GameStop
shares fell after the videogame retailer reported worse-than-expected fiscal third-quarter revenue.
But the company also revealed it may start to use its cash to invest in stocks.
For the quarter ended in October,
GameStop
reported an adjusted loss of 1 cent a share; analysts polled by FactSet had forecast a loss of 8 cents a share. The company’s sales of $1.078 billion were below expectations for sales of $1.18 billion.
In the same quarter, hardware and accessories sales fell to $579 million, down from $627 million the prior year. Software sales declined to $321 million from $352 million.
GameStop stock dropped 8% to $13.65 in premarket trading Thursday, the morning after the release. It has been a difficult year for the meme stock. GameStop stock is down 20% so far this year.
In its 10Q filing with the SEC, GameStop said it “traditionally invested our excess cash in investment grade short-term fixed income securities” primarily in U.S. government-related securities and deposits.
But on Dec. 5, the company’s board of directors approved a new investment policy that will allow GameStop to invest in stocks and other investments.
GameStop didn’t immediately return a request for comment for more details on the new investment policy.
The company had about $1.2 billion in cash and marketable securities at the end of the October quarter.
Write to Tae Kim at [email protected]
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