The Clap
GameStop (NYSE:GME) saw its stock slump after missing Q3 earnings expectations on both the top and bottom lines.
What
The company saw its sales drop by 8.5% YoY during Q3 to record $1.19 billion, missing the $1.39 billion estimates.
In addition, the company recorded a loss per share of 31 cents, a bigger loss than the expected 29 cents.
So What
Consumers have been shifting to buying digital downloads of video games rather than game discs, which is taking a toll on the company’s performance.
In order to adhere to this changing consumer trend, the company partnered with FTX to try and push into digital assets, but that went sour when FTX filed for bankruptcy in November.
Now What
According to sources, GameStop has begun another round of job cuts, after announcing the first round of layoffs back in July.
