilburg of KKM Financial said:

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Stay away from it. Sell it if you own it. [But] I certainly don’t want to short $GME. There’s a lot of uncertainty there. From a trade perspective, you can make money being long or short.

The New York listed firm decided to exit its NFT marketplace in January citing “continuing regulatory uncertainty of the crypto space”. Customers can no longer buy, sell, or create NFTs on its marketplace.

Note that GameStop shares had made a bullish pattern ahead of the company’s quarterly report (read more).