GameStop Shares Fell Nearly 8% in Premarket Trading
Tiger Newspress2022-03-18
GameStop shares fell nearly 8% in premarket trading.
Video game retailer GameStop Corp on Thursday reported a net loss for the fourth quarter, as it absorbed high costs from supply constraints and also raised spending to pivot its largely brick-and-mortar business towards e-commerce.
Usually, the holiday quarter is a strong one for the company as new Xboxes and Playstations are launched and demand is high. But component shortages and other supply chain issues, which had hit console makers like Sony and Microsoft, impacted GameStop's business.
Like many other retailers, GameStop has already suffered as the pandemic wreaked havoc with curbs leading to store closures. The spread of the Omicron variant further exacerbated the situation.
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