GameStop’s Earnings Thrust into Spotlight Amidst Bitcoin Ventures
GameStop’s stock, currently trading at $29.58, is set to be under the microscope this week as the company unveils its earnings. This marks the first report as GameStop began acquiring Bitcoin.
Wall street analysts foresee ongoing challenges for GameStop’s core business. More customers are shifting towards digital gaming,eroding physical sales. Revenue expectations are at $754 million,down 14.47% year-over-year. The second-quarter outlook is even bleaker, with forecasts at $748 million.
GameStop’s annual revenue has plummeted from $6 billion in 2022 to just $3.8 billion last year. This trend is likely to continue, indicating the company’s struggle with industry shifts. However, GameStop is betting on Bitcoin to diversify its portfolio, mirroring Strategy’s success, whose valuation soared past $100 billion.
GameStop holds 4,710 Bitcoin coins, worth over $497 million. The company plans to invest more due to its robust balance sheet, holding over $4.7 billion in cash and no debt.
The GME stock’s future is uncertain. While its stock price has dipped sence May,it remains bullish above key moving averages.The fiscal 2025 Q1 results, due on June 10, will be crucial. Analysts are watching $20 and $35.78 as key support and resistance levels.
- expected revenue: $754 million,down 14.47% year-over-year
- Second-quarter outlook: $748 million, a 6.28% dip from the same period last year
- Bitcoin holdings: $497 million from 4,710 coins
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