It says the facility will be a key element of its future growth plans. Considering that it is investing heavily in being able to confront a future of gaming that's increasingly digital and online, that shouldn't be unexpected.įor example, the company recently opened a new customer care facility in Florida, for which it just hired 500 employees. The price was far greater than the $0.58 per share loss analysts were anticipating.Įxpenses also jumped year over year to $421.5 million, but the 17% growth rate was less than what it was experiencing in sales growth. Spending money to make money, maybeĪlthough revenue rose 29% to just under $1.3 billion, putting it closer to where it was in 2019 when it generated $1.4 billion in sales, GameStop saw losses widen significantly in the period to $1.39 per share from $0.53.

Why? Because it is a company trying to engineer a turnaround, seeing escalating costs, burning through twice as much cash as it had a year ago, and offering little to no insight into what it is doing to turn its business around.ĭespite that, there's actually a lot to suggest that GameStop just might be able to engineer this reversal of fortune and why I say it's a meme stock that is still a solid long-term pick. With any other stock, GameStop's performance would be considered a poor one. Once again, the video game retailer limited its earnings conference call to just management's prepared remarks and shut Wall Street out from asking any questions. GameStop (NYSE: GME) surprisingly beat revenue estimates for the third quarter but widely missed analysts' earnings projections.

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