On January 06, GameStop Corp. (GME) stock soared high in the after-hours on reports of its NFT plans. During the regular session, the stock traded in the green with a slight addition of 1.28% at its close of $131.03. Following the reports, the stock rallied big after hours to reach $160.50. The stock added a further 22.49% or $29.47 at a heavy volume of 2.62 million in the after hours.
Founded in 1996, the video game retailer, GameStop Corp. is headquartered in Grapevine, TX. Currently, the company has a market capitalization of $9.88 billion with its 76.35 million shares outstanding. Moreover, the GME stock has subtracted 11.70% in the past five days while it added a huge 640.70% last year.
What is going on with GME stock?
According to The Wall Street Journal, the company is in the move for launching a business segment related to cryptocurrency and NFTs. Previously, GME’s CEO Matt Furlong had mentioned NFTs and crypto in a teaser last year. Furthermore, the company is also looking into partnerships with crypto companies for co-investment in developing games based on crypto and NFT tech. Currently, the company already has a website designed for NFTs.
Given the popularity of Non-Fungible Tokens, these reports resulted in investors flocking towards the GME stock. Hence, the after-hours saw a huge volume of 2.62 million, which drove the stock up to reach $160.50. Consequently, the stock increased by a huge 22.49% in Thursday’s after-market session.
Recent Developments
On November 04, the company announced securing a new $500 million global asset-based revolving credit facility (ABL facility). The new oversubscribed ABL facility replaced the company’s existing facility of $420 million. The existing facility is due in November 2022. Further, the new facility not only provides enhanced liquidity but also reduced borrowing costs, has lighter covenants, and adds flexibility.
In addition, the lead arranger for the facility was Wells Fargo Bank, N.A., which will also serve as the administrative agent for it.
GME’s Financial Data
On December 08, the company declared its financial results for the third quarter of 2021.
According to the results, GME had net sales of $1.279 billion in the third quarter of 2021. This compares to $1.005 billion in the year-ago quarter.
The company ended the third quarter of 2021 with cash and cash equivalents of $1.413 billion, on October 30.
