GameStop Soars 22% Amid NFT Creation News

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The dying video game retailer GameStop posted a 3,000% increase in 2021, but the company’s sales continued to decline steadily.

Now GameStop is entering a new market for NFT products with great growth potential. 📲

Shares of American retailer GameStop soared 22.68% after main trading ended, to $ 160.75 per share, amid news of the creation of its own NFT division. This is evidenced by the data of trading on the New York Stock Exchange.

At the same time, at peak values, the growth of the company’s quotes reached almost 33% – immediately after the publication of an article in the American The Wall Street Journal, GameStop shares were traded at $ 174.2 per share.

According to the publication, GameStop intends to create its own online center for the purchase, sale and exchange of NFT goods for computer games, which may include, in particular, clothing for characters and weapons. It is reported that to start development, the company has already begun negotiations with leading game companies and publishers, and also hired 20 people to manage the new division. It is expected that the launch of trading in virtual goods may take place at the end of this year.

In addition, it became known that GameStop is in talks with unnamed companies in the field of cryptocurrency with the aim of signing partnership agreements aimed at exchanging technologies and joint investments in the booming blockchain and NFT industries. According to sources of the publication, in 2022 the retailer intends to sign similar agreements with dozens of crypto companies and invest tens of millions of dollars in them.

Analysts interviewed by the WSJ believe that the field of computer games can become one of the main drivers of the development of the blockchain industry in general and NFT trading in particular, since gamers already spend large sums on the purchase of virtual goods. Several major game developers such as Ubisoft, Zynga and Square Enix have already announced plans to develop similar digital products.

At the beginning of 2021, the shares of GameStop showed a sharp increase – in January alone, the company’s shares went up 17 times. The main version of the growth was the massive closure of short positions on the paper as a result of the actions of investors agreed on the Reddit platform, investors dubbed the company’s securities “memorial”. According to trading data, from March 11, 2020 to December 27, 2021, GameStop shares rose by 3482.4%.

However, this did not save GameStop from a weak quarterly report. The company’s net loss for the third quarter of 2021 rose to $ 105.4 million, or $ 1.39 per share, compared with a loss of $ 18.8 million, or $ 0.29 per share, in the third quarter of 2020. Revenue for the quarter was $ 1.297 billion, up 29.05% year on year. According to the retailer itself, the revenue growth was due to its recent partnerships with Samsung, LG, Razer and Vizio.

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