GameStop posted wider losses as sales fell, missing Wall Street estimates. Shares, however, rose after-hours after the company announced a partnership with crypto exchange FTX. 

Closing Bell

GameStop Posts Wider Losses As Sales Fall

Welcome back to closing balance center news everyone. We do have an earnings alert this time from Gamestop. The beloved meme stock once was much higher than where it trades now, but it's currently at $26.71 a piece popping nearly 10% after hours did report results but also announced a major partnership, which I do believe is setting the stock higher, forming a partnership with F. T. X. The crypto exchange, you know it well, major backing obviously from Sand Bank man free to billionaire other celebrities like tom brady Gisele Bundchen as well. In terms of the partnership with F. T. X. Those financial terms not being disclosed, but Gamestop will be F. T. X. Is preferred retail partner in the United States. So that's what this partnership is about. We will be following closely for any more details about this that we might get in. The analysts call the earnings call after hours and we'll give that to you tomorrow to. But in terms of the results themselves, let's take a look. The company did report a loss of 35 cents a piece. That wasn't as bad as the loss of 38 cents that Wall Street had expected. Sales came in at 1.1 billion out of sales Estimate was 1.3 billion. So sales actually did miss the mark a little bit, 4% drop in quarterly sales as consumers cut back on discretionary spending amid decades high inflation. Certainly we did see consumer spending really across the board, not just for the gaming industry for instance, Peter out a bit in the second quarter, retailers, for instance, really ramped up inventory expecting supply chain issues. Well, demand just was not there to actually meet that inventory and demand obviously in game stops case as well. Not necessarily there, but still the stop cleaning the gains after hours, still up close to double digits again on this partnership with F t X. As soon as we get more details on the partnership with F t X, we will bring them to here on Cheddar News Closing Bell.