GameStop (GME) stock plummeted 4% on Wednesday after its latest earnings report, as the third quarter highlighted the company’s failure to invest in Bitcoin. Operating profit of $41.3 million beat expectations, but core retail sales were well below Wall Street expectations. The company’s Bitcoin holdings also resulted in $9.2 million in unrealized losses to its financials in the quarter.
It also highlighted GameStop’s struggle to adapt to the shift to digital game downloads and streaming, with hardware and accessories sales down 12%. The rise of digital buyers in the gaming world in the late 2010s was a frightening sight for GameStop and brick-and-mortar game retailers, and could lead to the ultimate demise of brick-and-mortar stores in the coming years.
Earlier this year, the gaming retailer announced that it would start investing in Bitcoin, and also new financial plan For venture. However, the collapse of Bitcoin over the past few months has reduced the value of that financial plan and investment in BTC. GameStop’s 4,710 BTC holdings, valued at $519.4 million at the end of the quarter, were acquired earlier this year using proceeds from a massive $1.3 billion bond issue. At the time of writing, GME stock has fallen more than 22% since the announcement of the Bitcoin initiative.
GameStop (GME) is currently trading at $22, but Wall Street experts predict it will fall further in 2026. According to Yahoo Finance and StockAnalysis. only oneThe stock is covered by Wedbush analyst Michael Pachter, who has a sell/underperform rating and a 12-month price target of $13 to $14. This would imply a decline of approximately -41% from current levels.
