Gamestop GME shares are 8.42% lower at 158.99 after the company reported the third-quarter earnings that disappointed investors. GameStop reported losses of $1.39/share in the third quarter. The analysts’ estimate was for a loss of $0.52 per share. The company reported a loss of $0.29 per share in the same quarter last year. The sales came up to $1.30 billion, a 29% increase over sales of $1 billion in the same period last year. The sales beat Wall Street’s expectations of $1.19 billion by 9%.
Software sales declined 2.2% to $434.5 million, while collectibles sales grew 30.8% to $192.2 million, Hardware and accessories sales came up to $669.9 million, a 62% increase year-over-year.
Gamestop shares gained over 741% in 2021, while the last three months is down 20.43%. As of writing GME is 8.97% lower at $158 at the lowest level since August 20.
The technical picture for the stock has turned bearish in December and we can’t rule out a move down to August 4 low at $145.22. What can cancel the bearish picture is a move above the 100-day moving average at $186.56.
The Analysts price target for GameStop – GME
Wedbush Reiterated GameStop (GME) at Underperform and cut the price target from $50 to $40.
Jefferies also cut GME price target, from $190 to $180.