I have a mixed view of GME's growth prospects in the long run, after considering both the potential of its NFT (Non-Fungible Token) marketplace and the risk of future gaming software sales coming in below expectations. GameStop disclosed how the company performed for the first quarter of fiscal 2022 (YE January 31) in a press release issued on June 1, 2022. On July 11, 2022, GameStop revealed in a press release that the "public beta version" of the company's NFT marketplace went live. However, GameStop also seems to be prepping its own first-party wallet in the form of the GameStop Wallet Browser Extension. New comments cannot be posted and votes cannot be cast. Now the company is tapping into buzzy areas like NFTs for growth. In the three-month period ended April 30, GameStop reported a net loss of $157.9 million on revenue of $1.38 billion. We'll be sure to keep monitoring news from Wednesday's GameStop (GME) earnings report. GME's first-quarter revenue beat the market's consensus sales projection of $1.32 billion by +5%. Despite the recent drop, GameStop stock is still up more than 40% over the past three months. Signup for a Free Account. Conversely, the highest revenue point came in at around $475.41, which is obviously better but still relatively poor all around. In GameStop NFT marketplaces early days, the business boomed. The NFT marketplace is expected to have a positive impact on GameStop in the future. On Wednesday, GameStop (GME) submitted its Q2 2022 earnings report. GME shares are up 18.3% over the past year and 14.3% over the past month. Separately, it is also possible that certain of Activision's future games might only be released for the Xbox rather than having PC versions as well, which could possibly lead to lower overall sales for GME. The earnings are largely attributed to collectibles. Furthermore, the sector will need to grow at a CAGR of 21% from 2022 to 2025. . This is because users need to download GameStop Wallet (or use other compatible digital asset wallets) and top it up with Ethereum (ETH-USD), before they can buy NFTs on GME's marketplace. The Dow Jones Industrial Average on Friday rose 328.69 points, or 1%, to end Friday's session at 33,093.34. I will touch on GameStop's new NFT marketplace in greater detail in the other sections of the article. Earlier this year, U.S.'s biggest crypto exchange, Coinbase Global Inc., launched its own NFT marketplace. Asia Value & Moat Stocks is a research service for value investors seeking Asia-listed stocks with a huge gap between price and intrinsic value, leaning towards deep value balance sheet bargains (i.e., buying assets at a discount, e.g., net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e., buying earnings power at a discount in great companies like "Magic Formula" stocks, high-quality businesses, hidden champions and wide moat compounders). While the company appears to be doing well from a financial standpoint, it should be interesting to note that none. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke? CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS. That way, NFT revenues will jump to $6.9B, nearly a tenth of all crypto trading income. GME stock is a Hold. The Company's NFT marketplace is a non . On GMERICA 1 NFTs, GME receives as revenue most of the initial sale price plus a royalty on subsequent trades of NFTs in that collection along with the per sale fee of 2.25%. Conversely, the highest revenue point came in at around $475.41, which is obviously better but still relatively poor all around. TipRanks->. In other words, the business outlook for GameStop is negative, as the company needs to accelerate the pace of revenue diversification by increasing the sales contribution from hardware and accessories, especially in view of changes in the gaming landscape such as the MSFT-ATVI combination. New to Shacknews? Last week, GameStop fired Recupero and announced layoffs across departments. These statements are only predictions based on current expectations and assumptions and involve known and unknown risks, uncertainties and other factors that may cause the Company or its industrys actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. I have no business relationship with any company whose stock is mentioned in this article. Privacy Policy. The vast majority of NFT products and ecosystems are designed and developed by corporate strategy, product, technology, and marketing teams. All Rights Reserved. Tax professionals and stakeholders are often not involved in the process of the appropriate tax considerations (e.g. He has been into games ever since, only briefly stepping away during his college years. This sub is not for financial discussion. TJ Denzer posted a new article, GameStop (GME) Form 10-K Annual Report states NFT marketplace sales weren't material to 2022 revenue, GTA Online: San Andreas Mercenaries brings new missions & content on June 13, Blizzard acknowledges Diablo 4 Invalid License error on PS5, Tell Me Why is free to claim and keep on PC and Xbox throughout all of Pride Month, GameStop (GME) Form 10-K Annual Report states NFT marketplace sales weren't material to 2022 revenue. I assign a Hold investment rating to GameStop Corp.'s (NYSE:GME) stock. The marketplace, which can be accessed at https://nft.gamestop.com, allows parties to connect to their own digital asset wallets such as the recently launched GameStop Wallet. GameStop NFT currently offers only artwork NFTs, but intends to launch a suite of gaming NFTs, which can be used as interactive items within video games . GME among the top 10 most unprofitable stocks for short sellers during July 2022. All forward-looking statements included in this press release are based upon information available as of the date of this press release, and GameStop undertakes no obligation to update or revise any of these forward-looking statements for any reason, whether as a result of new information, future events or otherwise, except as required by law. TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. Controversy has been enveloping the company for most of this year. He was pushed out by Cohen, the person said. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders). GameStops NFT business has been on a decline in recent times, with sales volume, number of traders, and average item prices, all falling. It also unveiled its partnership with Immutable X, which is intended to support the launch and . Create your Watchlist to save your favorite quotes on Nasdaq.com. The world is wonderful and traveling through it, getting to know new cultures and, above all, interacting with them, is one of the greatest gifts we can make. On July 11, GME announced the launch of its non-fungible token (NFT) marketplace to enable gamers, creators, collectors, and other community members to buy, sell and trade NFTs. As per GME's February 3, 2022 8-K filing, one of the milestones for the partnership is "a cumulative amount of $3.0 billion in combined Primary Sales and Secondary Market Sales Transactions on Immutable X within twenty-four (24) months.". The S&P 500 gained 54.17 points, or 1.30%, to finish at 4,205.45. A Division of NBCUniversal. Based on a 2.25% marketplace transaction fee, GameStop probably generated fees of around $160,000 in the last few weeks based on the $7.2 million transaction value figure referred to above. Get them exclusively at Asia Value & Moat Stocks. The Value Pendulum Investing Group Leader Follow Summary Q1 FY 2022 was a mixed quarter for GME; the faster-than-expected revenue growth was overshadowed by a weaker-than-expected gross margin. on r/wallstreetbets, a subreddit devoted to tracking financial investments and trends, notes that on July 30, 2022, GameStops NFT marketplace had its worst day thus far. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. That was in mid-July. We want to help, do something for Ukraine, for our world, but with our . Signup for a Free Account. Nonetheless, while GameStops NFT Marketplace doesnt seem to be moving the needle positively for the company, its also not substantially hurting GameStop at the moment. GameStop Corp. (NYSE: GME) (GameStop or the Company) today announced that it has launched its non-fungible token (NFT) marketplace to allow gamers, creators, collectors and other community members to buy, sell and trade NFTs. Among its many initiatives, GameStop has shared a vested interest in getting on board the NFT trend while its still hot. Then there was an incident in Lincoln, Nebraska, where several employees walked off the job , Your California Privacy Rights/Privacy Policy. As a reference, COIN's NFT marketplace was launched much earlier on May 4, 2022. The decline came on a generally bad day for meme stocks, as AMC Entertainment (AMC) and Bed Bath & Beyond (BBBY) also plunged nearly 42% and 16%, respectively. Dolce & Gabbana (Italian pronunciation: [dolte e abbana]), also known by initials D&G, is an Italian luxury fashion house founded in 1985 in Legnano by Italian designers Domenico Dolce and Stefano Gabbana. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. GameStop operated a total of 4,573 stores, including 3,018 in the United States, as of Jan. 29, according to an annual filing. However, Wall Street is not excited about the stock. He brought in a fresh slate of corporate leaders, including current Chief Executive Officer Matt Furlong, formerly of Amazon. Last month, GameStop had to pull an NFT that, . I previously wrote about Coinbase Global's (COIN) planned NFT marketplace in an earlier article published on January 25, 2022. In its Q1 FY 2022 financial results media release, GameStop highlighted that "new and expanded brand relationships" were the key driver of its better-than-expected topline growth in the recent quarter. Pretty sure they could not have timed entering that market more poorly. by +5%. Marketplace is a convenient destination on Facebook to discover, buy and sell items with people in your community. In some cases, forward-looking statements can be identified by the use of terms such as anticipates, believes, continues, could, estimates, expects, intends, may, plans, potential, predicts, pro forma, seeks, should, will or similar expressions. GameStop's gross profit margin contracted by -4.2 percentage points YoY from 25.9% in Q1 FY 2021 to 21.7% in Q1 FY 2022. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The author of an NFT has the choice to specify a royalty percentage that they will get each time their NFT is sold in the future when it is first issued. Signup for a Free Account. In a number of rounds, retail investors have won against Wall Street elites by sparking short squeeze in meme stocks like GME and AMC. TipRanks' multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions. However, GameStop seems like it may have missed the ship, at least in the Marketplaces first year of operation. GameStop primarily operates a video game retail business. Steely-eyed sleuths have recently found GameStops beta NFT market website. In the long term, GME's outlook is mixed; the inclusion of gaming NFTsshould be a key growth driver for GameStop's marketplace, but the Microsoft-Activision combination is negative for its commerce business. GameStop remains one of the most discussed meme stocks on retail investor forums such as Reddits WallStreetBets and Stocktwits. GME short sellers have lost $443.4 million so far this month. For more on GameStop and its NFT Marketplace, stay tuned right here at Shacknews for the latest updates as they happen. And so far the company's digital-first turnaround hasn't been without its road bumps. We want to hear from you. Here is the statement from the aforementioned SEC filing: During the three months ended July 30, 2022, we launched beta versions of a non-custodial digital asset wallet and a peer-to-peer non-fungible token ("NFT") marketplace that will enable purchases, sales, and trades of NFTs. 84 pconwell 5 mo. Controversy has been enveloping the company for most of this year. A year earlier the company posted a $66 million net loss on $1.27 billion in revenue. On the first day, for example, the company generated $44,500 in fee revenue on sales volume of $1.98 million. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. One of the more immediate business plans of GameStop shared across multiple investor calls, press releases, and website updates is the introduction of a GameStop NFT marketplace that will allow users to create and trade NFTs. In a recent annual filing, GameStop revealed that sales from its NFT Marketplace since opening made no major impact on its bottom line in terms of 2022 revenue. Reddit and its partners use cookies and similar technologies to provide you with a better experience. A number of factors could cause the Companys actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. GameStop . The other airport in Palermo, Boccadiflaco, caters to independent pilots, and offers regional . The platform, which is now open to the public for beta testing, allows users to connect their own digital asset wallets, including the recently launched GameStop Wallet, the company said in a press release. You should not place undue reliance on these forward-looking statements. GME's first-quarter revenue beat the market's consensus sales projection of. Immutable is one of the leaders in the Web3 games space, so the partnership should pave the way for the introduction of gaming NFTs on GME's NFT marketplace in time to come, which is expected to be a key long-term growth driver. TipRanks' Stock Investors tool shows that investor sentiment is currently Positive on GameStop. GME stock is taking the heat amid the shrinking NFT sales. These symbols will be available throughout the site during your session. Cookie Notice GameStop on Monday announced the long-awaited debut of its online marketplace for nonfungible tokens, or NFTs, in a bid to reinvent its business and cash in on consumer adoption of. In the next two sections of the article, I specifically discuss GME's new NFT marketplace. Factors that might cause such differences include, but are not limited to, those discussed in the Companys most recent Annual Report on Form 10-K available at www.sec.gov and on the Companys website at www.GameStop.com. The announcement sure didnt have a warm reception, and it looks like public perception isnt improving. Data is a real-time snapshot *Data is delayed at least 15 minutes. An outpouring of fury at the MSM for 'faking' the story of RC selling, only for it to be proven true the next day. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Recupero wasn't immediately available to respond to CNBC's request for comment. Archived post. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Get this delivered to your inbox, and more info about our products and services. Its, of course, possible that this all turns around, but as of right now, the GameStop NFT market is looking rough. This was a relatively faster pace of topline expansion as compared to GME's +6% YoY sales growth for Q4 FY 2021. June 1, 2022 1:07 PM 4 GameStop is out with their Q1 2022 earnings results, and the company reported $1.38 billion in revenues, beating expectations of $1.3 billion. It is for meme wars and casual discussion of GME, meme stocks, and its associated culture. More significantly, GME's actual Q1 FY 2022 gross margin came in -0.7 percentage points lower than the Wall Street analysts' consensus gross margin forecast as per S&P Capital IQ data. GameStop on Monday announced the long-awaited debut of its online marketplace for nonfungible tokens, or NFTs. In GameStop NFT marketplace's early days, the business boomed.. A screenshot of GameStop's NFT marketplace, where, Stacey Widlitz: The era of full price selling is over with consumer slowdown, Here's what earnings from industry rivals mean for two Club names, GameStop fired Recupero and announced layoffs across departments, GameStop reported a net loss of $157.9 million on revenue of $1.38 billion. In addition to its namesake business, it also owns the EB Games and Micromania banners. GME stock spiked on the back of the NFT marketplace debut as investors cheered to welcome another crypto stock opportunity. Please read the sub rules. Privacy Policy. Revenues earned from our digital asset wallet and NFT marketplace were not material to the consolidated financial statements for fiscal 2022. GME NFT Marketplace Update | Nearly six months post-launch | Still working out the Beta bugs | Approximately $300 daily revenue lately. Type a symbol or company name. Poke fun of the flat-earthers and sov-cits of investing for believing in fairly tales and conspiracies rather than learning how the stock market actually works CronJ: Expert NFT Marketplace Development Company Is this happening to you frequently? If you have an ad-blocker enabled you may be blocked from proceeding. Furlongsaid in March thatGameStop is making investments to drive customer loyalty and build up its brand, which has weighed on profitability. Please disable your ad-blocker and refresh. While GameStops NFT business may not be in great shape now, it can deliver if the company can find a way to turn it around. Copy and paste multiple symbols separated by spaces. The GameStop Q2 2022 earnings report issued by the company made mention of its NFT Marketplace, highlighting the digital GameStop Wallet feature and noting that it allows users to buy, sell, and trade NFTs. This translates into a Neutral view and Hold rating for GameStop. Billion. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. GTA Online: San Andreas Mercenaries brings new missions & content on June 13, Blizzard acknowledges Diablo 4 Invalid License error on PS5, Tell Me Why is free to claim and keep on PC and Xbox throughout all of Pride Month, GameStop Wallet and NFT Marketplace revenues were not material to Q2 2022 results. On the negative side of things, GameStop is expected to continue to generate losses for the foreseeable future, as it invests to diversify its revenue base. GameStop shares fell about 5.5% to $34.50 on August 22. Others, however, may see the marketplace as coming a little too late. I have no business relationship with any company whose stock is mentioned in this article. CryptoMonday.de has been analyzing trends within the crypto space. Reddit and its partners use cookies and similar technologies to provide you with a better experience. While GameStop had a few victories with its Q2 2022 earnings report, it does not appear that the GameStop Wallet and NFT Marketplace contributed to any of them. All rights reserved. Those who believe that the pendulum will move in one direction forever or reside at an extreme forever eventually will lose huge sums. In the past 30 days, 1.9% of the best-performing portfolios tracked by TipRanks increased their exposure to GME stock. The company intends to venture into the digital asset space with the launch of a non-fungible token (NFT) marketplace by the end of the second quarter of its fiscal year 2022. The house specializes in ready-to-wear, handbags, accessories, and cosmetics and licenses its name and branding to Luxottica for eyewear. GameStop on Monday announced the long-awaited debut of its online marketplace for nonfungible tokens, or NFTs, in a bid to reinvent its business and cash in on consumer adoption of cryptocurrencies and blockchain technology. New to Shacknews? GameStop also reported a loss. Bear Case! dividing GameStop's $6 billion in revenue last year by the almost 4,600 stores it had in operation, the video game . GameStops specific statement on the NFT Marketplace can be found below: Revenues earned related to our NFT digital asset wallet and marketplace are recognized in net sales in our Consolidated Statement of Operations. For the whole weekend, total profits came in at roughly $4696.41. At one point, the controversial storefront was making approximately $13.40 an hour. With GameStops total NFT sales volume at just $18 million since the marketplace debuted, the growth opportunity ahead is still enormous. The bull case for 2023 is $1.5 billion in NFT revenue . Indeed, many retail investors are willing to bet against Wall Street when it comes to GME stock. Someretail industry-watchers expect them to become a hot holiday gift. He also tapped another former Amazon exec, Mike Recupero, as chief financial officer. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. . A post on r/wallstreetbets, a subreddit devoted to tracking financial investments and trends, notes that on July 30, 2022, GameStops NFT marketplace had its worst day thus far. This is aligned with the sell-side's consensus financial forecasts (source: S&P Capital IQ) that point to a modest two-year forward revenue CAGR of +5.9% and continued losses for GME in the next two fiscal years. Public Beta Version Live at https://NFT.Gamestop.com. Over time, the marketplace will expand to offer other features such as Web3 gaming, GameStop said. Sales of digital artwork virtual and avatars could be cooling off from their pandemic-fueled highs. The combined entity will have much greater bargaining power over gaming retailers like GameStop. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Notably, GME's NFT marketplace "has done over 5,000 ETH in trading volume and $7.2M in value since its launch" which was roughly +161% higher than "Coinbase Global's all-time NFT volume (1,913 ETH)" according to a July 20, 2022 Seeking Alpha News article which cited data from Coindesk. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 11, 2022-- GameStop Corp. (NYSE: GME) ("GameStop" or the "Company") today announced that it has launched its non-fungible token ("NFT") marketplace to. Please. buying assets at a discount e.g. On its website, GME defines its NFT marketplace as "a platform for discovering, collecting, creating, and trading" NFTs "from creators, communities, and global brands.". This detail was reported recently in GameStops Form 10-K Annual Report. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. I am not receiving compensation for it (other than from Seeking Alpha). At the company's Q4 2021 earnings call on March 17, 2022, GameStop emphasized that there is "significant long-term potential in the more than $40 billion market for NFTs." You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs. Sign up for free newsletters and get more CNBC delivered to your inbox. But this will also require GME to sustain a certain level of investments to support its new growth initiatives. However, GME also emphasized at its Q1 FY 2022 earnings briefing on June 1, 2022 that "long-term (rather than short-term quarter-to-quarter) revenue growth is a primary metric by which we believe stockholders should assess our execution." The tech heavy . This percentage is 2.25%. Those who understand the pendulum's behavior can benefit enormously. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but hes also a huge sucker for anything with a good, compelling narrative behind it. Its unknown exactly what the details are on GameStops first-party wallet option, but the company will likely share more details on the matter as we get closer to its NFT Marketplaces launch in Q2 2022. Ozzie has been playing video games since picking up his first NES controller at age 5. As noted on the Q2 2022 earnings report, GameStop (GME) missed its revenue target of $1.27 billion USD, finishing the quarter with $1.14 billion earned. For the whole weekend, total profits came in at roughly $4696.41. On the other hand, GameStop's gross profit margin for Q1 FY 2022 was below expectations, and GME is likely to remain loss-making for the foreseeable future. I wrote this article myself, and it expresses my own opinions. In a similar fashion, the GME Marketplace keeps a portion of each sale as their revenue. On one hand, GME achieved decent sales growth in the most recent quarter. View source version on businesswire.com: https://www.businesswire.com/news/home/20220711005691/en/, GameStop Corp. Investor Relations Much of GameStop's most recent plans for the NFT marketplace were shared as part of its Q4 2021 earnings results. Privacy Policy. Specifically, GME's previously announced partnership with Immutable X Pty Limited holds a lot of promise. In the long run, the future growth of the NFT marketplace could be substantial. The GME NFT Marketplace's daily revenue is 4,080% higher than Coinbase's NFT Marketplace. GME's net loss also widened from -$67 million in the first quarter of fiscal 2021 to -$158 million in the recent quarter. All rights reserved. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. At one point, the controversial storefront was making approximately $13.40 an hour. New comments cannot be posted and votes cannot be cast. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Please check your email for a confirmation. Scan this QR code to download the app now. Although GameStop believe that the expectations reflected in these forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Swati Goyal for Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. A place to share $GME or other meme stock meltdowns from your friends, family, fellow Redditors, celebrities, and more. I mean. GameStop is undergoing a turnaround following several years of financial struggles, burdened in part by its massive real estate footprint and the videogame industry's rapid shift online. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs. and our According to TipRanks analyst rating consensus, GME stock is a Moderate Sell. Q1 FY 2021 to $1,378 million in Q1 FY 2022. Palermo airport transportation is facilitated by two airports serving the city. The average GameStop stock price prediction of $17.50 implies over 49% downside potential. Sixty. and our Currently, Metamask and WalletConnect are options. The beta GameStop NFT Marketplace website was initially spotted by Twitter users such as acidburn.eth. On the positive side of things, I am encouraged by the initial performance of GameStop's NFT marketplace, and I expect the introduction of gaming NFTs going forward to be a further boost for its marketplace. $66 billion in NFT sales. Six. It turns out that GameStops non-fungible token (NFT) marketplace sales that initially soared are now falling. ir@gamestop.com, https://www.businesswire.com/news/home/20220711005691/en/. It also discusses the benefits of NFT marketplaces, including global accessibility, transparency, and potential revenue streams for creators. Got a confidential news tip? ", As an indication of what GameStop is targeting to achieve with its partnership with Immutable X, it is worth referring to the 8-K filing issued in connection with this announcement. In a nutshell, Q1 FY 2022 was a mixed quarter for GME. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Since launching the marketplace on Monday, GameStop stock (GME) has risen 10%, closing on Wednesday at $141.28. Reddit, Inc. 2023. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. GME's legacy and core commerce business could be put under greater pressure, when the deal between MSFT and ATVI (both are suppliers for GameStop) completes. Putting NFTs aside, the proposed acquisition of Activision Blizzard, Inc. (ATVI) by Microsoft (MSFT), which is currently going through the process of regulatory approval, is a key factor to consider in assessing the business outlook for GameStop. Revenues earned related to our NFT digital asset wallet and marketplace are recognized in net sales in our Condensed Consolidated Statement of Operations. However, it looks like the foundational website is already up for said NFT marketplace. The Palermo International Airport sits west of the city, connecting back to the main town area via bus, train, or taxi. The videogame retailer has struggled to stem losses in recent years, even as its sales of hardware, software and collectibles grow. It also noted that "pursuing growth opportunities in the cryptocurrency, NFT and Web3 gaming verticals" is a key area of focus for the company. Sales related to GameStop's recently launched NFT Marketplace haven't led to substantially reportable losses or gains. Last month, GameStop had to pull an NFT that mimicked a photograph from 9/11. However, according to the SEC filing, none of this wound up contributing meaningfully to GameStop's bottom line for Q2 2022. Sign up here to get started today! While interest doesnt seem to be running as high as it was in 2021 as of late, the opportunity is still arguably there and GameStop has been prepping for it with various website teases, such as creator application signups. Ozzie Mejia posted a new article, GameStop Wallet and NFT Marketplace revenues were not material to Q2 2022 results. Where both were an explosive phenomenon for a while, the bankruptcy of companies like FTX, crashing of cryptocurrencies like Luna Coin and TerraUSD, and a recent court case establishing that NFTs dont fall under protected speech has continued to spell trouble for crypto-related products since GameStop launched the Marketplace in July 2022. With a Q2 2022 launch in mind, we expect many more details will come out sooner than later. For more information, please see our Much of GameStops most recent plans for the NFT marketplace were shared as part of its Q4 2021 earnings results. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. The platform, which is now open to the public for beta testing, allows users to connect their own digital asset wallets including the recently launched GameStop Wallet. Revenue from NFT Marketplace is still "not material" to financial statements. The unique digital assets have drawn both enthusiasm and skepticism. It didnt result in notable sales or losses that would be required to be reported. Reddit, Inc. 2023. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. However, there wasnt really good news or bad news to share. This shouldn't be a surprise, as GME continues to be in investment mode. In July, it moved to try its luck in the crypto space, launching a platform for trading NFTs. Its also worth noting that GameStops Marketplace is surviving in a field where competitors and platforms are dwindling with the downward trend of NFTs and cryptocurrency over the past year. This translates into a Neutral view and Hold rating for GameStop. TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. GameStop's plan to develop an NFT marketplace is unlikely to help the video game retailer or GME stock long term. Theres no question that GameStops business venture into NFTs and cryptocurrency has been the subject of much criticism. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I am not receiving compensation for it (other than from Seeking Alpha). GRAPEVINE, Texas--(BUSINESS WIRE)--Jul. In 2021, NFT sales hit $25 billion. In June, e-commerce heavyweight eBay Inc. bought NFT marketplace KnownOrigin. They will then be able to buy, sell and trade NFTs of virtual goods. requisite information, revenue classification, sourcing) may not be fully accounted for and tax risk may be high. Having launched in July 2022 following its claw out of near-bankruptcy and back to a notable entity in gaming and tech retail, the Marketplace was GameStops attempt to get in on the trending craze of NFTs and cryptocurrency that was still booming earlier in the year. ~ Howard Marks. OpenSea charges a fee of 2.5% per trade, which is slightly higher than GameStop's NFT marketplace. The Texas-based company's revenue has been declining for years, dropping . While the company appears to be doing well from a financial standpoint, it should be interesting to note that none of its recent success appears to be stemming from the heavily touted NFT Marketplace. The GameStop NFT Marketplace seems to host a number of features users might expect out a platform for creating and trading NFTs, including the ability to connect a crypto wallet to the platform. The sell-side analysts expect GameStop to still be unprofitable for the current and subsequent fiscal year. This is the latest push by the videogame retailer, now chaired by Chewyfounder and activist investor Ryan Cohen, to invest in a digital future. In the near term, GME's new NFT marketplace has surpassed expectations in the initial phase of its launch. This was a relatively faster pace of topline expansion as compared to GME's +6% YoY sales growth for Q4 FY 2021. For more information, please see our Stay tuned as we continue to follow for more GameStop, NFT, and cryptocurrency news and updates. Our Condensed consolidated Statement of Operations use certain cookies to ensure the proper functionality of our.... Pendulum will move in one direction forever or reside at an extreme forever eventually will huge. Or 1.30 %, to finish at 4,205.45 its many initiatives, GameStop a... Quotes by selecting it and pressing Enter/Return among its many initiatives, GameStop had pull., buy and sell items with people in your Browser certain cookies to ensure the proper functionality of our.. With GameStops total NFT sales hit $ 25 billion its luck in the initial phase of its marketplace... Ozzie Mejia posted a $ 66 million net loss of $ 157.9 on. Shacknews for the whole weekend, total profits came in at around $ 475.41, has! Your Watchlist to save your favorite Quotes on Nasdaq.com fiscal 2022 digital asset wallet and NFT marketplace not., launching a platform for trading NFTs GameStop to still be unprofitable for current... The growth opportunity ahead is still enormous than 40 % over the past 30,! Of digital artwork virtual and avatars could be cooling off from their highs... Is currently positive on GameStop in the future, please enable Javascript and cookies in your community provide with. ) planned NFT marketplace the Texas-based company & # x27 ; s biggest crypto exchange, Coinbase Global Inc. launched. Investors cheered to welcome another crypto stock opportunity available to respond to CNBC 's request for comment GME, stocks. Announced the long-awaited debut of its online marketplace for nonfungible tokens, or NFTs 's:... Nft digital asset wallet and marketplace are recognized in net sales in our Condensed consolidated Statement of.... The pendulum 's behavior can benefit enormously looks like the foundational website already. Tipranks ' stock investors tool shows that investor sentiment is currently positive GameStop. Of this year n't immediately available to respond to CNBC 's request for comment sell trade... Your inbox jump to $ 1,378 million in Q1 FY 2021 transparency, and its use! ( other than from seeking Alpha ) Redditors, celebrities, and potential revenue streams for creators from.... Ahead is still enormous however, GameStop also seems to be doing well a... Is being given as to whether any investment is suitable for a particular investor is a convenient destination on to! Enabled you may be high its online marketplace for nonfungible tokens, or NFTs +6 % YoY growth! Much earlier on may 4, 2022 fell about 5.5 % to $ 1,378 million Q1... Avatars could be substantial Reddits WallStreetBets and Stocktwits pandemic-fueled highs months post-launch | still working the... Also find him on Twitter @ JohnnyChugs of Operations tj.denzer @ shacknews.com and also find him on Twitter @.... Pretty sure they could not have timed entering that market more poorly good story with a experience! Luck in the future, please enable Javascript and cookies in your Browser an... For comment also owns the EB games and Micromania banners and skepticism passion for games that dominated. Luxottica for eyewear be available throughout the site during your session far this month off the job, your Privacy! More poorly it didnt result in notable sales or losses that would be required to be in investment...., launched its own NFT marketplace was launched much earlier on may 4, 2022 earned from our asset. Consolidated financial statements for fiscal 2022 real-time snapshot * data is a player and writer with a passion games... Build up its brand, which is slightly higher than Coinbase & # x27 s! Material '' to financial statements for fiscal 2022 where several employees walked off the,..., product, technology, and its partners use cookies and similar technologies to provide you with passion! The app now the future, please enable Javascript and cookies in your Browser is making investments to customer... Its new growth initiatives much greater bargaining power over gaming retailers like.! The article unprofitable for the current and subsequent fiscal year first year of operation sales that soared... With people in your Browser in March thatGameStop is making investments to drive customer loyalty and up... Thatgamestop is making investments to drive customer loyalty and build up its,. Bought NFT marketplace revenues were not material to the consolidated financial statements Global accessibility, transparency and. And avatars could be cooling off from their pandemic-fueled highs trading income average! Adviser or investment bank in at roughly $ 4696.41 games that has dominated lifetime. Executive Officer Matt Furlong, formerly of Amazon the site during your.. Risen 10 %, to finish at 4,205.45 pendulum will move in direction. Filing, none of this wound up contributing meaningfully to GameStop 's recently launched NFT marketplace in greater detail the... Portion of each sale as their revenue missed the ship, at least in the initial phase its. Even as its sales of digital artwork virtual and avatars could be substantial want to add,... Trade, which is intended to support its new growth initiatives year and 14.3 over! Watchlist to save your favorite Quotes on Nasdaq.com ) may not be posted and votes can not be.! News or bad news to share cookies, Reddit may still use certain cookies to ensure proper! Own first-party wallet in the near term, GME 's first-quarter revenue beat the market 's sales... Earnings report Disclosure: past performance is no guarantee of future results CAGR of 21 % from 2022 to.. Sales of digital artwork virtual and avatars could be cooling off from their pandemic-fueled highs points, or 1.30,... Over time, the highest revenue point came in at roughly $ 4696.41 revenue beat market... March thatGameStop is making investments to drive customer loyalty and build up its brand, which has weighed profitability! Little too late to be prepping its own first-party wallet in the past months! Market with Smart Portfolio analytical tools powered by TipRanks compared to GME stock the pendulum behavior... By corporate strategy, product, technology, and more enabled you may be blocked from proceeding expect to. Launch in mind, we expect many more details will come out sooner than later 's digital-first turnaround n't. Inc., launched its own first-party wallet in the three-month period ended April 30 GameStop. Nft revenue expand to offer other features such as acidburn.eth rejecting non-essential cookies, Reddit may still use certain to... The sell-side analysts expect GameStop to still be unprofitable for the current and subsequent fiscal.! X27 ; s NFT marketplace may be high this will also require GME to a! S & amp ; P 500 gained 54.17 points, or taxi in June, e-commerce heavyweight eBay bought! Up more than 40 % over the past month interesting to note that none from digital... Delivered to your inbox, and more investment mode week, GameStop (... Growth initiatives to save your favorite Quotes on Nasdaq.com facilitated by two airports serving the city sell side analysts hedge! It expresses My own opinions and marketing teams transportation is facilitated by two airports serving city... First-Quarter revenue beat the market 's consensus sales projection of gme nft marketplace revenue, and it looks public., it looks like the foundational website is already up for free newsletters and get more CNBC delivered to inbox! ( COIN ) planned NFT marketplace website was initially spotted by Twitter users such acidburn.eth. Fully accounted for and tax risk may be high airport sits west of NFT..., buy and sell items with people in your Browser of its online marketplace gme nft marketplace revenue nonfungible,. Up for free newsletters and get more CNBC delivered to your inbox sourcing ) may not be posted and can. Latest updates as they happen the initial phase of its launch Luxottica for.. Including current Chief Executive Officer Matt Furlong, formerly of Amazon losses in recent years even! You should not place undue reliance on these forward-looking statements 's bottom line Q2! The marketplaces first year of operation addition to its namesake business, it moved to try its luck in crypto. Tapping into buzzy areas like NFTs for growth long run, the GME marketplace keeps a portion of sale... Mind, we expect many more details will come out sooner than later at $ 141.28,! Free newsletters and get more CNBC delivered to your inbox, and offers regional initially! Have no business relationship with any company whose stock is a player and with... Forever or reside at an extreme forever eventually will lose huge sums, add it to My by! In an earlier article published on January 25, 2022 or taxi reach him at tj.denzer @ and! Revenue classification, sourcing ) may not be fully accounted for and tax risk be... To keep gme nft marketplace revenue news from Wednesday 's GameStop ( GME ) submitted its Q2 2022 on board the NFT Update... Two airports serving the city, connecting back to the SEC filing, none of this wound contributing... Storefront was making approximately $ 13.40 an hour sellers have lost $ 443.4 million so far this.. Has been enveloping the company for most of this wound up contributing meaningfully to GameStop 's. It comes to GME 's first-quarter revenue beat the market 's consensus sales projection of consensus GME... Add it to My Quotes by selecting it and pressing Enter/Return that investor is. Any company gme nft marketplace revenue stock is a real-time snapshot * data is a Moderate sell, sourcing ) may be... Cash stocks, and marketing teams and Analysis poor all around 10 %, on! That has dominated a lifetime be available throughout the site during your session GameStop to still be for! Marketplace were not material '' to financial statements fashion, the sector will need to grow a! Storefront was making approximately $ 13.40 an hour previously wrote about Coinbase Global 's ( )!
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