{"id":523451,"date":"2022-12-08T18:25:00","date_gmt":"2022-12-08T15:25:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-ratings-game-gamestops-turnaround-plan-has-proved-fruitless-so-far-says-analyst\/"},"modified":"2022-12-08T18:25:00","modified_gmt":"2022-12-08T15:25:00","slug":"the-ratings-game-gamestops-turnaround-plan-has-proved-fruitless-so-far-says-analyst","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-ratings-game-gamestops-turnaround-plan-has-proved-fruitless-so-far-says-analyst\/","title":{"rendered":"#The Ratings Game: GameStop\u2019s turnaround plan has proved \u2018fruitless\u2019 so far, says analyst"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36e6c51c014\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36e6c51c014\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-ratings-game-gamestops-turnaround-plan-has-proved-fruitless-so-far-says-analyst\/#%E2%80%9CThe_Ratings_Game_GameStops_turnaround_plan_has_proved_%E2%80%98fruitless_so_far_says_analyst%E2%80%9D\" >&#8220;The Ratings Game: GameStop\u2019s turnaround plan has proved \u2018fruitless\u2019 so far, says analyst&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/the-ratings-game-gamestops-turnaround-plan-has-proved-fruitless-so-far-says-analyst\/#There_are_plenty_of_challenges_ahead_for_the_videogame_retailer_and_meme-stock_darling_analysts_warn\" >There are plenty of challenges ahead for the videogame retailer and meme-stock darling, analysts warn<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/the-ratings-game-gamestops-turnaround-plan-has-proved-fruitless-so-far-says-analyst\/#James_Rogers\" >James Rogers<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CThe_Ratings_Game_GameStops_turnaround_plan_has_proved_%E2%80%98fruitless_so_far_says_analyst%E2%80%9D\"><\/span>&#8220;The Ratings Game: GameStop\u2019s turnaround plan has proved \u2018fruitless\u2019 so far, says analyst&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"There_are_plenty_of_challenges_ahead_for_the_videogame_retailer_and_meme-stock_darling_analysts_warn\"><\/span>\n  There are plenty of challenges ahead for the videogame retailer and meme-stock darling, analysts warn<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001462034\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001462034\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop Corp. reported its seventh consecutive quarterly loss after the market closed on Wednesday and highlighted its goal of returning to profitability in the near term, but analysts warn there are plenty of challenges ahead.<\/p>\n<p> \u201cThroughout 2021 and 2022, we were extremely focused on repairing our decayed foundations,\u201d said GameStop<br \/>\n        GME,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203755179\/composite\" class=\"positive\">+8.45%<\/bg-quote><br \/>\n       CEO Matt Furlong on a conference call late Wednesday. Furlong also described headcount reductions in the second half of 2022 and said that GameStop is a stronger business than at any time in the recent past.<\/p>\n<div class=\"paywall\">\n       While shares rallied more than 6% shortly after Thursday\u2019s open, analysts weren\u2019t convinced that the company\u2019s efforts to reshape itself have delivered results. <\/p>\n<p>\u201cGameStop\u2019s turnaround plan has proven fruitless so far, as reflected by the announcement of reductions to the company\u2019s corporate headcount in the back half of this calendar year,\u201d Wedbush analyst Michael Pachter wrote in a note released on Thursday. \u201cShort-term headwinds include poor results for its NFT [non-fungible token] marketplace, a contraction of the broader NFT space, ongoing hardware constraints, and cash burn.\u201d<\/p>\n<p><strong>Now read: GameStop reports worse-than-expected quarterly loss, revenue decline\u00a0<\/strong><\/p>\n<p>GameStop entered the NFT marketplace earlier this year when it forged a partnership with Immutable X Pty Ltd. to create a fund of up to $100 million in Immutable X\u2019s IMX tokens.<\/p>\n<p><strong>See also: NFT sales volume at a record low after 20% drop in November<\/strong><\/p>\n<p>The videogame retailer also faces long-term headwinds that include liquidity challenges and an industry-wide shift toward digital <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">download<\/a>s, according to Pachter.<\/p>\n<p>Set against this backdrop, he lowered his GameStop price target to $5.30 from $6. He has an underperform rating on shares of GameStop.<\/p>\n<p>Other analysts have also noted the difficulties facing the company. \u201cRevenue and earnings shortfalls in [the third quarter] reflect, in our view, ongoing challenges to the GameStop retail model and limited progress on new initiatives, although we note limited console hardware supplies and fewer hit video game releases,\u201d Baird analyst Colin Sebastian wrote in a note released on Thursday. \u201cNotably, there was no mention in the release (or on the conference call) regarding the company\u2019s much-publicized NFT marketplace initiative, nor is the company sharing specific data on the e-commerce transition.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>Related: GameStop enters NFT marketplace with Immutable X partnership<\/strong><\/p>\n<p>Baird also expects to see more store closures and headcount reductions from the company. \u201cGameStop\u2019s increasing focus on operating efficiency makes sense given secular headwinds and limited progress that we can tell on key strategic initiatives,\u201d Sebastian wrote.<\/p>\n<p>However, the company may benefit from improving supplies for all major consoles during the holiday period and into next year, according to the analyst. On a seasonal basis, it could also be helped by an increase in new game launches.<\/p>\n<p>GameStop,\u00a0like its fellow meme stock AMC Entertainment Holdings Inc.<br \/>\n        AMC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200235402\/composite\" class=\"positive\">+4.05%<\/bg-quote><span>,<\/span><br \/>\n      \u00a0was a major beneficiary of the meme-stock buying frenzy in January 2021, which sent the struggling company\u2019s shares skyrocketing to dizzying heights. Between January and March 2021, GameStop\u2019s stock price\u00a0rose more than\u00a01,200% and the company\u2019s market cap surpassed $17 billion.<\/p>\n<p>GameStop\u2019s stock has fallen 40% this year, outpacing the S&amp;P 500\u2019s<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.91%<\/bg-quote><br \/>\n       decline of 17.5%. The company\u2019s market cap is now around $7.1 billion.<\/p>\n<p><strong>Also read: GameStop stock soared, then fell all the way back down, in biggest price reversal since May. But why?<\/strong><\/p>\n<p>Independent equity-research firm New Constructs added GameStop to its list of \u201czombie\u201d stocks in August and has highlighted the company\u2019s cash burn as an issue.<\/p>\n<p>GameStop ended its most recent quarter with $1.042 billion in cash, cash equivalents and marketable securities. GameStop\u2019s long-term debt remains limited to a low-interest, unsecured term loan associated with the French government\u2019s response to COVID-19, the company said.<\/p>\n<p>Of three analysts surveyed by FactSet, one has a hold rating and two have a sell rating for GameStop.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"James Rogers\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/james-rogers\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/jamesjrogers\",\"text\":\"@jamesjrogers\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:james.rogers@marketwatch.com\",\"text\":\"james.rogers@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"James_Rogers\"><\/span>James Rogers<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"271_MW\" author-name=\"James Rogers\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fgamestops-turnaround-plan-has-proved-fruitless-so-far-says-analyst-11670513116%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7164-F126DBE13A1A%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;The Ratings Game: GameStop\u2019s turnaround plan has proved \u2018fruitless\u2019 so far, says analyst&#8221; There are plenty of challenges ahead for the videogame retailer and meme-stock darling, analysts warn GameStop Corp. reported its seventh consecutive quarterly loss after the market closed on Wednesday and highlighted its goal of returning to profitability in the near term, but&#8230;<\/p>\n","protected":false},"author":1,"featured_media":523452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-618280\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-523451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=523451"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/523452"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=523451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=523451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=523451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}