After suffering a net loss of $147.5 million in the fourth quarter of 2021, GameStop (GME) is looking forward to the launch of its long-awaited NFT marketplace and Web3 gaming unit.
After announcing an NFT and Web3 gaming business in January and announcing substantial cooperation with Ethereum (ETH) scaling solution Immutable X the following month to establish an NFT marketplace, GameStop discreetly built a barebones NFT website in mid-2021.
GameStop announced its plans to launch its NFT marketplace by the end of Q2 2022 as part of its Q4 results, which ended on January 29 and were released on March 17.
The company also mentioned that the Immutable X agreement will net them $150 million in IMX tokens if “certain milestones” are met, and that it has employed “dozens of additional professionals with experience in areas such as blockchain gaming, e-commerce and technology, product refurbishing, and operations.”
GameStop’s net loss of $147.5 million is 83% higher than the previous year. And its loss of $1.94 per share is significantly higher than Wall Street’s $0.84 earnings per share forecast.
The release of GameStop’s Q4 financials looks to have had a substantial influence on GME’s pricing. With the stock currently trading at $81.29. Despite significant improvements in its Web3 activities, GME has been on a strong downward trend this year. With its stock price decreasing by more than 40% since January.
The cost of sales was a big stumbling block to the current figure
Looking deeper into the data, GameStop reported sales of $2.254 billion in the third quarter, up from $2.122 billion the year before. The $1.87 billion cost of sales was a big stumbling block to the current figure. With $538.9 million in selling, general, and administrative expenses.
The company was able to generate more than $1.67 billion in capital. Which was sufficient to pay off “all of the Company’s long-term debt. Except for a $44.6 million low-interest, unsecured term loan related with the French government’s response to COVID-19.”
Despite a pessimistic trend in the NFT market over the past several months, GameStop’s partner Immutable X has grown from strength to strength. On March 8, the company announced a $200 million Series C fundraising round at a $2 billion valuation. Sending IMX’s stock up about 50% in 24 hours to around $1.78. The price has since dropped to roughly $1.54.