Game Stops as Paypal Acquires Paidly
Gamestop released their financials yesterday and here's what's up. Also, you can now pay after in Japan!
Hey Hisa Fan,
Gamestop
Gamestop corporation, the video game retailer in the middle of the wall street bets results released their financials on Wednesday.
The video game retailer posted a decline despite hopes from investors that the company would post positive returns with the digitization progress slowly taking shape in the company.
The larger-than-expected loss for the period ended July 31 was attributed to a higher-than-projected overhead on the company’s financials.
GameStop was one of the companies that were involved in the “reddit meme stocks craze” with the hype pushing the companies share price by up to 957% since the year began.
In Numbers
Revenue came in at $1.183 versus the $1.12 billion estimates.
The company reported a loss of $111.3 million.
EPS stood at $-0.76 from the $-0.66 analysts estimate
The company’s sales grew to $1.18 billion from $942 million in a similar quarter last year.
The Reddit Wave
Gamestop Corporation, a stock that was presumed dead and could have been great for a SPAC or reverse listing was selected for a move by a Reddit group r/wallstreetbets for a rally against the old school investment banking.
The move by the Reddit group pushed the share price to experience wild fluctuations as short-sellers, options traders and retail investors placed bids on the stock.
GameStop shares dropped as much as 11% to $177 in extended trading after the company’s CEO failed to accept questions in the 10-minute investors briefing.
The stock was little changed for the day at the close in New York and has risen more than 10-fold this year.
With the news, Gamestop shares continue to drop with the share trading at $185.06 per share, a 13.5% decline on the stock, week on week.
Paypal in Pay Later
Paypal Holdings Inc announced earlier in the week that it had agreed to buy Tokyo based provider of buy now, pay later solutions for $2.7 Billion with the transaction expected to complete in the fourth quarter of 2021.
The acquisition of Paidly will expand the company’s capabilities, distribution and relevance in the Japan’s domestic market which is the third largest ecommerce market in the world.
Paidy's payment services allow Japanese shoppers to make purchases online, and then pay for them each month in a consolidated bill at a convenience store or via bank transfer.
The Japeneese firm uses proprietary technology to score creditworthiness, underwrite transactions and guarantee payment to merchants.
Paypal decline during Wednesday’s trading on Wall street but the counter turned positive during Thursday’s trading with investors optimistic that the debut in Tokyo will open more opportunities for the company in other Asian markets.
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