GameStop Earnings News: GME sinks lower with market despite successful Q2

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GameStop (GME) stock jumped above $20 initially in Wednesday’s post-market when its second-quarter results were released to great fanfare. The video

GME shares are trending lower on Thursday due to the macro picture.Revenue rose 2% YoY, and SGA costs were kept to a minimum.jumped above $20 initially in Wednesday’s post-market when its second-quarter results were released to great fanfare. The video game retailer cut its ongoing losses down to smidgin and offered up the possibility of futures profits.

"The global economy should slow a little, as the US downshifts from the strong pace of early Q3 to a mild slowdown, though not a material recession,” said the Barclay’s report.GameStop lost $-0.03 per share in adjusted terms, which was 11 cents better than Wall Street consensus. Revenue of $1.16 billion, up 2% YoY, also bested the averageGameStop has been holding on for dear life since covid hit and is finally starting to see real results.

"During the first quarter of fiscal 2023, we began the process of exiting our operations in Ireland, with all stores in the region closing in the second quarter of fiscal 2023,” the company said in a statement. “While we expect our cost containment efforts to yield reductions in SG&A expenses in the long term, we have incurred and may continue to incur severance and other non-recurring costs related to these efforts in the short term.

 

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