GameStop’s (GME) share worth is down about 5% after the online game retailer reported blended first-quarter monetary outcomes.
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The Texas-based firm introduced earnings per share (EPS) of $0.09, which topped the $0.04 consensus expectation of analysts. Nonetheless, income for the quarter got here in at $732.4 million, which was below the consensus Wall Road estimate of $754.2 million.
The corporate additionally reported an improved operating margin of -1.5%, which was up from -5.7% in the identical quarter of 2024. GameStop’s free money circulation on the finish of the quarter totaled $189.6 million, which was an enormous enchancment from unfavourable -$114.7 million a yr earlier.
GameStop’s profitability. Supply: Essential Road Information
Bitcoin Purchases
Together with its monetary outcomes, GameStop disclosed that it purchased 4,710 Bitcoins (BTC) between Could 3 and June 10 of this yr. It’s not recognized what the common buy worth of the Bitcoin was. Nonetheless, GameStop’s BTC holdings are at present value $516.6 million primarily based on the present worth of Bitcoin.
GameStop introduced beforehand that it deliberate to start shopping for and holding cryptocurrencies, adopting the same playbook to that of software program developer turned serial BTC acquirer Technique (MSTR). GameStop has mentioned it plans to make use of its extra money to make investments in threat property corresponding to crypto and shares. The corporate made its first Bitcoin funding in Could of this yr.
Is GME Inventory a Purchase?
At the moment, just one Wall Road analysts provides a ranking and worth goal on GME inventory. So as a substitute, we’ll take a look at the inventory’s three-month performance. As one can see within the chart beneath, GameStop’s share worth has gained 33% during the last 12 weeks.
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