GameStop CEO claims the company is in a much better financial state than at the beginning of 2021.

GameStop

During the fourth-quarter earnings conference, the CEO of GameStop Corporation, Matt Furlong, stated that the company is now in a much better state than it was earlier in the year of 2021.

Furlong stated that GameStop possesses a significant amount of available funds, an insignificant amount of debt, an optimized inventory, and a method for attaining profitability throughout the fiscal year.

He mentioned that even though GameStop has a lot of challenging tasks and plans to carry out, the company is now in a better and more robust state compared to the beginning of this year.

Furlong expressed that they intend to utilize their solid standing in the market to consistently provide an unparalleled encounter to their customers and yield substantial value for their stockholders in the long run.

According to Furlong's data, it seems that the organization wrapped up the year with a sum of $1.39 billion in cash, as well as other financial assets. Meanwhile, GameStop came to a close of the 2021 financial year with $1.27 billion.

Have you considered purchasing shares of GameStop's (GME) stock recently? If so, you may be wondering whether now is the right time to buy. Check out our article "Is GameStop (GME) Stock A Buy Right Now?" for more information.

Why It's Significant: Furlong drew a comparison between the current state of GameStop and how things were at the start of this year. Back then, the company was in trouble and many investors had shorted its stock, but this created a whirlwind among retail traders who went on a buying spree.

At the beginning of 2021, there was a confrontation between retail traders and short sellers, resulting in the surrender of Melvin Capital and Citron Research.

On Tuesday, GameStop reported that they earned $2.25 billion in revenue in the fourth quarter, exceeding the expected amount of $2.18 billion predicted by financial analysts.

Based on information from Benzinga, the organization showed an earnings per share of 16 cents, which exceeded the forecast of 13 cents per share made by Wall Street.

According to information from Benzinga Pro, GameStop experienced a significant increase in their stock value during after-hours trading on Tuesday. The share price rose by 48.5% to reach $26.20, following a 4.6% increase during regular trading hours, when it closed at $17.65.

Take a look at: Trading Approaches for GameStop Share Before and After Q4 Earnings.

© 2023 Benzinga.com. We do not offer recommendations on investments. Every right reserved.

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