GameStop posts mixed quarterly results: Here's how the stock is doing
GameStop (GME) posted its second-quarter performance on Wednesday. The stock was down more than 2% immediately following the results.
The video game retailer posted an adjusted loss per share of 76 cents vs. a Wall Street estimate of 67 cents with revenue of $1.18 billion compared to $1.12 billion expected.
GameStop says it ended the period with cash and restricted cash of $1.78 billion. It also entered into a fulfillment center lease in Reno, Nevada in order for its network to span both coasts of the U.S.
GameStop went through a C-Suite overhaul after Ryan Cohen, the co-founder of e-commerce platform Chewy (CHWY), joined the board in January and became chairman in June. Cohen, known as "Papa Cohen" by the "meme" crowd, has said he's not ready to reveal specifics about his strategy yet.
"We are trying to do something that nobody in the retail space has ever done,” said Cohen at the company's annual meeting in June.
As with the last two quarterly results, there was no question and answer period for analysts on Wednesday's earnings call. Wedbush analyst Michael Pachter has a Sell rating and $50 price target on GameStop. He wasn't optimistic investors would hear details about Cohen's digital transformation strategy on Wednesday.
"I ... am waiting for his brilliant strategy, and it's not going to be brilliant. If it was brilliant, then he would have let us know, months and months and months ago," Pachter told Yahoo Finance in a phone interview.
"He's trying to revolutionize an industry that has already passed him by. He's audacious, and he's wrong on this one," added the analyst.
Pachter is one of a handful of analysts still covering GameStop. Some have stopped coverage since the 'meme' stock craze took off.
Year-to-date the stock is up around 950% following a massive short squeeze in January spurred by Reddit's WallStreetBets traders. Six months after the GameStop saga, GME continues to be a retail trader favorite.
In June, Jeffries analyst Stephanie Wissink noted "the company's social, PR, and individual investor focus is a sign of clear recognition of their audience. The gamer remains a strong supporter - both as a consumer and investor.”
Wissink designated a Hold rating with a $190 price target on the stock.
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