GameStop (GME) shares closed 10% lower on Thursday at $155.76 each. The video game retailer's stock was under pressure throughout the session after announcing mixed quarterly results on Wednesday afternoon.
GameStop has been a retail trade favorite this year. The stock closed at $247 on November 19. It has since come down along with other risky equities and growth stocks during recent market volatility.
The company's earnings call following the quarterly results was brief, and as with other ones this year, included no Q&A session and or guidance.
However GameStop's CEO indicated it's venturing into new digital areas.
"We believe our emphasis on the long-term is positioning us to build what will ultimately become a much larger business relative to where we are in 2021," CEO Matt Furlong CEO said during the earnings call on Wednesday.
"We've also been exploring emerging opportunities in blockchain, NFTs and Web 3.0 gaming," he said.
GameStop is undergoing a turnaround plan towards digital after Ryan Cohen, the co-founder of e-commerce platform Chewy (CHWY), bought an activist stake in the company and then joined the board as chairman in June.
Cohen, known as "Papa Cohen" by the retail trader crowd, has revealed few details about his strategy.
"We are trying to do something that nobody in the retail space has ever done,” Cohen said at the company's annual meeting this past June.
GameStop went through a C-Suite overhaul over the summer, with Amazon (AMZN) veterans Matt Furlong appointed as CEO and Mike Recupero as CFO.
Jenna Owens, also a former Amazon executive, was tapped by Cohen for the COO position. She spent only seven months at the job before leaving the company in October.
Only a few analysts cover the stock. The consensus expectations from the three who rate the company were for an adjusted loss per share of 52 cents, with revenue of $1.19 billion for the third quarter.
Here are the main metrics from GameStop's report:
Revenue: $1.30 billion vs. $1.19 billion expected, $1.005 billion Y/Y
Adjusted EPS: -$1.39 vs. -$0.52 expected, -$0.53 Y/Y
GameStop also established new offices in Seattle and Boston, which the company described as "technology hubs with established talent markets."